3 benefits of building an awesome customer relationship
Updated: Feb 8, 2020
Since e-commerce and social media arrived at the scene, the retail industry has changed dramatically.
Most brands and online stores have been focusing and concentrating on building relationships with people in order to empower their brand and build lasting relationships that will result in long term revenue from loyal customers.
Statistics show that returning customers spend a lot more than one-time customers do.
Just think about it, if someone purchases a product from you, you’ve made a sale. If you are able to get them to buy a product from you once a month, you’ve made 12 sales for the year, and who knows how many more over the course of the customer’s lifetime. This makes investing time and resources into improving your customer relationships well worth it.
Here are some of the benefits of building customer relationships for your e-commerce business:
1. More customer feedback
Loyal customers who develop a good relationship with you and your business will be more inclined to share their opinions more often.
After all, if they trust your brand, they will expect you to listen to them or at least their feedbacks. This will lead them to tell you about opportunities that could improve your products or services.
Customer feedback can be invaluable. If you act on it, you prove to your customers that you really do take note on their feedback and this can raise their opinions of you to even greater heights.
2. Improved social proof through more positive reviews and testimonials
The foundation of relationship marketing is keeping the customer happy.
Happy customers mean positive reviews, and these reviews will help you attract more customers. Positive reviews always have a deeper impact especially if you have an online store.
3. Increased ROI and revenues
A study has shown that over two-thirds of all companies receive a better return on investment when they work to keep their previous customers than when they try to get new ones.
Also, a Harvard Business Review article showed that increasing customer retention rates by 5% increases profits by an average of 25% to 95%.
Good customer service is the most important base of an online business.