Increase Customer loyalty and make your connected customers spend 67% more than new ones. –Bain
It is one of the most important factors to look after for any brand. Having loyal customers is not only financially beneficial for a brand but it reflects company behavior towards customers.
21st century customers are extremely straightforward with what they want. Making customers loyal is a challenge because getting customers and retaining them in itself is a highly difficult task. So when you get customers one has to do all it can within and beyond its capabilities to retain them and make them loyal.
Table of contents
- 3 Quick go through methods to test customer’s loyalty
- How a knowledge base software helps increase customer loyalty
- Following are ways how a knowledge base software can help
3 Quick go through methods to test customer’s loyalty
1. Customer loyalty index
A CLI or Customer Loyalty Index is the most common tool to analyze customers’ loyalty by understanding the customer by asking primary questions. The questions could be from the following three in different variations:
- Likeliness to recommend to friends or family.
- The likeliness of the customer to buy from the same brand again.
- The likeliness of the customer to try the brand’s other products
The options given to customers are calculated by giving each point a score. So depending on these answers, customer loyalty can be tested.
2. Customer engagement score
Customer engagement score in the case of an app is calculated on the amount of time a customer spends using the product or service including the elimination of idle time spent on the app.
The times a repurchase is done or revisiting of the service also indicates appreciation or usefulness of the product. This helps in measuring where help or improvement might be required in the product.
3. Loyal customer rate
This simple method – loyal customer rate – is easy to calculate. It gives a somewhat close to real figures and where a brand stands in terms of customer loyalty retention.
To measure this, you divide the unique customers of a particular brand with people who have purchased more than four times a year. All of this in the same period of time.
From a customer retaining to becoming loyal is a linear process. It is of course time taking. However, if you want to improve on increasing or maintaining customer loyalty, there is one sure shot way and that is using knowledge base software.
How a knowledge base software helps increase customer loyalty
89% of organizations see customer experience as a key factor in driving customer loyalty and retention.
There is a saying that goes- Stitch in time saves nine. It is about sewing up a small rip in a cloth when it is small rather than stitching the same cloth when the rip tears apart even bigger.
It means that it is better to fix a problem when it is small instead of waiting for it to grow bigger.
Using this analogy let us look at why you have to be ahead of your customer’s expectations to increase their loyalty towards your brand. It is all in understanding patterns. And you can understand this pattern with the help of a knowledge base software.
Following are ways how a knowledge base software can help
1. Retention of relevant information
72% of consumers say that when contacting customer service, they expect the agent to ‘know who they are, what they have purchased and had insights into their previous engagements. Customers like to feel valued for their purchase of products or services.
A knowledge management software helps retain customers’ information and automatically gives solutions by remembering their purchases. It also provides suggestions for previously purchased products. This makes the customer feel valued by the brand and increases loyalty.
2. Identifying problem areas:
When using an AI-powered knowledge base software you can easily identify what the root causes are. A knowledge base software maintains a record for keywords searched, most popular content searched by contact center agents are on display.
This creates an understanding of what the customers are looking to find solutions for. Helps understand what is lacking so the areas can be improved upon for a better experience.
3. Improving problem areas
After locating a pattern in a frequently recurring problem a knowledge base software helps you create articles and FAQs for the same topic. This helps customers not waste time to call a contact center but rather see the solution. without wasting time.
If a customer is able to find solutions by themselves though self- customer service portals, their loyalty increases because of your consideration of their problems.
4. Taking real-time feedback
After a call with a customer on the contact center, both agents and customers can give their feedback on whether the problem was resolved. This feedback reflects real-time in the analytics recorded by the knowledge base software.
How this helps in maintaining customer loyalty is that a knowledge base software takes feedback and gives an overall analysis as it is happening. It helps the contact center reach out to the customer with a suitable solution. This increases customer experience and therefore their retention.
Maintaining customer loyalty is easy with the use of knowledge base software. As discussed, customer experience is the key to creating lasting impressions on customers. you can plan in advance how to cater to customers and help them before they come to contact centers. Out of the various benefits a knowledge management software offers the fact that it can help with increasing customer experience, which plays a major role in increasing customer loyalty is a win-win.