Today, those in business are quite familiar with software upgrades usually designated by a number such as 1.0 or 2.0.
Research from McKinsey suggests as solutions became more difficult to understand, some forward thinking businesses created “dive and catch” teams to increase retention among at-risk accounts. The actions of these teams centered on working with clients to secure more value from their solutions.
What ultimately happened was the creation of a formal customer-success function. This proactive upgrade from 1.0 customer service to 2.0 customer service reduced churn and more importantly became a key differentiation among these firms as they secured new clients.
Much research has been released regarding the cost of acquiring new customers versus keeping existing ones. McKinsey’s benchmark data suggests that revenue from existing customers account for one third to one half of total revenue growth. This fact is even true for start-ups. When looking to expand revenue, costs from existing customers still are a fraction compared to acquiring new customers.
One of the key points within this research was customers have different needs and what they value may vary. This key point supports other research by Vibes regarding personalization of customer focused marketing efforts.
Vibes research suggests people are craving the personal touch even with mobile marketing. This personalization drives conversions, improves customer retention and generates a positive return on the marketing dollars. Personalization goes beyond the welcome message. Product recommendations, offers, articles and even promotions when correctly executed are now part of that personalized marketing.
Some small to mid-size businesses have embraced mobile email marketing. Vibes data reveals the addition of personalized recommendations has increased average order value by 32 percent and conversion rates by 10 percent.
Just as customer success has moved from 1.0 to 2.0, customer response time has also increased. Answering the phone, the emails, the texts promptly is now essential even more so than in the 20th century.
The business world continues to change because of technology. Small business owners, executives and sales professionals who understand and embrace changing their customer service experience from 1.0 to 2.0 will be ahead of the flow as more and more customers engage in mobile interactions using their smart devices.
Leanne Hoagland-Smith is an author, speaker and executive coach. Her weekly column explores issues that impact the bottom line of firms with fewer than 100 employees. She can be reached at 219-508-2859.