June 12 by Kamal Ahluwalia
How can we increase revenue?
That’s the question that business executives ask themselves everyday – it is the main goal for any company. As a company, you may go through hours and hours of meetings to discuss various strategies on how to get that desired hockey stick-type growth on your revenue charts.
What if I told you that the answer to driving revenue was right in front of you? Yes, that’s right. The secret to driving revenue are happy customers.
The Benefits of a Happy Customer
We all understand that the concept of customer service is vital to business and we’re aware of the common saying of “keep your customers happy.” But you shouldn’t believe in these concepts just because it sounds like the right thing to do. You should practice these mottos because it truly benefits everyone involved. The following are the benefits of a happy customer:
1. A happy customer leads to high user adoption
The happier your customers are with your product or
service, the more value they will see in it and continuously
use. A successful rate of user adoption opens the doors for opportunities to up-sell, cross-sell, or have a user renew their service. Considering that a new customer is six to seven times more expensive to acquire than a current one, renewals should be a top priority for any company. If your clients do not see the value in using your product, then it’ll be a challenging task to explore any up-selling or cross-selling. Focusing on high user adoption can steer you away from those challenges and make the process easier for your sales reps in negotiation when the time to discuss renewing a contract comes around.
2. A happy customer can turn into a strong referral
Treating your clients well will lead them to become powerful, relevant referrals for future prospects down the road. There is no better way to guide the decision process of a prospect than having a current user speak on your behalf. You are giving them a different perspective on your product or service – a perspective other than your own. Having an array of customer referrals can be an effective way to move deals faster and it demonstrates to prospects that you have dealt with pain points similar to theirs. A plethora of happy users can evolve into a customer referral program that includes a heavy variety of references that can be strategically instrumental in different deals – no matter the industry, location, and so on. An estimated 65% of new business coming from referrals, illustrating the critical nature of these programs.
3. A happy customer can turn into a brand evangelist
According to the White House of Consumer Affairs, a
dissatisfied customer will tell 9 to 15 people about their poor experience, while 13% of those dissatisfied clients will tell more than 20 people about the problem. Clients are constantly speaking about your brand, and the last thing you want is to have negative comments floating around. Treating your ecosystem well and making them happy can eliminate that possibility. A happy customer can ultimately turn into your best brand evangelists, who advocate your brand because they truly believe in it. Nothing is better than having individuals speak highly of your brand because it is excellent promotion that is 100% genuine. In addition, customer stories and case studies are considered one of the
most effective tactics in content marketing according to 65%
of B2B companies that use them.
The power of a happy customer should not be taken lightly. Terrific customer service and investing time and effort into treating your clients the right way can benefit your company in the long-run and help catapult your revenue. So next time you spend weeks and weeks on how to reach that hockey stick on your revenue chart, be sure you have already catered to the people that matter most to your business – your customers.