3CLogic's Contact Center Blog

How do you define customer loyalty? You won’t find it in the dictionary, and it will change drastically depending on who you ask. But through all of the various definitions, there is a common theme which is often overlooked--the integral part emotion plays within the concept of customer loyalty.

If you talk to any sales rep, they will tell you, it is easier to retain customers than to gain new ones simply because there is already an established trust, or emotional investment that has take place. Loyal customers are more likely to drive sales, simply due to the fact that they are already familiar with the product, they understand their growth potential with the product, and are therefore more likely to increase the size of their account. While this can boost revenue, these customers can also serve as an asset for prospective clients by offering a personal recommendation or review based on their own experience with your company. You are more likely to go see a movie if a friend has recommended it, right? Same concept.

“It’s not personal, it’s business,” or so the saying goes. But today, everything is personal – or at least it should be given the growing emphasis and importance on personalizing each customer engagement. In fact, a recent study by Forrester Research and Salesforce listed “Personalizing Customer Service Interactions” as one of the key trends facing customer service organizations.   And with more than 70% of executives believing personalizing the customer relationship is of strategic importance, its no wonder its driving the way organizations currently target and service their customers. And there is no denying the results.

The contact center space is changing. So what should one expect in 2015?

Continued Implementation of Self-Service: Recent studies have shown 67% ofcustomers prefer self-service over speaking to a live representative, which has its benefits when considering self-service interactions are 200-300% less expensive than those handled by a live agent. While the use of live agents is not expected to decrease, the importance and extended use of self-service is likely to be a continued theme next yar.

Growing Deployment of Cloud Infrastructures: By 2015, cloud computing spending is projected to reach 155 billion, compared to 46.4 billion in 2008. And according to DMG Consulting, cloud-based infrastructure is the fastest growing area for the call center industry, predicted to almost double between 2013 and 2015. When compared to premise-based solutions, contact centers based in the cloud have experienced 27% reduction in annual contact center costs and a 35% improvement in uptime. Offering superior reliability, scalability, and cost-savings, cloud adoption shows no signs of slowing down anytime soon and likely to continue its successes in 2014 well into 2015 and beyond.

Consider the Following: 

• 70% of buying experiences are based on how the customer feels they are being treated.
• Roughly 9 out of 10 U.S. consumers say they would pay more to ensure a superior customer experience.
• 80% of companies want to use the customer service/experience as a way to differentiate themselves from their competition.
• On average, loyal customers are worth up to 10 times as much as their first purchase. 

Today, it’s not just about servicing your customers—it’s about offering a memorable experience and creating a long lasting relationship. But while 80% of companies believe they deliver “superior” customer service, only 8% of customers agree. And when you consider 86% of consumers will quit doing business with a company following a single bad customer experience, the challenge facing contact centers quickly becomes clear.