Google introduced the idea of the Zero Moment of Truth back in 2011, and has invested a lot of effort into getting companies to buy into it. The idea is that the pre-purchase phase of the customer journey, in which a customer researches, comparison-shops, asks for recommendations, and reads reviews, is essentially a countdown to moment Zero. That’s when the customer pulls the trigger and makes a purchase decision.
We’re not claiming that Google is wrong. The Decision Point is inarguably one of the key destinations on the customer journey. But is this really where the journey ends? Hardly. In fact, it is a pivot point: the countdown becomes a “count-up,” comprised of every touchpoint that happens after the sale. What we’re counting up to: customer loyalty, satisfaction, and eventually, ideally, ambassadorship. In other words, retention.
As it stands, though, most businesses invest far more effort into customer acquisition than retention, doubling down on the notion that their job is essentially done when a prospect becomes a customer. Not only is this short-sighted, study after study has shown that acquisition is more expensive than retention and relationship marketing. (In fact, we couldn’t locate even one that argued the opposite.) The article by eConsultancy linked to above also included some head-turning statistics on this phenomenon:
- Attracting a new customer costs five times as much as keeping an existing one.
- Globally, the average value of a lost customer is $243.
- 71% of consumers have ended their relationship with a company due to poor customer service.
- The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20%.
Shifting Focus: How to Extend the Customer Experience Past Purchase
For instance, take a look at your onboarding materials, like “Thank You” pages and auto-generated emails when a customer creates an account on your site. Do they just say Thank You, or do they invite further opportunities to engage with your brand, tips for using your product or service, or incentives like coupons or discount codes? Any touchpoint that can be automated can also be enhanced to build the relationship.
Be helpful, even when there isn’t a problem.
Periodically check in with your customer to ask how things are going and if they have any questions. There could easily be something confusing or bothering them that they either don’t think is a big enough deal to bother you with, or haven’t gotten around to contacting you about yet. Here again, automation can help: reminders, thank-you’s, and Frequently Asked Questions guides can be scheduled at intervals in advance.
Pay attention to the details.
Nothing makes a customer raise an eyebrow like businesses that can talk about their product till the cows come home, yet don’t seem to understand its actual role in day-to-day life, as if they’ve never used it themselves. Imagine how your customer uses or experiences your product or service at home, after hours – not just the obvious, as-prescribed applications, but how it is related to their overall life and priorities.
Leverage your social & direct marketing channels.
This may be the only area where the acquisition/retention formula gets turned on its head: acquiring followers and subscribers is cheap, but engaging them is where the real effort comes in. Not only do customers treat social media and emails as additional customer service channels (and expect you to meet them there), they assume they will get something in return for following you, such as exclusive offers, informative videos and graphics, or even shareable entertainment.
Listen to the Voice of the Customer.
You had to know this was coming, right? At CSP, we believe that Voice of the Customer tools and measurements are the lifeblood of a healthy customer experience. Relationships, after all, work both ways, so successful customer relationship management means handing the microphone over to the customer to make sure they have their chance to tell you what is working for them and what’s getting in their way.
Customer experience that treats the sale as the endpoint is an unclosed circle: all the brand equity, sentiment, and trust you nurtured to encourage the sale, are liable to leak out through this gap. Selling to existing customers is easier than converting new ones. It is worth your while to envision the customer journey as a lifetime relationship, not a finite transaction.