One of the most important characteristics that a company must preserve is its relationship with its customers.
The customer is a vital part of the business and it is essential that they feel motivated and happy with the experiences they have when interacting with brands .
In such a competitive market with so many options, those businesses that treat customers differently and value good relationships .
How have you been managing your customer relationships? Discover in our post the importance of this topic and how you can measure this investment in your company!
What is customer relationship?
When it comes to building bonds and relationships, it's not about overinvading the customer's space in an attempt to capture their memory . Such an experience can actually backfire and be detrimental to the consumer.
Maintaining a relationship with a customer means going beyond traditional sales, anticipating desires, ensuring good experiences, and delivering true value . Put that way, it seems simple, doesn't it?
But by knowing and interacting with the customer, it is possible to understand them better, know what they are looking for and when it is important to offer new products.
Furthermore, it is possible to offer personalized treatments and treat each person as if they were the most important client.
Of course, as you acquire more customers, it can become more difficult to know and please everyone individually. That's why it's important to have customer success teams that are attentive to this crucial aspect of the business.
It is also valid and relevant to have CRM strategies, which help and map interactions, searches and customer profiles , making it easier to control demands.
Investing in customer relationships increases the company's trust, both for consumers and the market, in addition to building loyalty and making customer problems easier to identify and resolve , reducing losses and frustrations.
Loyal customers, in addition to returning to your business, promote marketing and attract new consumers to learn about your business.
How to measure customer relationships?
Many companies understand the good reasons for creating initiatives, building teams, and investing in customer relationships, but they have doubts about how to measure the results of these investments , right?
That's why it's important to pay attention to some metrics that can quantify behaviors and trends, allowing you to measure and evaluate the actions taken by the company .
By using good information, you can make more strategic decisions based on numbers and real-world business facts. We've selected some metrics that are important to measure and that you can put into practice right now!
Customer Acquisition Cost – CAC
Customer Acquisition Cost shows how much a business invests to acquire each new customer .
This metric covers the entire customer journey , from attraction and lead to closing the purchase, all important phases of the customer relationship.
To calculate CAC, simply divide the sum of investments to acquire a customer by the number of customers acquired in a given period, that is, CAC = Sum of investments / Number of customers acquired .
The total investment must consider expenses directly involved in customer acquisition, such as salaries of responsible teams, tools used, advertising, software , events, telephone contacts, printed materials, among others.
It is important to have a CAC lower than the ticket spent by the customer in your store and also lower than the LTV, Lifetime Value , which we will explain in the next topic.
Lifetime Value – LTV
LTV, or Lifetime Value, refers to how much a customer contributes to your company over their lifetime —from their first purchase or contract signing. Lifetime Value is an important metric and should be measured at regular intervals.
Monitoring this number marketing goals and reduce acquisition costs, as well as fostering a more lasting relationship with your customers, encouraging them to spend more and extend their relationship with your company.
There are a few ways to determine this metric, but the simplest and most basic is to add up a customer's revenue (annual revenue x average customer lifetime) minus the initial cost of acquiring them.
In other words: LTV = Revenue from a customer (annual revenue x customer relationship in years) – Customer Acquisition Cost (CAC).
To understand better, let's look at an example.
Let's say a company generates, each year, 5 thousand reais per customer (who stays with it for 10 years) and that its CAC is around 3 thousand.
The calculation would be: R$5,000 x 10 – R$3,000 = R$47,000.00.
Based on this value, it is possible to consider strategies to extend contract terms and invest in and further strengthen customer relationships.
It's important to understand that LTV isn't a fixed value, but a metric used to inform strategies, products, and services so that values increase and are updated over time.
NPS – Net Promoter Score
For customer relations, this is a very important metric, after all, it measures the customer's recommendation rate after a period established by the company, regarding the use of the service or product.
With these results, we can understand whether the customer has the potential to become a brand evangelist or detractor . Furthermore, this metric is collected through satisfaction surveys .
NPS question is simple: “On a scale of 0 to 10, how likely are you to recommend us to a friend or colleague?” , followed by an open space for the customer to explain the reason for the score.
From there, the metric divides customers into three categories – promoters (scores 9 and 10), neutrals (7 and 8) and detractors (0 to 6).
Knowing the categories, it is possible to calculate the company's NPS by subtracting the percentage of promoters and detractors:
A high NPS means the satisfaction level is good. The lower this number, the poorer the customer experience and relationship with your brand.
Churn rate
The churn rate is the number of customers who abandon or cancel products or services in certain periods .
To calculate this rate, simply follow the formula:
Churn = Customers who canceled the service during the period / customers at the beginning of the period x 100.
The churn rate allows us to think about new customer retention and relationship strategies.
5 customer relationship tips to improve your results
Customer relationships are one of the most important strategies for any successful company. A good customer relationship can lead to increased sales , customer loyalty, and new business.
Tip 1: Know your customer
The first tip for a good customer relationship is to know your customer. Understand their needs, desires, and expectations. The more you know about your customer, the easier it will be to serve them and exceed their expectations.
To get to know your customers, you can conduct satisfaction surveys , analyze sales and service data, and talk to your customers directly.
Tip 2: Be consistent
Customer relationships are an ongoing process. It's important to be consistent in your actions and messages. If you promise something to the customer, deliver on it. If you change something, let the customer know.
Consistency builds trust and credibility.
Tip 3: Be proactive
Don't wait for the customer to come to you with a problem. Be proactive and try to solve problems before they arise.
You can do this by offering personalized service, providing useful information, and developing efficient service processes.
Tip 4: Offer value
It's not enough to simply meet your customer's needs. You need to offer value to your customer. Value can come in many forms, such as high-quality products and services, competitive prices, and excellent customer service.
Tip 5: Use technology to your advantage
Technology can be an important ally in customer relationships. You can use it to automate tasks, collect data, and personalize service.
Conclusion
Investing in customer relationships is extremely important for business, generating trust and making companies more competitive .
Having consumers on your side ensures that they return, become loyal, and, more than that, comment positively about the business, promoting the company's profile.
Customer reviews are very important, especially in a scenario where everything is easily found and shared on social media.
Knowing how to listen, deliver value, and solve problems quickly and effectively strengthens customer relationships , and results will certainly come faster.
More than investing in relationships, it's important to always focus on strategies and measure each action . Metrics are entrepreneurs' allies in understanding what's working and what needs to be changed quickly.
Rely on the numbers and formulas that provide new directions and insights for business development, and start your changes now.
What have you been doing to improve your customer relationships? Now that you know more about this topic, learn about our solutions that will help you improve your customer experiences!
