The Forgotten Customer: Still a Ticking Time Bomb?

In 2018, our founder Anna Gong shed light on a critical issue affecting many businesses: the Forgotten Customer. These are loyal customers who receive little to no engagement from the companies they support, whether through emails, phone calls, or other forms of communication.

Six years later, this issue still persists. With 68% of customers leaving a company because they feel neglected, addressing this issue is crucial for long-term success.

The Customer Experience

Customer Experience (CX) encompasses the customers’ perceptions of how a company treats them. It includes every interaction they have with the business – from browsing the website and speaking with customer service to using the firm’s products and services. A positive CX can differentiate your brand in a competitive market, fostering deeper connections with your customers and boosting loyalty.

Why is Customer Experience Important?

1. Proactive CX Fosters Loyalty & Repeat Purchases

In 2018, Anna emphasized that many companies engage with customers reactively rather than proactively. Customers typically receive attention only when they are on the verge of leaving or after they have had a negative experience. Engaging customers only during crises or at the point of churn is insufficient. Today, companies need to adopt a proactive strategy, sending personalized messages that delight customers and make them feel valued.

With 80% of consumers more likely to do business with a company that offers personalized experiences, and 78% stating that such communication makes them more willing to repurchase, it is clear that proactive, personalized engagement is crucial in today’s digital age.

2. Positive CX May Reduce Marketing Budget Waste

Anna also pointed out that it costs companies five times more to acquire a new customer than to engage an existing one. This principle holds true today. While attracting new customers is important, catering to the needs of existing customers is arguably even more crucial.

In fact, with 65% of a company’s business coming from existing customers, and loyal customers spending 67% more than new ones, it is essential that companies allocate sufficient marketing budgets toward delighting customers they have already built relationships with to see higher returns on investment.

How Can Companies Re-Engage Their Forgotten Customers?

1. Data Utilization

As Anna mentioned, many companies have amassed significant amounts of customer data but use it reactively. To truly engage customers, businesses must leverage this data proactively.

Taking Netflix as an example, they utilize historical customer behavior to predict viewing preferences and recommend content. This not only boosts engagement, but also makes customers feel understood, convincing them to remain loyal.

By analyzing customer data, companies can gain insights into individual preferences and needs. Predictive analytics can help anticipate customer behavior, allowing businesses to surprise and delight customers with personalized offers and experiences they didn’t know they wanted.

2. Personalization

With the growth of artificial intelligence (AI), personalization is now more achievable than ever. Companies that utilize AI to deliver personalized experiences at scale are better positioned for success.

Similar to the Netflix example, Amazon also leverages machine learning and AI to continuously refine its product suggestions based on user interactions.

Such real-time AI helps tailor future interactions, making customers feel more valued and understood with every interaction.

3. Gamification

Gamification has emerged as a powerful tool to enhance customer engagement. By incorporating game-like elements into the customer experience, companies can make interactions fun, engaging, and memorable.

Duolingo, for example, utilizes quizzes, rewards, and leaderboards to make language learning enjoyable. These interactive features not only keep customers engaged but also foster a sense of loyalty.

4. Omnichannel Offerings

Offering seamless, omnichannel experiences can also set your business apart. Omnichannel refers to providing a consistent shopping experience across all channels, including in-store, mobile, and online.For example, Singapore Airlines, through its partnership with AOE-integrated airports and shopping malls, allows customers to easily shop, pre-book, enhance in-flight options, and earn loyalty points in real-time. With 70% of all purchase decisions made at the Zero Moment of Truth (ZMOT) stage, it is crucial for businesses to be present online when customers are researching products.

In fact, according to Adobe, companies with the strongest omnichannel customer engagement strategies enjoy a 10% year-over-year growth, a 10% increase in average order value, and a 25% increase in close rates.

Conclusion

The Forgotten Customer remains a pressing issue for businesses today. To overcome this challenge, companies must prioritize proactive engagement by leveraging data, personalization, gamification, and omnichannel offerings to create exceptional customer experiences. By focusing on delighting existing customers, businesses can drive loyalty, increase revenue, and build lasting relationships that stand the test of time.

The Perx Advantage

Are you still neglecting your loyal customers? Take action by evaluating your customer engagement strategies and adopting a proactive approach to create exceptional experiences that drive loyalty and growth.

With versatile gamification features, AI-powered campaigns, predictive analytics, and a plethora of adaptive rewards, Perx could be your trusted partner!

Book a demo today to see how Perx can help you strengthen relationships with your existing customers.