Most stores recognizes that positive customer experiences are key to creating long-lasting relationships and returning customers, but many are still struggling when trying to connect customer satisfaction to ROI. And, well, what evidence do we have that great customer experiences creates high ROI? And where does it actually result in a higher revenue?

Let’s look at some examples where investing in customer experience leads to increased conversions and hit rate, which in turn leads to profit for your stores.

The value of repeat customers

What’s the goal of every customer interaction? To satisfy the need of your customer. And what does that lead to? It makes them want to buy from you again! The first evidence of the importance of great customer experiences lies in the power in repeat customers. If your customer receives value during a service interaction, they are 82% more likely to buy more or comeback instead of switching to a competitor.

And repeat customers are a great source of ROI for your store.

Increased sales

The more often a customer visits your store, the more trust they will have in your brand. And the more trust, the more likely they are to buy.

Studies say that returning customers are 50% more likely to buy a new product and they spend 31% more than new customers. This will of course have a positive impact on your conversion rates, and also your hit rate, since it’s easier to sell to customer that already trust you.

Save acquisition costs

When measuring ROI, it’s important to not only look at increased cash flow, you also need to look at where you can cut costs. And one of the most expensive processes for retail stores is acquiring new customers.

The marketing needed, as well as the expertise and time needed from the frontline staff, takes a big chunk out of your precious budget. In fact, acquiring a new customer can cost more than 5 times more than retaining an existing one.

If you spent more money on retaining customers through your customer interactions, you might learn that you don’t have to spend that much energy or money chasing new customers. The value of repeat customers is obvious.

Word of mouth

Paying for an ad with the purpose of attracting new customers is expensive, and you’ll need to build trust in a short amount of time. But when a customer has had a great experience in your store, they will probably talk about it with their friends. And we put more trust into a friend’s recommendation than an ad. A lot more actually. According to a Nielsen study, 88% of consumers trust recommendations from friends and family over traditional advertising.

This means that the more focus you put into creating positive customer experiences, the less you have to put into creating the perfect ads. Your customers will do the work for you, as long as your frontline staff fulfil their needs and put a few smiles on their faces.

The first step towards world class customer experiences

Hopefully by now, you’ve realized the power customer experience have on ROI and you’ve been inspired to invest more into creating great customer experiences in your stores. Maybe you want to train your staff to excel at customer service, collect real time feedback or help your employees become more engaged in their interactions?

These are all areas where Maze excels. Maze is a training app for frontline staff that provides all tools necessary to create world class customer experiences.