Brands spend so much time hunting for new customers, but what if the key to serious growth is already right in front of them? Turns out, focusing on improving the experiences of existing customers can be incredibly powerful.
It's way harder to replace a lost customer than to keep a happy one. McKinsey & Company says brands might need three new customers to make up for losing just one! While imagine how much easier things are when 80% of a brand's growth comes from the people who already love it. They trust the brand, they want to keep buying – the brand just needs to give them a reason to!
McKinsey calls this strategy "experience-led growth." It means setting a financial goal and then making the customer experience so great that the brand reaches it. The best place to start is with listening. Companies that lead in growth understand their customers on a deep level. They know what makes them tick. They pay attention to analytics, and focus on long-term wins, not just quick profits.
McKinsey breakdowns the experience-led growth strategy in three pillars:
◼ Set a bold goal. Don't be afraid to dream big. How would an incredible customer experience boost sales? Loyalty? Set targets for what that looks like.
◼ Transform the business. Dig into what frustrates customers. Are there hiccups with ordering? Delivery issues? Map out their whole journey with the brand and fix the trouble spots. This might even mean creating new products or services!
◼ Enable change. This is about getting everyone on board. Train employees to be customer-obsessed. Give them the tools and skills they need to provide amazing service and loyalty rewards.
The heart of it all is understanding that customer experience isn't just about being nice – it's about unlocking serious growth for brands. Brands need vision to see where they want to go, the courage to transform how they do business, and a team ready to make it happen. Read the full original article