How much money do you think your company is losing due to low customer retention rates? In a 2016 report, the White House Office of Consumer Affairs announced that: “It is 6-7 times more costly to attract a new customer than it is to retain an existing customer.” This failure to retain is a significant profit leak for many mid sized and large organizations. Is your company overspending on business acquisition and leaving profit on the table?
Failing to map customer experiences is a major flaw in many e-commerce strategies. For many reasons, business owners and managers cling to outdated, inefficient processes. Your aim should be to use every tool available to track customer interactions. According to the Harvard Business Review increasing your retention rate by 5 percent can lead to a thirty-five to ninety-five percent increase in profits. Mapping your customer experience will help you keep prior customers and maximize profitability.
We interviewed over a hundred marketing professionals and product managers. Our interviewees were from many different mid-sized to large companies. We asked them questions about their marketing process. One concept seemed to come up time and time again. Many of the professionals attributed great importance to successful customer interactions.
Marketers should use customer mapping to identify possible weaknesses and potential growth points. Once defined, these insights will provide a means of maximizing your conversion rates. Customer experience mapping tools allow marketers to track visitor behavior. They also help categorize and analyze a whole host of data from your site.
Acquiring customers is not cheap. One of the most important numbers for a business is their CAC or customer acquisition cost. Inefficient businesses fail to capitalize on repeat customer interactions. This is often a secondary result of focusing too much on the initial acquisition. In the long term, this excessive focus will diminish your profitability.
Striking a balance between these two facets of customer acquisition is not easy. Improving this side of your business is crucial to remain competitive. Even if the ROI for all your ad campaigns is positive right now, revenue multiplication is still a plus.
What is the Solution?
Separate audiences by characteristics.
Breaking up your audience allows you to determine their wants and needs. Useful customer interaction paths will vary between demographic groups. Use mapping software to create a journey map that highlights every key customer interaction. These characteristics will also prove invaluable when developing marketing plans. Each demo is different, so appealing to their pain points is important if you want to have a high conversion rate.
Find conversion potential by using journey maps.
Journey maps help you determine which customer interactions are ripe for conversion. This allows you to pinpoint specific groups to target for repeat business. Using a map to evaluate website performance metrics will improve your conversion rates. 87 percent of customers expect a seamless customer service experience- journey maps help you to ensure that experience is a positive one.
Measure the success of marketing efforts.
Tracking which efforts are failing and succeeding is essential. Mapping tools can help you learn which experiments are reaching their benchmarks. The app can also help weed out unsuccessful campaigns. This helps to grow your customer base. It also helps to penetrate your message deeper into your target audience.
Acquire, convert and keep more customers.
Customer experience mapping helps identify acquisition sources that have the highest user engagement. The app also shows the acquisition sources with the highest lifetime values. This data will help you convert more browsers to buyers. Your goal should be to find a way to satisfy the expectations of most customers. You may not be able to please everyone, but you should try.
Taking full advantage of customer experience mapping will help your e-commerce business to become more profitable. The app is a growth acceleration tool that works in three essential ways. Detailed maps allow marketers to visualize their customer journey maps. It also helps them gather relevant customer ideas. The marketing campaign data that they provide help avoid unprofitable paths. At the same time, it enables you to capitalize on the most effective strategies.
Dimension Data reports that 84 percent of businesses that use CX mapping show increased profits. Tracking customer interactions with your company will help you to understand their needs. Mapping your customer experience will help you meet and exceed conversion goals.