Focusing customer service strategies could generate higher returns

Focusing customer service strategies could generate higher returns

Successful marketing campaigns should be tailored to a specific audience. This allows the message to be focused and relevant, thereby increasing response rates. However, firms often fail to apply the same customized strategy to customer service, opting instead for a one-size-fits-all approach.

Young customers show less satisfaction
Several recent surveys suggest that organizations can see better results by adapting their customer service strategies to the unique needs of their audience. A study by J.D. Power and Associates found that young consumers, aged 18 to 24, are more likely to share their experiences through social media than other groups and are also more dissatisfied with the level of service they receive.

"Younger shoppers, while being driven primarily by price, consider the experiences shared by others more than do consumers in any other age group," said Sara Wong Hilton, director at J.D. Power and Associates. "As their brand opinions are still being formed, they rely on input from both people they trust and those who have already used that same online retailer."

The survey gave online shoppers between 18 and 24 a satisfaction score of 795, compared to the average score of 812. Indicating that businesses are lacking the ability to provide younger consumers with the level of services they want. Companies that take the time to focus their CEM strategies toward a younger audience may see a boost to their customer retention scores and brand reputation.

Customers show channel preference for services
Customer data analysis will become essential to CEM Strategies, according to Destination CRM. Just as in marketing efforts, firms that are able to identify trends within the market will be able to provide the level of service each demographic prefers, which may be contrary to traditional views. A study by the financial research and consulting firm Celent found that young buyers tend to prefer face-to-face interactions when it comes to resolving complex problems. This could be through live chat programs, video conversation or even simple phone calls. If consumers are unable to resolve issues themselves, they want a quick resolution from the company.

The same survey revealed that tech-savvy customers were actually less likely to take advantage of smartphone apps to resolve issues than clients who consider themselves "somewhat" knowledgeable about technology. The report suggests that businesses should be working to simplify technology for a less knowledgeable audience. By undertaking the right analysis and implementing segmented customer service strategies, firms may be able to increase the value of their CEM strategies and realize a higher return on investment.

Improving customer satisfaction and loyalty is a key driver for company growth, but organizations often fail to dedicate as much time, funding and support to customer retention as they do to other business operations. CEM consulting services, such as Omega Management Group Corp., provide the insight and expertise companies need to help ensure long-term growth and profitability.