No matter what type of business you run, you work only to have many paying customers. If there is nobody to serve, there is no business too. Once you have a significant and loyal customer base and your business is functioning well, customers can give you the required impetus in other areas. They can provide you excellent feedback that will help you to launch enhanced versions of existing products. Moreover, customers are the best source for extracting information about your competitors. You can gauge your competitors’ products and services’ benefits and drawbacks and can use the same to improve your offerings. When you listen to your customers properly, you know what they want and appreciate. You know what they are searching for. And always remember that acquiring new customers is about five times more expensive than keeping the existing ones. So, if you listen to your customers, you will create a significant and loyal customer base. The most prominent benefit of having a loyal customer base is that they have a higher lifetime value. They also spread good word-of-mouth and bring numerous referrals.
This article sheds light on the top 5 reasons to actively listen to your customers.
1. You will build a big and loyal customer base
As described above, the advantage of having a significant and loyal customer base is that they have a higher lifetime value. They buy the company’s products and subscribe to their services now and then. Moreover, they become advocates for the company and don’t hesitate to tell you about your products’ benefits and drawbacks. They spread the right word about your company among their friends, colleagues, and peers, bringing you even more customers. Loyal customers don’t forget to share your company’s offerings on social media, and, in some cases, the posts go viral. If you develop the ability to listen to your customers actively, you will go way forward in building an influential, robust, and stable customer base.
2. You will know what your customers want and appreciate
Elephant ears can help you to pay attention to what your customers want and what they appreciate. Suppose you sell cycles, and you get to know that your customers wish a gear system that helps them cycle faster without spending much energy. After a few days, you come to know that your customers would appreciate a rear light that they can blink while taking a sharp turn on the road. By listening to customers, you can provide them exactly what they want. If you want to build long-lasting and robust customer relationships, then you need to develop the ability to listen to your customers actively.
3. You will get to know the benefits and drawbacks of your competitor’s offerings
Your competitors are always searching for ways to steal your customers. And the best way to do it is by listening to what your clients have to say. Always remember that customers are your biggest advocates. They know everything about your offerings — the benefits and the drawbacks — and are happy to share it with anyone ready to listen to them. So it better be you. Customers can reveal the secret recipe of your competitor’s offerings that will help you stay ahead. You can install similar features in your offerings and sell them for a better price. You can learn about your drawbacks and remove them at the earliest.
4. You will lose customers if you don’t listen to them
Companies that don’t listen to their customer’s wants often lose them to their competitors. The famous proverb “Customer is God” is as real as it sounds. Remember that the customers’ memory is fragile, and they quickly forget about the benefits they got by using your products in the past. If you don’t listen to their suggestions, they won’t hesitate to shift their loyalty to another company that pays heed to their needs and wants. And once your customer loses confidence in you, you will lose dominance in your industry and be expunged out. You will also risk losing your market secrets as your customers won’t think twice before telling them to your competitor.
5. You will develop cross-selling and up-selling opportunities
One of the most incredible benefits of listening to your customers’ needs is that you get to cross-sell and up-sell products that weren’t possible earlier. Suppose you are an electronics product manufacturer who sells first-class printers. You realize that your customers buy printers from you, but they prefer buying ink cartridges from the local store. You can integrate printers with IoT technology. It will allow the printer to send a notification to your CRM software before your customer’s ink cartridges are going to run dry. Moreover, the CRM software will notify you if the printer shows signs of becoming dysfunctional. It will allow you to provide world-class support service to your customers even before the printer breaks down, which will encourage them to stay loyal to you for a long time.
Listening to your customers is essential for running your business smoothly. They provide you valuable information that can help you gauge the market needs and brainstorm effective strategies. In the digital age we live in, it’s challenging to keep your customers loyal. Active listening is one thing that you can practice to keep yourself abreast of customer needs and offer them products and services that they wouldn’t hesitate to pay for. The five reasons mentioned in this article will allow you to actively listen to your customers and create strategies keeping their needs and wants in your mind.