Three reasons why great CX is your best pull marketing tactic
The digital space has never held more potential for retailers — or been more competitive.
Businesses are flocking to eCommerce in record numbers, propelling global online sales to exceed $8.1 trillion by 2026, according to Shopify. But it's not all profit. According to Internet Retailing, over the past five years, there's also been a 60% increase in customer acquisition costs, and more than half of retailers surveyed in Commerce Next's 2022 Digital Trends & Investment Priorities report said those costs are a top risk to achieving their sales objectives.
Given the state of the market, it's easy to see why brands are turning to pull marketing — the process of drawing customers to a company's products and services by building and refining a marketable brand — to differentiate themselves from competitors.
Common pull marketing strategies include advertising, social media marketing, search engine optimization (SEO), blog posts and pursuing media coverage. The most essential pull marketing tactic, however, is also the most understated: a great customer experience (CX).
Three reasons why top-notch CX is the best pull marketing tactic for eCommerce brands
While costly targeted advertising campaigns can create short-term wins for brands, the reality is that these types of tactics aren't long-term profit drivers. Investing in a robust eCommerce customer experience strategy, however, is an integral part of building a brand that is capable of retaining customers, offering seamless buying experiences and encouraging word-of-mouth advertising. All of which can provide significant long-term benefits.
Here is a look at why focusing on creating an excellent customer experience is the best marketing tactic for eCommerce brands.
1. A team of all-star CX agents helps to build lasting relationships with customers
According to Shopify's 2023 Future of Commerce Trend report, at least 60% of consumers purchase from specific brands because of excellent customer service in the past.
And when you consider that 44% of consumers surveyed by TELUS International said that nothing — not even price, convenience or if it's a brand they truly like — excuses poor customer service, it is easy to understand why choosing the right people to support your customers can mean the difference between fostering loyalty and having your customers flock to a competitor.
Plus, given that it's up to seven times more expensive to acquire a new customer than to retain a current one, according to American Express, it's smart to fill your CX agent roster with proficient, patient and empathetic individuals with the tech know-how and soft skills to deliver the kind of service that keeps customers coming back.
2. Digital automation tools help ensure a smooth buying experience
Customer experience is more than just after-sales support. Rather, it's about making the full journey — browsing, research, comparison, selection, payment, delivery and, if necessary, return — as friction-free and connected across channels as possible.
Driving customers to your online platforms is one thing, optimizing them to make a sale is another, and it's a practice that can often be overlooked. Being smart about what you automate, and creating solid parameters around when a live agent should step in, can be a difference-maker for brands.
For example, chatbots can be leveraged to handle simple customer queries around the clock, freeing up your support team to address more nuanced requests. Additionally, proactive live chat prompts can positively nudge customers through the sales funnel. The tool has been known to reduce cart abandonment, which represents $18 billion in lost sales revenue every year, according to Shopify.
3. Elite customer support enhances word-of-mouth advertising
Strong brands attract more organic acquisition — and what's a more effective form of organic acquisition than word-of-mouth?
Word-of-mouth is a big part of pull marketing, and these days, it's driven by customer review sites and social media. One of the best ways to strengthen your brand in the eyes of your target audience is by enhancing your CX so customers will sing your praises and ultimately send others your way.
But if positive customer experiences generate good word-of-mouth, the inverse is true when it comes to negative experiences. For this reason, it's important to mitigate common customer support pet peeves, which, according to the aforementioned survey by TELUS International, include long wait times, numerous transfers to different agents and an inability to speak with a human agent at will (further proving that human connection is always key).
Marketing is all about telling your brand story, differentiating your product and inciting action. Customer service isn't so different. Investing in stand-out CX can enhance your existing pull marketing strategy and go a long way toward creating loyal customers for a better bottom line.