Most small businesses do not have a way of measuring the return on their investment (ROI) in customer experience management initiatives, according to the latest research from software company Satmetrix. The study found that 64 percent of small and midsized businesses may be missing out on customer satisfaction and loyalty because they have no way of evaluating how effective their programs are.
Almost one out of five small businesses - 18 percent - have no way of measuring customer loyalty and approximately half say retention isn't the main priority anyway. Forty-eight percent said they would rather focus efforts on acquiring new customers.
Small businesses might benefit from developing a customer loyalty program to reward and acknowledge the people who support the company and could become advocates for its products and services, according to Intuit. For a program to be successful, owners need to set goals and evaluate them to see how well they are working or what might need to be fixed.
Local companies might have an advantage over their corporate counterparts when it comes to loyalty because it can be earned through personalized and relevant customer engagement, according to Business 2 Community. Delivering customized service might be easier for a small firm in which employees and managers can build relationships with customers.