Growing With What You Already Have: The Magic of Caring for Your Existing Customers

Yesterday, while browsing the web looking for customer experience trends, I came across an article that really caught my eye. The concept of “experience-driven growth” resonated profoundly with me, and made me think about how much we sometimes underestimate what we already have: our current customers.

What you already have is enough*

In our quest to grow and expand, it's easy to fall into the trap of thinking that the only path to success is acquiring new customers. But what if the key to sustainable growth lies in valuing and improving the customer experience we already have? A McKinsey study that caught my attention reveals that up to 80% of the value generated by the most successful companies comes from unlocking new opportunities with their existing customers. This made me reflect on how sometimes, instead of looking outside, we should focus on nourishing what we already have.

Listen and act: The case of a telephone phone

An example mentioned in the article was that of a telecommunications company that was losing customers to competitors. Instead of following the traditional path of trying to attract new customers with eye-catching offers, they decided to change their approach and really listen to their current customers. This included removing restrictive contracts, offering improvements at any time, and making promotions for new customers available to old ones as well. The result? Customer satisfaction increased significantly, the attrition rate dropped by 75%, and within a few years, the company's revenues nearly doubled. This example demonstrates the power of focusing on customer experience as an engine of growth.

The key is in the experience†

What this approach proposes is simple but powerful: if you make your current customers feel valued and offer them an exceptional experience, not only will they stay with you, but they will be willing to spend more. This isn't just a theory; McKinsey found that companies that lead in customer experience achieved more than twice as much revenue growth as those that didn't focus on it.↑

What are you waiting for to focus on your customer experience?

This concept of “experience-driven growth” not only seemed interesting to me, but also incredibly relevant to what we do at woku. In a world where acquiring new customers is increasingly costly and competitive, focusing on improving the experience of those who already trust us could be the key to sustainable growth.

So, if you've ever wondered how you can grow your business without relying so much on attracting new customers, this approach might be just what you need. I found it yesterday, while looking for trends in customer experience, and I found it so relevant that I wanted to share it with you.

References

• Bough, V., Ehrlich, O., Fanderl, H., & Schiff, R. (2023, March 23). Experience-LED growth: A new way to create value. McKinsey & Company. https://www.mckinsey.com/capabilities/growth-marketing-and-sales/our-insights/experience-led-growth-a-new-way-to-create-value ÷