by daniel buchmann
why emotionally connected customers are more valuable
Many companies ask themselves how they can be sure to satisfy their customers to create the best possible customer experience. But actually another question should be the focus of attention: How do I manage to bind my customers emotionally to the company? The answer is easy: by creating positive emotions connected to the company and the brand. So far so good. But how can this be done in practice?
Create positive emotions connected to your brand
create emotional touchpoints
Customers undergo positive and negative emotions during the course of their customer journeys. The first contact with the brand, like entering a showroom or visiting the company website, is usually already the crucial one. Here it is decided whether the company manages to convince the customer of the brand’s appearance and image even before the customer comes into contact with the actual product.
A large part of the customer experience is shaped by emotions. A customer must feel valued, respected and self-confident. Conversely, emotions such as frustration, disappointment, and annoyance should, of course, be avoided. A good customer experience strategy makes it possible to create experiences where positive emotions outweigh negative ones.
Simplified illustration of a customer journey and different kinds of emotions when buying a car
know your customers' expectations
In order to achieve this, companies must use the basic motivations of their customers, such as the desire for freedom, security or exclusivity, to meet the unspoken emotional needs of their customers at the respective touchpoints. Touchpoints with human contact are better suited for this than others, as the corresponding emotions can be directly influenced here. In the first step, companies should concentrate on the moments that matter. These are the moments that have a direct and long-lasting influence on a customer’s positive or negative perception of the brand and thus influence loyalty in the long term.
A study by Harvard Business Research has shown that customers who are completely emotionally connected to the brand are 52% more valuable from the point of view of customer lifetime value than very satisfied customers. They buy more, visit the point of sale more often, are more receptive to marketing communication and are less price-sensitive. Customers who are completely emotionally connected to the brand bring various benefits, ranging from increased loyalty to increased cross-selling and up-selling potential and thus additional revenue per customer.
The emotionalization of retail touchpoints requires a deep understanding of the different customer groups as well as their underlying motivations. It also requires a lot of work, which in the end pays off in the form of competitive advantages and sales growth.
This article is also pulished on LinkedIn.
In the second part of this article, “Emotions along the Customer Journey – How to identify and trigger emotions for higher customer satisfaction", we explain which steps are necessary for a company to emotionalize its touchpoints.
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Patrick Pfalzgraf heads the consulting division at rpc with a focus on organization & operations as well as the Financial Industries division. He is a proven industry expert for the financial industry as well as med-tech with a focus on transformation, growth, sales and operational excellence.