Blog Post Digital customer success is a great way to boost sales and increase the revenue of your company. Get help from Aidbase for a seamless customer experience.
Syed Hassan ZamanIn 2024, customer relationships are the only true defining factor of a business’s growth. A loyal customer is just a click away from leaving your website, getting frustrated by a slow response or an impersonal interaction.
The opposite can be true as well—a customer finding everything they need, but it’s not possible without implementing digital customer success strategies. These strategies help you understand customer preferences and behaviors in real time, allowing you to provide personalized and proactive support.
Let’s see how digital customer success paves the way for businesses to thrive.
Digital customer success means proactively using technology and data only to improve the overall customer experience.
It all comes down to using innovative strategies, digital tools, and technology to make sure customers enjoy a product as much as possible and have a positive experience.
This approach involves maximizing the use of digital channels, including social media, email, chatbots, customer hubs, websites, and customer relationship management (CRM) platforms. Through these channels, businesses interact with their customers, provide personalized help, and address issues before they escalate.
Workflow automation statistics
Credit: Kissflow
Every company wants to grow, and customer engagement is a key factor in achieving this goal.
If a customer leaves your website happily and comes back, the business is sorted because it has just gained a valuable recurring consumer. Digital customer success allows just that while making the whole process a bit easier.
There are three reasons businesses use digital customer success, as shown in the figure below:
Reasons business invest in CS experience
Credit: Superoffice
Customer Lifetime Value (CLTV) means the total revenue a business can expect from a single customer account.
The strength of a company's good customer success program lies in its CLTV. Through digital customer success, brands ensure a personalized experience for their clients – a key step that improves CLTV. A report found that personalization in sales leads to an increased ROI of 10-30%.
A basic CLTV model is shown below; it shows how only 20% of customers in a company contribute to the highest CLTV.
Customer lifetime value
Credit: Powerslides
Digital customer success helps businesses increase revenue by using technology (customer support tools, automated systems, Chatbots, etc.) to identify and act on opportunities for upselling and cross-selling.
Here's how it works:
One example is Amazon, which uses digital customer success tools to boost its firm's revenue through upselling and cross-selling. Through a proper CS strategy, Amazon has generated 35% of its revenue.
Amazon revenue through upselling
Credit: Dataaxlegenie
Customer Churn is a word that every business owner dreads. It means a reduction in customer conversion rate. Simply put, it shows how many customers stopped using your services or products after a specific time.
With digital customer success, business owners aim to reduce that churn and improve customer retention (the time a customer spends on your website).
According to research, with just a 5% increase in customer retention, a company’s profits can increase by 95%. Digital customer success helps with a proactive approach that anticipates customer needs and reduces risk factors, if any.
One example is Netflix, which uses this approach and has maintained a retention rate of 93% with a minimum churn rate of 2.3% compared to its competitors.
Netflix churn rate
Credit: HubSpot
Businesses can implement constructive digital customer success strategies in the following ways:
Use data analytics tools like CRM systems to identify customer behavior. Companies use this data, including consumer interaction and preferences, to personalize people's experiences and boost sales. According to Gartner, businesses that use customer behavior insights for their sales generate 15% more revenue.
Use automation tools to streamline repetitive tasks such as tracking customer inquiries, sending follow-up emails, or managing onboarding processes. According to McKinsey, businesses that employ automated activities see a rise in their productivity by 20 to 30%
For example, Zendesk provides automated ticketing systems to prioritize its customers and offer timely and efficient responses, which improves overall customer satisfaction.
We know that implementing personalized strategies for customers ultimately improves revenue and boosts a company's sales. But how can you do it? It works by segmenting your audience based on their purchase history, preferences, and behavior to deliver targeted offers for them.
Businesses that effectively target their audience see increased revenue from marketing campaigns. This ultimately leads to a personalized customer experience. Research by Epsilon says that 80% of customers make a purchase if a brand provides customized offers.
Purchase through personalized experiences
Credit: LinkedIn
Some of the most famous companies that have employed digital customer success are:
Amazon is a prime example of a company that has utilized digital customer success to its own advantage. Using advanced data analytics and machine learning algorithms, Amazon tracks customers' behaviors and browsing patterns to deliver product recommendations. The company generates the maximum amount of its revenue through upselling and cross-selling strategies.
Netflix is a popular media streaming software, and we know how it has made our lives more enjoyable while providing a customized user experience. You might have noted how you like one series, and the next day, similar genres pop up in your Netflix feed. That’s how Netflix suggests movies and TV shows based on users' viewing habits.
Hotspot is a leading CRM platform that uses automated solutions to provide a personalized customer experience. It guarantees that consumers get quick and appropriate help without any human involvement with typical tasks like email management and onboarding sequences. Using digital customer success tools, HubSpot has raised client expectations and revenue over time.
Spotify's digital custom success strategy centers on using data-driven personalization. It generates tailored playlists for users based on their music tastes. Based on these strategies, Spotify has been able to develop a 90% retention rate among its premium subscribers.
Digital customer success is not all flawless. Some challenges arise within the field, but proper solutions can fix them. Below are some pointers to keep in mind if you want to avoid common challenges.
Digital customer success is the key to drive business growth and generate handsome revenue. With the details and strategies mentioned above, you can also retain loyal customers while improving your customer service.
However, having the appropriate tools is equally important when implementing the right strategies to upgrade customer experience. That’s where Aidbase steps in. Aidbase uses AI support tools to streamline customer interactions. The AI chatbot customer service provides automated and smart responses to common consumer queries.
Trusted by multiple SaaS setups, eCommerce businesses, and agencies, Aidbase’s AI customer service solutions are everything you need to grow your business. Begin your journey with this platform today!
Digital customer success means using AI tools to improve a customer’s experience on your website. It aims to understand the customers’ behaviors to answer their queries and provide them with a personalized user experience. A proper CS strategy leads to increased revenue for a business.
A digital customer service manager makes the customer’s experience as smooth as it can be. They fix problems and develop a digital communication link between the customer and the company. This approach keeps the consumers happy while saving the company time and effort.
A user goes through 5 stages before purchasing a product from your website:
Following are the steps involved in building digital customer success:
