Strategies to Improve Customer Retention
Acquiring customers with a low retention rate is like pouring water in a bucket full of holes, you will waste a lot of resources and never see the results. Companies in their early stages are more likely to face this situation. Usually, startups focus most of the resources into acquiring new customers, however, this should not happen at the expense of the service that existing customers receive. Acquiring a new customer is a lot more expensive than keeping an existing one. Most sources agree that it costs 4 to 10 times more to acquire a new customer than it does to keep an existing one. For this reason, improving your customer retention rate should be a top priority.
Here we are sharing five strategies that any business can implement now to improve customer retention:
Improve the customer experience:
This is by far, the most important one. Customers who have had a bad experience with your business will most likely not comeback. The way to avoid this from happening is by creating the best customer experience- offering attentiveness, recognition, personalization, and appreciation. A system to measure improvements in the quality of customer service should also be implemented. And of course, this involves...
...defining specific ways to measure customer service:
It is important to develop and track KPIs to track the quality of customer service. You can record calls and use surveys to keep track of the overall satisfaction of users. The bottom line is your customer retention rate, this is the only way you will truly know if your customers are satisfied with your product. Offering a customer service is a basic approach to retain customers. However if you want to take a proactive approach, you should focus on...
...building relationships with them:
Try creating one on one connections with these customers. This may involve making a friendly phone call to ask the customer about how he or she feels about the product, the service, and/or experience etc. Using a blog and social media to interact with them also represents a good opportunity. Don't always keep it corporate, share what your business stands for and the values that your business defends. This represents a great opportunity for you, since customers are more likely to stick with your business when they have common values. It is better to maintain and invest in these relationships before you reach a point where the customer doesn't want to hear about you anymore. You can also use this proactive approach to resolving issues by...
...implementing anticipatory services:
Instead of waiting for a problem to happen, try to resolve or manage the problem ahead of time. If you foresee an issue about to arise, send your customers a notification explaining the issue. By doing this, you can avoid any negative surprises. If you incorporate these strategies yet still find yourself in a situation involving unhappy customers, make sure you…
...have a good complaint system:
Make your customers issues, your issues. Customers should have an easy way to file a complaint and they should feel like their voices are being heard. Showing them that you want to improve the relationship is the first step in making them trust your business again. Research shows that 68% of customers will leave because they will be dissatisfied with the service at some point- so being able to retain them can have significant impact on your sales.