We all know that retaining a client is less expensive than acquiring a new client. Yet, when it comes to increasing revenue, so many businesses revert to their default setting of trying to gain new customers and fail to take the time and effort to develop retention strategies that will address the challenges of retaining their existing customers.
According to a Bain & Company study, 60-80% of customers who described themselves as satisfied did not return to do more business. As technology changes and the buying habits of consumers evolve businesses need to ensure that their customer retention strategies help them to remain relevant and connected to their customers.
Although strategies for retention may vary, the following 4 core pillars are the foundations for effective customer retention:
Frequent customer surveys allow you to touch base with customers and get feedback on their experience. This feedback provides tremendous insights as to what works and what requires improvement. Done frequently over a period of time, these surveys, once analysed, provide sufficient data to establish a benchmark on service delivery and customer satisfaction.
They say the first sale is just the start of the business relationship. If you believe this to be true the role of your staff cannot be overlooked. Your staff are the front line of your brand and are key to creating the relationships with your customers. They deliver the brand experience and are able to influence consumers. Providing them with the right training, support, and incentives is essential in achieving a truly personalised customer service.
Today’s customers are inundated with marketing messages and as a result they have become less responsive to mass marketing messages. Your interaction needs to be considered, personal and relevant to them at a time that matters most. Knowing your customers, the frequency of their purchases and the need they are looking to address, helps you to plan what you wish to communicate, what method you intend to use to do this, and how often you feel it is necessary to engage with the client in this way to ensure optimal results are achieved.
Our greatest learnings come from our failures. Being willing to have difficult conversations, to take that feedback and turn it into an opportunity is a priceless skill that can only be crafted over time. The more you do it the easier it becomes and the more satisfied your customers will be.
With loyalty being a rare commodity, brands need to work harder to ensure that their customers choose to buy from them time and again. At FMI we work with our clients to develop and implement engaging and relevant retention strategies that deliver results. For more information on developing your Customer Retention strategy give Gavin Spencer a call on 496 3399 or email Gavin.Spencer@fmi.ie.