An average business loses 20 percent of customers each year by failing to have a customer retention plan in place. In certain industries, the leakage is as high as 80 percent. The cost is massive in more ways than one. Apart from profits, companies also lose out on growth. If a business retains a higher percent of its customers, there will be a greater net growth in customers annually. This will further compound as the years pass by. Failing businesses that need to succeed must have a customer retention plan in place. Even a tiny change in client retention cascades across the business system and multiplies across time. Long term profits and growth are further compromised on.
Simple customer retention strategies cost little or nothing at all to implement and yield multiple results. Each customer retention strategy from Pathwwway Panama listed here will massively impact the business in positive ways and plot your path onto an upward growth trajectory.
#1 Lower Customer Attrition
Every business loses customers , but few measure or understand how many of their customers defect. Most businesses spend a lot of time and expense building customer relationships without realising that customer retention costs 5 times less than customer acquisition cost. Once the sale has been made, most businesses forget about customer retention. But the easiest way to grow your business is to lower customer churn. Gain double or treble the growth once leakage has been stopped.
#2 Sell Again
Many people do an excellent job of making the initial sale but this is where complacency sets in. Selling is only the start of a customer relationship. To lock in repeated sales and referrals is what makes for a successful business. You need to strike when the timing is right and evoke a deep, meaningful customer connect to enable clients to be convinced enough to make another purchase.
#3 Monitor Receptive Customers
Dedicating resources to garnering new customers is useless when 25 to as high as 60 percent of existing customers will be able to respond positively if approached the correct way to make a sale. Reactivation of customers who know the product is the quickest and easiest way to raise revenues. Re-contacting and reminding customers or even retargeting them can yield dividends and multiple profits.
#4 Chart the Communication
Don’t lose out on customers. Build a positive relationship and you will have the optimal calender of communications. You need to follow a programmed progression of events, phone calls, letters, thank you notes, follow-ups, magic and wow moments, special offers and cards as well as notes with the personal touch. You need to communicate frequently and constantly at defined points in the pre, sales and post sales process. Customers respond to this in a positive way because they feel valued and important. Keeping clients informed, offering post-purchase doubts and reinforcing business makes them want to return repeatedly.
#5 Exceptional Customer Care
The never-ending aim for excellence is to keep customers satisfied so that they act as brand ambassadors or advocates. The product or service you provide can only become exceptional if high levels of service are delivered to each and every client. Key facets include dedication to customer care. Surpassing expectations and moving past the call of duty, no passing the buck, consistency on time delivery and zero defects, error-free processes of delivering ensure customers remain satisfied. Poor service will only drive people to competitors.
#6 The Social Element: Interpersonal Skills Count
A powerful system of interpersonal skill inculcation and management can lead to positive interaction with customers, and make them feel important and worthwhile. The result is a better, stronger, warmer, more trusting relationship and the establishment of deeper bonds with customers.
#7 Maintain Product/Service Integrity
Long term success stems from a customer retention program that does not take ethical shortcuts when it comes to consistency and service delivery. The design build, quality, serviceability and reliability of the service or product should not be below par. Service integrity is demonstrated through the conversion of complaints into compliments. Attend to customer concerns and maintain high standards of excellence when it comes to product or service delivery for the best results.
#8 Assess Lifetime Value
Rather than opting for one off profit, one should work on making good sales which take the bigger picture into account. Total aggregate profit is the lifetime of a average customer’s business relationship with you. The critical importance of taking good care of customers is important.
#9 Innovation is a Must
With rising customer acquisition costs, a proactive approach is a must for retaining clients. A majority of customers unhappy with the product or service they receive leave a company and many decide to choose competitors. Businesses that stay behind in the race for innovation lose their customers fast and make rapid losses too.
#10 Establish Market Authority
No matter which industry your business operates in, if you are an expert in a particular field, you are more likely to retain customers. Establishing market authority is the key to leading the race in an ultra competitive ecosystem.
#11 Build Trust
Essentially, you can only do business with people you trust. Whether it is Apple in the IT industry or Levis in the apparel retail sector, each of the established brands stand for excellent standards of quality and exceptional value for the customer. You are only as effective and impactful as can be, if you can foster a trust in clients or customers that spending on your products or services is a wise investment. The focus should be on building mutual trust and creating a sense of deep commitment to excellent standards of service and product delivery. A well deserved reputation for excellence stems from dedication to over delivering and surpassing expectations. Your product or service needs to withstand the test, and establish its supremacy in the market.
The “build it and they’ll come” approach works no more. From loyalty marketing to a well established Pathwwway Panama customer retention plan, all aspects need to be looked into, for a business to grow, prosper and develop. If your business is facing losses, it’s time to work on customer retention as this is the best way you can bring about a transformation and propel your company on the path to growth.