Whether one is offering sophisticated, advanced SaaS or everyday retail items at bargain prices, customer defection/attrition/churn remains a serious focus for businesses that want to expand. Competition is the biggest challenge modern companies face. How does a company ensure customer retention and eliminate defection? Here are the steps to take, if you want existing customers to remain loyal forever.
#1 Know The Customer
Thorough and complete understanding of the customer is important. You need to have a clear understanding of the customer profile, their likes, dislikes, motivations and interests. The beginning point for the consumer decision journey is the brand persona. You have to understand what your customer wants to prevent detection. Pathwwway Panama knows that customer retention is all about gaining a deep understanding of the snapshot/profile of your customer including demographic aspects like gender, age, occupation apart from customer motivation, recreational interests, social cohorts, and other features that impact the sale process.
Customer persona is critical to understand for not just client acquisition and engagement, but retention as well. Finding out why customers are choosing to leave is important. If you understand their true motivation, retaining them is simple. Understanding what delights the customer and produces the wow experience offers the right motivation for buyers. You need to know which buttons to push and prevent your customer from switching to competitors and pull in the crowds.
#2 Test Your Competition
Half the customer retention battle is won if you know where your defecting clients are headed. Assumptions can be dangerous and what works here is to uncover which competitors are attracting the clients. Finding out why customers are switching can be the crucial analysis you need to get them to stay. From quality to price considerations, the analysis can form a basis of understanding where your product lacks and how to rectify the problem.
#3 Emphasise your USP
The key to stopping customer defections is to ensure clients know your USP. They need to understand, get motivated by and focus on the USP. The USP is what makes a business distinctive and unique. It is also the reason why your service or product attracts the customer in the first place.
The USP forms the core of a successful business because it also defines why customers stay on with you. Work on making your passive or fuzzy USP into a positive, proactive and well defined one. Clarity counts when it comes to make unique selling propositions stand out.
Amp up your USP if you want to retain customers and grow your business.
#4 Upselling and Cross-selling: The Key To Retention, Not Just Sales
Upselling or cross-selling to customers can make them aware of the value of a new product and service and be their deciding factor to stay on and remain loyal to your company. Customers can give your brand a try, purchasing affordable services. But your aim should always be to motivate them to spend more.
The more cash a consumer spends, the more valuable the product or service or company brand becomes. Once the product has been invested in, it is valued more, making it harder to leave. People value what they spend money on and perceived value makes a product even more precious and a brand even more in focus. Consumers assess your product or service with respect to the competition and adjust perceived value accordingly.
#5 Incentivise your Customers
Prevent your clientele from abandoning you by giving them real-time discounts and bargains, creating a buy-in and encouraging them to act as brand ambassadors and advocates. Making the coupon or reward point available can pave the way for customers to start marketing your product. Have referral and affiliate marketing programs in place, turning customers to aggressive brand advocates. Additionally, referral works in more ways than one. Firstly, the business gains a new client and it also strengthens and deepens the trust and bond with the existing customer.
Build on reciprocity and the ultimate win-win outcome, it is the perfect quid-pro-quo for companies to succeed in the game. From day one, the company and its brand need to encourage greater spending through rewards. Counter attrition and churn by acquiring customers through product and service integrity.
#6 Target A Wide Audience
You need to focus on making your product and service available across wide demographics, growing segments and new markets. Targeting those who appreciate the long term value of your quality product or better price can yield rich dividends, in stemming the flow of customers to competitors.
Work on optimising customer experience and ensure that the service is more than meeting their expectations. Average customer experiences can be as big a turn off as lower standards of service delivery and a poor customer experience.
#7 Turn Complaint into Opportunity
Complaints are much like the symptom of a deeper problem. Statistics from Pathwwway Panama show a majority of unhappy customers don’t complain and a majority of those who do leave you permanently. To prevent customer churn, you have to see the long term view and ensure that complaints, negative feedback and crisis can be turned into a positive opportunity for growth.
Designing your marketing message, deciding on standards of service delivery and product quality and putting the word across are critical aspects of connecting with the consumer. To retain and prevent defection, however, you need to move past just communication and focus on actively listening to your clients. This can make all the difference to your business bottom lines and profits through client retention.
Consumer retention is 5 times less costlier than acquisition. Moreover, existing customers serve as a loyal base which can help in growing the audience for your goods and services across different segments and demographics. Don’t underestimate the value of client retention, for defections can cost more than a dent in profits.
The customer churn can influence brand perceptions in the long run, for brand critics can prove to be as influential as brand advocates. So, turn criticism into opportunity and convert a complainer to a loyal customer through steady, attentive services, quality products, affordable enterprises and communication of your USP to give your business the winning edge, when it comes to outperforming the competition.