Top lenders and customers availing the benefits of a lease based business are not just into borrowing cash, but making money as well. The finance client experiences are evolving into one of the most preferred channels for carving out a distinct customer-company productive working relationship. Customer retention ideas for lease based businesses are gaining ground. The duration of the loan period increases and monetary benefits accrue when companies engage customers over and above the loan and/or lease life. Many brands are becoming aware that exceptional email open-rates signal a rise in client retention, and lease based businesses are no exception to this rule.
#1 Engaging Customers: Loyalty at the Core of Customer Retention
Each lease based company that excels is known for its unique customer experience. ChannelNet, for example, has 12 m customer sites for top 6 auto finance firms. The group uses personal URLs or client microsites to span the entire range of lifestyle interaction and communication.
#2 High Penetration on Service Contracts
Many strategies have developed across the history of lease based businesses such as auto finance companies, to positively impact customer retention. Consumer loyalty programs with point reward systems and discount prices in the case of certain dealerships have proved successful. Discount coupons for the next purchase have also proved successful.
To keep customers from going to rivals and ensure that they keep buying back from you repeatedly, you need to ensure high penetration on your service contracts for products on lease offered. For example, an auto lease company needs to maintain a penetration rate of 50% on service agreements and parts to successfully run a business. Ensure your metrics measure the correct outcome. For example, staff should be compensated based on how well they retain customers. Your compensation programs should reflect a commitment to the organisational outcomes.
#3 A Welcoming and Inviting Attitude Towards Customers
Customers are, according to research by Pathwwway Gamble, five times more certain to engage with lease based businesses within the first hundred days than any other period in time. The dialogue needs to be opened keeping the right brand narrative and tone in mind. Regardless of whether the brand wants to sell, the relationship must begin on the right note to be a resounding success. A friendly discount on current services or a sweet deal thrown in can make all the difference.
#4 Make User Experience Positive
As far as online self servicing is concerned, the top rung lenders make the user experience as smooth and seamless as possible. The touch-points in the product lifecycle or consumer service decisions need to be hassle-free. Customers can only be retained if they are able to get the quality services they seek. Clients prefer it when they find information relevant to them quickly such as loan or lease-closure date and payoff information. This is one of the leading retention ideas followed by top lending and leasing institutions in sectors such as auto finance, financial lending, and home lease agreements.
#5 Team Work Matters
Brands integrating online services with customer-service centers and dealers score higher when it comes to clients. Integrated systems for tracking customer behaviour such as their intention to purchase their lease vehicle are essential. Reach out proactively to consumers and you will have gained their attention and sustained their interest. Customers need to be understood so that the lease based business benefits from such retention ideas and prospers.
#6 Have Communication Systems in Place
Great communication matters in any relationship including client-company relationships and it must be mutual. Best in class practices for brands that want to enhance their retention programs, as far as lease companies go, incorporate communication. Well times, targeted communication that spans the entire lifecycle from consideration to buying, use and repurchasing of the leased item/service can be an important factor in the success of customer retention.
#7 The Perfect Turn-In Experience Matters
The end or closing date of the lease is the most important time for client retention. While vehicle owners may have experienced satisfaction with the purchase, a poor turning in experience can cause the relationship to go south. It is true that from a lease based company to any product/service oriented business, a solutions provider is only as efficient and productive as its previous success. Nowadays, lease based companies provide lease-end educational courses. There are even videos on lease end purchases, processes, repair calculators and options to buy mileage for auto finance companies. Lease based businesses that succeed in the case of client retention have customers in the know about exactly what the outcome will be when they turn in products towards the close of the lease.
#8 Mass Marketing Tactics Don’t Work, Personalisation Does
Top finance lenders and lease companies are even including marketing automation to create an experience that is personally relevant giving customers experience and overall user control demanded. Research by Pathwwway Gamble has found the Millennials are not oriented towards loyalty to particular brands or lease companies. Rejecting mass market customer retention programmes, they prefer to connect over social media and personal experience. Leverage your social media tool for personalising consumer experience, leading to retention and makes sense as well as money.
Customer retention in the age of fast information, massive competition and the growth of lease based businesses in sectors like real estate, automotive finance and financial lending have made it essential for businesses in this sector to think ahead of the curve when it comes to retaining customers. The essence of the customer retention process is eventually the same, no matter which industry you consider. At the end of the day customers want quality products and services. At the heart of effective retention is the value given to the customer and the priority accorded to their needs, wants, preferences and desires.
Essentially, this is what forms the base of a good retention strategy. For lease linked businesses that want to grow, customer retention is critical. It costs much more to acquire customers rather than retain them, and securing the purchase at the end of a lease through a rewarding client relationship can have a lot of benefits and translate into the ultimate win-win outcome.