Tips for Customer Retention

Global B2B buy sell website: http://www.bytrade.com

 

Whether business is booming or suffering, ensuring that the business can keep its customers will mean that it will continue to exist. Retaining customers is an essential part of a successful company and it is the only way that a business will be able to grow. Many customer retention tips will relate to common courtesy and pleasantries that can be displayed in all aspects of life. As ruthless as some business areas can be, failing to treat customers well will not help the business. It should never be forgotten that where there is competition for business, there is choice for customers.

Here are 5 tips for customer retention:

1. Learn their needs. The number-one reason customers state for cancelling a service is “I no longer need it.” You need to find out why customers are saying they don’t have a use for your company any more. Within that answer is a marketing or product-improvement opportunity.

2. Develop a “save” strategy. If a good customer is headed out the door, what is your game plan for keeping them? Develop your strategy ahead of time so that your staff understands what to do if they learn a customer is departing.

3. Give them a great reason to come back
Special offers and incentives to your existing base can be very effective and have a higher conversion rate, than promotions to new customers. Unless you have a product or service that is likely to only be purchased once, this can be highly effective. Many businesses forget to let their existing customers know about new services or products on a regular basis or give them a more attractive incentive than new customers to come back or stay signed up.

4.Talk to your customers directly. Call them up, or meet one-on-one if you can. They’ll be honest about what they like and don’t about your products or services. Don’t just talk to your customers when it’s time to bill them – stay in touch all year.

5.Price for Loyalty
So many businesses use discounts or attractive offers to get you ‘hooked’ and then once you become a loyal and repeat customer and stay with them, charge you more or suddenly take away all the nice goodies! How does that make you feel? We’ve all signed up to those attractive incentives but then as soon as the price hikes we’re off shopping around again for the latest ‘deal’. The large High Street retailers, mobile phones, utilities and insurance companies to name but a few of the guilty, do this consistently. It only creates huge customer churn rates and their bucket becomes more leaky than ever! Price to reward your most loyal customers. If you offer a service, you can still give ‘hours or time’ for free – something for free now and then is usually noted and valued. I’m working with one of my client’s at present and we’ve introduced a loyalty pricing scheme to reward their members who stay over 2 years. Remember, the lifetime value of the customer is far more important to a business than a quick fling

 

By the same token, offering a month or two of free service or bonus products may help with customer acquisition, but it generally attracts many non-loyal customers. Make sure the revenue loss is worth it in the end.