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Mastering the Art of Customer Retention
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The nature of a business is to expand and
grow, gaining new customers along the way and evolving company practices to
reflect the changing landscape of the business itself. It can be easy, though,
to get caught up in the whirlwind of mining consumer sentiment and generating
new leads, leaving your present customers feeling somewhat neglected. When all
is said and done, your current customers are the ones who feed your business.
In turn, you are responsible for giving them countless reasons to remain loyal.
Customer retention requires effort and
scrutiny. It is crucial to create a strong, lasting bond between your customer
and the service/product you provide. We’ll guide you through effective customer
retention practices and examine how customer retention is the life force of
your business.
Internal Operation Enhancements
for Customer Retention
To enhance customer loyalty, it is important
to foster an environment where customers feel all their needs are met. This
means establishing a project management chain where each member is responsible
for attending to individual customer needs, such as answering inquiries sent
via contact form.
To achieve proper organization, you’ll need to
use customer relationship management (CRM) tools.
This system allows the entire team to see what customer retention tasks must be
completed, who is in charge of completing them, and what has already been
addressed. Adhering to deadlines and establishing clear lines of communication
between team members will only enhance the customer experience. They’ll benefit
from the attention to detail and your company won’t face potential losses by
spending valuable funds on new customer engagement marketing.
Customers also value a business’s effort to
incorporate their direct feedback into everyday operations. To do so, you must
create a feedback loop – this includes establishing a
means of receiving feedback while using that data to evolve your business, and
keeping the customer informed along the way. They want to see proof that you’re
listening to them, and a great way to do so is with a monthly newsletter.
Outline all the ways your business is
improving and the exciting new services, products, and advancements your team
has put together. Create a section of the newsletter that specifically focuses
on addressing feedback and providing valuable solutions. For example, if your
customers have been complaining about long customer service hotline wait times,
this would be a great opportunity to unveil via newsletter a collaboration with
AI chatbot tools that will reduce hold times and improve user experience.
This leads us to another important customer
retention tactic – making problem resolutions as easy as possible. This means
scrutinizing your company’s customer service department and providing
proper training to each team member. Conduct weekly to bi-weekly training that
includes updating team members about current and past products/services. Review
feedback and address unfit internal policies. Doing so will strengthen the
department as a whole and restore customers’ faith in your business’s ability
to resolve their issues.
How to Exhibit Customer
Appreciation
Sometimes, it isn’t enough to simply have an
efficiently operating business. Customers want to see you go the extra mile,
even if it’s doing something small. One simple way to keep your customers happy
is to establish a loyalty program. This program can help retain customers and
make them feel appreciated. Some loyalty programs provide regular discounts
based on certain tiers which customers reach based on their monthly spending,
much like Sephora offers with their Beauty Insider rewards program. Offer exclusive
access to product drops, higher holidays discounts, and fun annual events
top-tier customers can experience. This will prompt them to spend more and feel
like an important part of your company.
Beyond the motive of customer retention or
trying to get customers to purchase more frequently, it is a great practice to
send out “thank you” postcards at least once a year,
especially around the holidays. This can be a virtual practice via email, or
physical mail customers receive at their homes. One helpful tip is to make the
note feel as personal as possible. Address them by name, use a handwriting font,
and include a heartfelt message that exemplifies how truly appreciative you are
of having them a part of the company family.
Why Customer Retention Matters
This may seem obvious in many ways, but customer retention has big benefits and is an
undeniably crucial aspect of running a business. The last thing you want is to
encourage a customer to engage in a one-off sale – you want to give them a
reason to keep coming back. Comparatively, it is much cheaper for a business to
retain customers than attract new ones who may not end up being as loyal as
your previous clients.
Having long-term relationships with your
customers also provides your business with valuable market data. You can get a
better grasp on how a demographic operates, especially with clients who have
been with you for years. This way, your business evolves in a way that is truly
palatable and beneficial for your audience, elongating the life of your company
for decades (or even centuries) to come.