Customer Retention and How It Works
Published: November 8, 2017
Customer retention pertains to activities and actions that business organizations take with the purpose of reducing the instances of customer defections. In other words, it is getting your customers to stay loyal to your brand of product or service. Customer retention starts when the business organization comes in contact with first-time customers and basically continues throughout the relationship between the two parties.
Customer retention programs are then very vital for business organizations because it helps retain as many customers as possible. They say that the easiest way to grow customers is not to lose them. These programs or strategies will boost profitability while encouraging repeat transactions with repeat customers leading to sustainable and long term business growth.
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Here are some customer retention strategies used by successful business organizations:
- Product and Service Integrity
Adhering to ethical rules and standards is very important for business organizations to strive in the long run. Customers should experience consistency as they make business with the organization. This means that the design, quality, reliability, and serviceability the goods or service is the same as the standard that customers perceive. Customers are likewise attracted to business organizations that demonstrate service integrity. This is seen with the way the organization handles issues relating to customers whether big or small. Customers need to feel that you are genuinely interested in them.
- Product Subscriptions
How can subscriptions help achieve growth goals thereby increase customer retention? You do not need to charge a fee for the subscription model to gain customer loyalty. It can also be done by providing benefits through exclusive content and events.
- Customer Feedback Survey
Negative feedback from customers can be avoided by listening to them. One helpful tool is the use of customer feedback surveys. This is an essential tool for learning how well a good or service is in relation to clients’ expectations. Business organizations can monitor customer feedback on an individual level. Another way is by looking at feedbacks by using a trend across a period of time and see which areas need improvement or which areas are performing well. Understanding customer feedback is one of the keys to making wise business decisions.
- Building Customer Relationships Online
Social media is widely used by the majority. Business organizations are wise in focusing their efforts on building social profiles on LinkedIn, Twitter, and Facebook and other social media used by customers. These media can be used by business organizations to aggressively connect with customers.
- Courtesy system
The courtesy system strategy starts within the members of the business organization itself. It helps improve the interpersonal skills of the team members and thus can have a profound effect to the organization as a whole. It includes speaking to workmates in a polite and pleasant manner, treating them in such a way you want them to treat your customers. What good effect does it give your business? Employees feel good of themselves and thus they are motivated to provide quality and extraordinary service to customers.
Other customer retention strategies used by business organizations include blogs, loyalty programs, magic moments, premiums and gifts, and regular reviews.