CUSTOMER RETENTION STRATEGY MAXIMIZES THE VALUE OF YOUR CUSTOMER OVER A LIFETIME RATHER THAN A SINGLE TRANSACTION

If you currently have customers then keeping them should be your #1 prerogative. Research has shown that attracting new customers is 6-7 more times expensive than selling to the ones you currently have (ThinkJar, 2018). Additional research shows that a 5% increase in customer retention can increase a company’s profitability by 75% (Bain and Company, 2019). Then there is the concept of lifetime value of a customer. Multiple transactions over a lifetime of a loyal customer is much more valuable, measured in revenue and profit, than a single transaction.

REACHING CUSTOMER RETENTION GOALS THROUGH STRATEGY

In the informational age the competition for your current customer’s mind-share is overwhelming. If your product and service is not pushing the right buttons with your current customer then you face the possibility of dissatisfaction and them exiting. Having the right tools in place can help you create highly satisfied customers. These tools include: research, customer service, innovation and loyalty programs – which are all drivers of customer retention strategy.

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CUSTOMER RETENTION STRATEGY TERMS

Customer Relationship Management (CRM)
Customer Research
Focus Groups

Moments of truth
Customer surveys

Lifetime Customer Value (LCM)
Market Research
Research and Development

CUSTOMER RETENTION STRATEGY TACTICS

There are several customer retention tactics worth mentioned that firms engage in.

Research Your Customers

Knowing what factors delight your current customers is the first step towards developing an effective customer retention strategy. Research can be conducted through surveys and focus groups. Other research areas include analyzing customer’s purchasing behavior. Secondary data sources also reveal a bigger picture on different market segments. With research you are laying the groundwork to develop a quality customer experience.

Customer Service

Unhappy customers speak by exiting. That’s why it’s important to ensure that every experience your customer has with you goes beyond their expectations. Training your personnel in customer service is the best course of action to improve your overall experience with your customers. Having the right tools in place can help your staff anticipate and deliver exceptional customer service. This includes every touchpoint.

Product Innovation

The design of your products and services and the features they carry is an important factor for your customers’ satisfaction. Keeping your products and services cutting edge and user friendly not only attracts new customers, but can also make or break the satisfaction with current customers. With technology products this is especially important, as consumers are looking for the next innovative feature to propel them towards their next purchase. This is also important with your service programs, making sure your service delivery is cutting edge and competitive in the marketplace.

Loyalty Programs

Sometimes the simplest form of appreciation to your most loyal customers comes in the form of a “thank you”. Flattering your customers creates a feeling of appreciation which often results in continued loyalty. Taking it one step further loyalty programs can offer a way to incentivize customers towards repeat purchases. Loyalty cards and membership programs which give discounts and reward customer with gifts can deliver customer retention while increasing and speeding up future consumption.

HOW WE HELP YOU WITH YOUR CUSTOMER RETENTION

Customer retention strategy is an area of expertise that we have been implementing since 2002. We have successfully designed and guided customer retention programs for our corporate clients, helping them keep their current customers. We’ve do this through research, customer service, innovation and loyalty programs. This equates to brand loyalty which creates a lifetime of value and revenue from each customer.

LEVERAGE THE HOLY GRAIL IN YOUR CUSTOMER RETENTION EFFORTS

We are seasoned customer retention strategists that have clocked thousands of hours handling our client’s customer retention needs which results in brand loyalty which drives higher profits. With experience in customer retention comes a natural tendency to arrive at solutions at a much faster rate than less seasoned professionals. Contact us today and we will arrive at a customer retention strategy that helps you keep your customers over a lifetime.