How to Improve Customer Retention
Customers are the lifeblood of any business and we all know that retaining a customer can often be more valuable than winning a new one. The key is to maximise customer retention whilst steadily adding new clients to the business.
To decrease customer churn, clients need to have the right expectations about a product. For this it is important to know what your salespeople are selling. This should align with what the company offers. Often salespeople, pressured by quotas, sell to the wrong customer or make promises that are unrealistic. To ensure that salespeople are selling to the right customers, add a bonus to their original commission if the customer lasts more than three months or a similar amount of time.
In the long run, building positive relationships with customers is even more important than selling a great product. Often, businesses see a negative correlation between a product’s quality and customer retention. It might be that the product helped customers so much that they no longer needed to use the company’s services. On the other hand, not changing customer service representatives often, helped these employees to connect with clients, and this improved retention rates.
Pivotal moments are important for gaining the loyalty of a customer. If they go well, a customer will not forget, and they will want to continue with the service. However, if they go wrong, customers might discontinue their subscription. It is important to perform very well in these parts of the customer’s journey. These pivotal moments include the on-boarding process of a new client.
Companies should also be wary of the type of customers that they target. Some customers aren’t interested in seeing a product through because of the way that they plan to use it. By looking into your customer’s retention data, you will be able to identify suspect customers.
Categories: Strategy