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[google_font font=\»Lato\» size=\»42\» weight=\»√0\» italic=\»0\» letter_spacing=\»\» color=\»#fff\» subset=\»\»]Customer retention increases revenue by 95%[/google_font]
Okay, you got a new customer. Such good news. You’ve done your homework, you attracted them, made them consider you et voilà! You got a new fresh outta funnel customer. So this was what marketing made a fuss about? This kind of customer retention?
Well, now come the not-so-good news. Statistics state a typical business will lose 15-20% of the customers each year and 11-20% of first time customers don’t return to the business. This added to the fact that it costs 5 times more to acquire a new one than retaining an existing one, the data does seem disheartening.
But, let’s not get discouraged! Look at this the other way around: it cost 5 times less to retain an existing one than it does to acquire a new one! And increasing customer retention by 5% can increase profits from 25-95%. That’s the data you need to focus on.
Customer retention refers to the activities and actions companies and organizations take to reduce the number of customer defections. But first, let’s understand why businesses are losing clients.
Why are businesses losing clients?
Businesses lose customers due to a flaw in customer experience and by emphasizing sales over customer retention.
One of the biggest problem of customer service is the before and after the purchase. Imagine you want to marry someone. You do everything to get their attention, take care of them, listen to them and make them feel like they are the only one for you. 7 billions people in the world and YOU ONLY SEE THEM.
Okay, now that you get them to marry you, after the wedding you change completely. You don’t take their calls anymore, never reply to their texts and never take interest in their lives or what they’re going through. Now that you got married, you became strangers. Does it look like this relationship is going to end well? I don’t think so.
If you want your customers to be loyal, you need to engage with them before AND after the purchase.
And when talking about retaining customers, you need to be strategic. This strategies have two phases: the termination phase and the revitalization phase.
The termination phase
When the client says “We need to talk” don’t panic, just listen to them and ask them why they want to leave. And then, offer them a solution that counteracts their reason.
The “I want to end the relationship” is the perfect timing to get customer loyalty, so spare no expenses on this.
The revitalization phase
This phase is the one in which you contact lost customers. One of the biggest benefits of lost customers is that they’re already familiar with your product or services. A study conducted by a publishing company reflected this fact: the expired members proved to be more profitable than the potential ones.
Made them an “offer they can’t refuse” and they are yours!
Well, these strategies look really good, but wouldn’t it be even better if there was a way to treat the illness before its late stage? Well, there is!
You can save at-risk customers by using CPRs: comprehend, propose and respond.
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[google_font font=\»Lato\» size=\»32\» weight=\»200\» italic=\»0\» letter_spacing=\»\» color=\»#46474a\» subset=\»\»]welead will help you comprehend your customers, determine their lifetime value, solve their problem, make a proposal and respond to their request[/google_font]
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To sum up: if they wanna leave, show them a reason to stay.
Do you want to learn how you can retain your customer and therefore increase your profits?
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