TIPS AND STRATEGIES ON HOW ORGANIZATIONS CAN IMPROVE CUSTOMER RETENTION

For any business that provides a product or service to customers, the act of finding, targeting and obtaining new customers is always going to be among its top priorities.

But what many businesses tend to forget is that once a customer makes the first purchase, there is much more to be done in the customer relationship. Smart businesses know that the first purchase is really just the beginning, and that the real business value lies in retaining that customer.

According to Filiberto Amati,Founder of Amati & Associates, an International Business Development Expert and a hands-on leader and change manager with 15 years of experience. He is also the author of, “Co-creation: Mystery Solved”, a book about marketing via co-creation.

The first step to increasing customer retention is to…

Understand and measure why your customers or clients are leaving in the first place.

You can’t solve a problem if you don’t understand to what extent it exists or why it exists. Once that information is understood, the strategy is simple:

1. Treat your customers/clients like people. The internet is a wonderful thing, but making an effort to relate to your clients/customers on a personal level is often the difference between a sustainable business and one that’s here today, gone tomorrow.
2. Appreciate your clients/customers. Thank you notes, thank you gifts for onboarding new clients and/or discounts to your most loyal customers can speak volumes. Even something so simple as recognition on social media for your most loyal customers can be valuable.
3. Welcome and ask for constructive feedback. Let your customers know that their voice is heard. Don’t wait for negative feedback to come to you, proactively reach out to your customers on a regular basis to find out what they like and what they think you can improve on.
4. Build the customer and not the sale.
5. Give great service. Make sure the customer is dealt with promptly, courteously and efficiently. Listen to their needs and meet them as efficiently as possible. Customers will remember this, but they will remember bad service even more.
6. Be quick to resolve issues. Not every product works exactly right and sometimes paid services don¹t meet expectations. Accept that when the customer¹s expectations haven¹t been met, you must work hard to make sure the issues are resolved to their satisfaction. They will remember this and they will feel like their purchases are safe with you next time.
7. Keep in touch. Gather contact data on your customers when you can, and keep it current. Reach out to them with special offers or new products and services, or just send them a birthday card. Use any excuse to keep your company in their minds.
8. Reward loyalty. Everyone, once in a while, should treat a loyal customer with a free product or special discount just for being a loyal customer. You¹ll be surprised at the goodwill this will engender.
9. Thank your customers. Chances are you have competitors in your category and that means your customers have options. The fact that they chose you, whether or not because of your pricing or reputation or convenience, is something that you appreciate, so show it. Thank them. Thank them every time for choosing you and let them know in words and deeds how important your business is to them, regardless of whether they¹re your smallest customer or your largest.

According to Shep Hyken, CSP, CPAE is the Chief Amazement Officer at Shepard Presentations, customer service expert, professional speaker and New York Times and Wall Street Journal bestselling business author. 

When it comes to the best ways an organization can improve customer retention, they should first understand what customer retention really is:

Customer retention is a byproduct of customer service and experience. Create a good experience, that’s consistent and predictable, and you have a shot at customer retention.

The root of retention and loyalty comes service, which actually starts at the top, with the leadership determining if they want a customer-focused culture. That culture is what drives the customer experience. The way leadership treats employees drives the customer experience. The way employees treat each other drives the customer experience. In short, what is happening on the inside of an organization is felt by the customers on the outside. It’s on the inside of the company where customer retention begins.

The above are just few of the many ways that a company can retain, nurture and grow with their customers.

And if you have one or more points to add, please feel free to add to these points and your comments will be greatly appreciated. Thanks. See you at the top. 

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