We all know that customers are always the main focus of any businesses. As they are the one who is responsible for the growth of any business. So when we are aware of this fact then why not to divert your focus towards the same.
It was once noticed by the MBNA President Charles Cawley that customer’s complaint letter was increasing day by day. So he decided to divert his focus on the term which is “customer’s retention”. And the results were quite impressive.
To let you get the same, we are going to have a brief discussion on customers retention strategy. But before we move on with our discussion let’s first understand what is customers retention and what is its importance.
What is Customer Retention?
It refers to the actions and activities which any organizations take to decrease the number of customer defections. The main goal of this program is to retain as many customers as possible. This might be through the brand as well as customer’s loyalty.
Importance of Customers Retention
Have you ever noticed, for how long your customers are with you?
Well, if you haven’t focused on this then it is the right time to find out. We can formally term it as Customer Lifetime Values. Wikipedia defines it as, “In marketing, customer lifetime value (CLV or often CLTV), lifetime customer value (LCV), or life-time value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer. The prediction model can have varying levels of sophistication and accuracy, ranging from a crude heuristic to the use of complex predictive analytics techniques.”
The customer’s relationship lengthens with the company so as the profit rises. And this rise is not just a little. It is found that companies can boost up their profits almost by 100% just by retaining 5% more of their present customers. So you might be thinking that how much it makes sense? For this, have a look.
- For long duration, they continue to business with them.
- The more they are trusted.
- The more investments were made in that service.
- The more they recommended the service provider to their friend.
I guess now you should divert your focus towards bringing back of your customers. So how you are going to do that, let’s discuss.
1. Opt for Anticipatory service
This technique is pretty genius. Anticipatory service can be considered as the proactive approach towards the customer service. Instead of waiting for your customers to come and complain about your service, a company can implement anticipatory service which can solve the issue before it happens.
Mind it, you have to understand the gaps and fill them with the services of your agencies. This can build your customer’s trust even stronger.
2. Do not neglect a small start
When clients seek helps from different agencies it is only because they are focused on the specific task to be completed. Their requirements may be to develop content marketing strategy or building a website. Whatever it may be but your first step should be towards getting your foot in the door.
You need to show them you are capable of working vigilantly so that you are able to deliver the quality result at the end. If you succeed in managing this, then might grow something which can be considered as long-term and profitable for you.
3. Prove what success meant for you
According to a report 46% clients who fired an agency is because they were not able to produce the desired result. But here the desired result means a lot if is not defined initially.
As for example, if we need someone to generate leads on any social media, it is not specific enough to agree on the outcome. What kind of leads? How many leads? How you define lead? As per the heading you need to define success according to your desired and then prove that meaning of success to others.
4. Provide incentives
If you think that you are able to provide incentives to your clients then for sure do that. Reward them and this in return will reward you. For this, you need to maintain your cash flow and when you provide a free trial version for some duration, they will see the value in your business and probably they may invest in your business later.
This mutual reward helps a lot in maintaining a happy and long-term relationship between both the parties.
Over to you
The above mentioned were some of the customer retention strategies which is beneficial for your lifetime value. Hope you find this blog post efficient. For more such updates follow our blogs on socioleads.