Discover the “Customer Retention Methods” to Triple Your Profits
Having customers who turn into raving fans is the key to quickly grow and scale your business. I often have conversations with my clients and other business owners, who I come across around lead generation and how to acquire more clients. These are the normal conversations as every business owner focus on a steady flow of new customers.
Today I was also reflecting on some of the conversations that I don’t hear as often. One of these are “how do I keep my existing customers loyal to my brand?”
I have certainly been enrolled into programs and services, then afterwards, never hear back from these businesses. Before I became a customer, I was receiving phone calls, invitations to their events; to name just a few ways that they were staying in touch.
Then all a sudden there was no more contact. I was left feeling discarded and used. They simply went back to focusing on their lead generation prospects. Sure, if I had a problem, I could reach out to their online chat or leave an email, but that was it. They approach is not pro-active it is passive.
What happened to maintaining the relationship and being proactive. The issue here is the only time I would hear back from them, was when they were trying to sell me another service or product. Have you ever experienced this as well?
Did you Know …….
That to gain a new customer it costs 4 – 5 times more than to keep an existing customer? That if you increased your customers service by just 5% that would be equivalent to around 23% - 95% profit increase to your business. The success rate to upsell to your existing customers is between 60% to 70% compared to new customer which is only 5 – 20%.
When I noticed these statistics, it simply made sense that a good business strategy is about building strong relationships with your customers.
What does Good Customer Service Mean?
What Causes your Customers to Leave?
What motivates them to shop around, and ultimately abandon the business they already know and buy products or services elsewhere? It is high time we looked at why your business might be losing their customers and present some solutions to fix it. Here are five common factors that are hindering your customer retention and five effective tips to reverse this trend.
Here are some reasons why they Leave?
There expectations were not meant.
It is not unusual to hear that someone has purchased a service and the expectations were not meant. I certainly have experienced this myself. I see this all the time, when coaches and consultants online will tell you that if you implement this certain strategy that you will immediately create a 6-figure income.
This prediction is based on no evaluation of your current business skills or the state that your business is already in. To me this is like waving a red flag to a bull, and I am completely against these promises. It is setting up your customers to fail.
The desperate businesses will take up the offer, and later to be seen still searching for the right ‘magic formula’.
The raw truth is, having a thriving business takes time and investment. There are no overnight successes. It all comes to consistency, disciplined and taking massive action.
Having a dis-satisfied customer will tell others, and your reputation will be on the line.
You are not engaging enough
I call this the dump and run method. Now that your customer has successfully parted with their money, it is not important to maintain a relationship anymore.
Don’t you hate it when you have joined up for a service, and you only hear from them, when it is time to renew your membership, or when they are wanting to promote some services to sell again to you.
This is so unauthentic, and most people don’t like being sold to. Keeping engaged is giving good content to your customers, who find that information valuable.
It is about being proactive and having an on-boarding process in place within your business. This can be simply achieved through automation.
Once you have created your back-funnel than it simply ticks away in the background.
You are not showing the value of your service
How are you communicating the extra value that your service provides? By sending regular updates that include your new features will certainly lead to your customers having more success in the use of your service.
How will your product create more success for your customers?
Remember raving fans will edify you to their networks which will always bring in new customers, through their recommendations.
Your Competitors are better than you
Keeping an eye on your industry and market will ensure that you are not left behind. We live in a fast-changing world which requires us to adapt quickly.
I remember a camera company called “Kodak” which simply didn’t adapt when the digital world exploded. Here we have a leading $1 Billion company go into liquidation in 2012.
They simply didn’t keep an eye on the market and its changes.
Ensure that you continue to research your markets, conducts survey's to keep in touch with what your customers are looking for.
Poor Customer Service
Your business is simply not set up to handle any issues that may occur with your product or service.
How do you handle complaints, what happens when your business is scaling and things start to fall through the cracks, due to either no automation in place, or not enough resources to support your growth?
Do you need to train and develop team members? What is the cause of your poor customer service? Do you need to upgrade your technology to cope with the extra demand.?
Do you know the Difference Between Customer Service and Customer Success?
Customer success aligns closely with customer support to take customer satisfaction to the next level.
Customer support focuses on working reactively on the front lines — fielding customer questions, issues, and requests over phone, email, live chat, and social media. Support is the function that solves problems when customers raise them; it's reactive fulfillment to specific customer requests.
Customer success is focused on working proactively in partnership with customers over throughout their time as a customer to help them get more value out of their purchase and share their feedback with you. It drives the customer experience forward and ensures a successful path into the future.
On-boarding Process for Customer Success?
On-boarding is a customer success process that teaches new customers how to use your product or service. Rather than learning by themselves, customers are taught by a company representative who personalizes the training according to their needs. This way, customers not only save time but also understand how the product can help them achieve goals.
On-boarding is an effective customer retention tool because it prevents churn with new customers. When users are first working with your product, they may get frustrated if they don't understand how to use it. Customers have deadlines and they can't afford to spend time learning how to master your product.
On-boarding ensures customers know how to utilize your products or services so they can complete their goals on time.
It's no secret your business needs exceptional sales and marketing teams to be successful. But in a world where customers have more options than ever, sales and marketing alone aren't enough to sustain growth.
Businesses can no longer rely on annual contracts to lock customers in. Plus, the cost of customer acquisition has steadily increased over the past decade.
So, what else can businesses do today to succeed? The answer: Invest in customer success — one of the most popular, emerging growth opportunities in business today, cross-industry.
This can easily be implemented through automation with your customer retention funnel.
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