20 Best Practices for Customer Retention

20 Best Practices for Customer Retention

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In this article, we will address 19 best practices for customer retention to keep you ahead of the game. But before that, let’s explore from both the customer and the business owner’s perspective. Businesses with Customer management have had it easy with customer selection and acquisition but struggle with customer retention and customer growth.

How would it feel playing the role of a customer with a bad experience of a product or service you just purchased?

Personally, I will be reluctant to transact any further business with that brand or store. Even If the query was resolved, another brand will always be my first option. In other words, the more positive an experience the more a brand stands out as a quality product/service provider. 50% of consumers would use a company’s product more frequently after a positive customer experience, reviews or ratings. 

The effect on businesses if we reverse the role to a business owner or service provider would be a loss of customers trust on the product or services. Hence, a decrease in sales, loss of loyal and potential customers to your competitors. The consequences of not implementing best practices for customer retention also compound over time, and in sometimes unexpected ways. Even a tiny change in customer retention can cascade through a business system and multiply over time. The resulting effect on long-term profit and growth shouldn’t be underestimated.

Don’t lose your customer if you want to grow your businesses”.

What is Customer Retention?

Customer Retention is simply when a customer continues to return to the same business to purchase a product or service due to the quality of the product or services. Once the customer has been acquired, the key is to keep him. A company retains its customers by delivering on its value proposition so that the customer has no need to look elsewhere. Therefore, ensuring high-quality service is fundamental. The examples includes,
•      The consumer software testing firm monitored the service levels surveyed its customers every six months and monitored its performance in resolving the top ten customer issues.
       Another firm introduced a customer report card whereby its industrial customers could provide feedback on the company’s performance.
•     The report card created a dialogue that strengthened the vendor/customer relationship and improved retention.
•     The engineering company measured the strength of its partnership by striving for sole-source relationships.

One of the best practices of customer retention strategies were based on providing superior service, listening to customer feedback, and building relations that discouraged defection. Sales Retention Services introduces its client and customers to a modern but proven customer retention strategies that will cost you little or nothing to implement. Behind each technique listed here, there is an in-depth step-by-step process that will increase your customer retention significantly once implemented and will have a massive impact on your business

1. Your brand is the gateway to customer retention.

Build a unique brand that standout from competitors and represents your values. Establish a social presence and attestation using social media links and reviews from different business platforms. Create a customer community around your brand. In addition,You also need social proof from platforms like Amazon Customer ReviewsTripAdvisor, and Yelp  or something that always promote the credibility of your products and services .

2. Establish the best customer relation service.

Set up a team of customer service that anticipates the problems and solutions to all queries from the customer. This service team reaches out a lot more on a consistent basis. UI (user interface) tools can assist in anticipated customer services queries.

3.  Consistent Customer Service

Expectation = Reality = A Happy Customer

Omni-channel marketing should aim to create consistent customer experiences across all channels. In other words, the customer experience in your physical store, on your mobile app and when someone visits your website should feel the same.   To create a consistent customer experience that will enhance the best practices of customer retention all teams need to work together and be on the same page at all times.

Processes: Many people think of processes as slow and boring. However, when you’re trying to create a consistent experience process is key. This isn’t to say script every customer interaction. You just need to map the key processes such as how much a customer will pay, how a support ticket is handled and what how a return is handled.

Communications: Regardless of if you have an omni-channel customer experience or a single-channel, communications is key. You need to ensure team members know the processes. If you do have an omni-channel experience, it’s important to promote communications between channel managers to ensure they can flag inconsistent experience quickly.

Read the insightful article by Fast Company about the “6 Disciplines Behind Consistently Great Customer Experiences”. The article encourages companies to enforce a set of standard or best practices for customer retention that will smooth out the kinks between departments and create a consistent customer experience.

4.    Build trust through relationships.

shakehand-best practices for customer retention

Understand who your customers are, their behavior data and craft strategies to enhance the relationship. For any business to retain customers, trust must be established. The moment customers discover that you’re not trustworthy, they will switch to your competitors. Nothing scares customers away like bad experience. In additon, they’ll spread the negative news with others. Also, when you build and grow trust, your customers will gladly advertise your brand without asking for any compensation. Therefore, be transparent and honest with your customers

5.    Use analytics tools and KPI (Key Performance Indicator) to track the quality of customer services.

A good analytic tool like CRM (Customer Relation Management) software’s can indicate the key behaviors of your customers. These behaviors include response time, conversion rate, actions per engagements and also subscribers drop rates. What causes these behaviors and how to resolve it.

6.   Leverage customers and feedback surveys

feedback-best practices for customer retention

This will help in short and long term goals by allowing freedom for customers to express their mind and also review your products and services. This will track the customer satisfaction and also help in retargeting.

7.  Introduce automation to retarget your customers

Continuously automated marketing and retargeting will enhance your customer retention rate. Through automation, you can manage your customer contacts, drip feed education emails, schedule promotional emails, text messages, and event notifications. Automation will set you on a faster pace more than your competitors and improve your practices for customer retention with better results.

8.  Be where your customers are

Use your customer data to determine which social media platform they frequently use. Create a fan page with free and educational content. Engage your customers and use the Ads to target and re-target your customers with new or improved products and services.    

9.  Webinars educate and inspire customers

Webinars are powerful lead generation and customer retention strategy. It’s the best strategy to revive a dying business online. “Based on a survey we conducted with our clients, between 20% and 40% of webinar attendees turned into qualified leads.” (source). The recent trend can be seen in most businesses using click funnels to keep in touch with their customers.

10.  Be passionate and engaged in personalize service

Celebrate big moments with your customers, whether it’s a national holiday, your company’s two-year anniversary or your customer’s birthday. Take advantage of social media, email, or direct mail campaigns to celebrate these moments. Send them best wishes but customized emails, text, social shares or tags.It pays to know that their products and service provider is interested in their personal laife.

11. Offer time-limited promotions

Entice your customers with bonuses, promotions and limited offers with a call to action. This should be exclusively applicable to your loyal customers. The will spread to other potential customers willing to subscribe to your services and will also encourage existing customers. Tailor your loyalty program and rewards to fit your business goals.

12.    Don’t over-promise

Always be clear with your customers about the product and services that you offer before any purchase is made. State the core benefits and what the product can do but do not over-promise but be sure to over-deliver. A recent study by Manuela Vieth revealed that unkept promises provoke revenge against the organization that failed to honor them. As a result, this will have a negative effect on your best practices for customer retenion journey.

13.   Create offers for social shares

gadget and device-best practices for customer retention

Create a program to offer discount codes to customers with the highest number of shares in any social media platform. This will encourage your customers to participate and also create awareness and market your brand effortlessly. Hence, including this as your best practices for customer retention services.

14.   Reducing Attrition

Most businesses, ironically, invest an enormous amount of time, effort and expense building that initial customer relationship. Then they let that relationship go unattended, in some cases even losing interest as soon as the sale been made, or even worse, they abandon the customer as soon as an easily remedied problem occurs, only to have to spend another small fortune to replace that customer

Therefore, attrition can be reduced by reaching out to unattended customers and be actively responsive in queries and comments on the social platforms. When you make it your business not to lose customers, the growth rate will eventually increase.

15.    Bring back the “lost sheep”

Try as much as possible reach out to the customers that purchase your services years ago or that had past bad experience or where ignored or with unresolved services.

There’s little point in dedicating massive resources to generating new customers when 25-60% of your dormant customers will be receptive to your attempts to regenerate their business if you approach them the right way, with the right offer. Reactivating customers who already know you and your product is one of the easiest, quickest ways to increase your revenues. Re-contacting and reminding them of your existence, finding out why they’re no longer buying, overcoming their objections and demonstrating that you still value and respect them will usually result in a tremendous bounty of sales and drastically increased revenues in a matter of days … and will lead to some of your best and most loyal customers.

16.  Courtesy system

A powerful system that improves the interpersonal skills of your team and changes the spirit of your organization. It involves speaking to colleagues politely and pleasantly, without sarcasm or parody, and treating them at least as well as you would want them to treat your customers. This will help your team to feel worthwhile and important, which makes for pleasant social contacts at work. It also motivates them to provide extraordinary service, encourages them to be consistently pleasant in all of their dealings and to relate to customers in a warm, human and natural manner. This results in better, warmer, stronger, more trusting relationships and longer term bonds with your customers.

17.   Measure lifetime value

lifetime cycle-best practices for customer retention

There’s a vast difference between the one-off profit you might make on an average sale, which ignores the bigger picture, and the total aggregate profit your average customer represents over the lifetime of their business relationship with you. Once you recognize how much-combined profit a customer represents to your business when they purchase from you again and again, over the months, years or decades, you’ll realize the critical importance of taking good care of your customers. And because you’ll understand just how much time, effort and expense you can afford to invest in retaining that customer, you’ll be in control of your marketing expenditure and conversion optimization.

18.   Premiums and Gifts

Client reciprocity strategy can go a long way to improve your best practices for customer retention. Rewarding your customers with surprise customized gifts and this will go a long way to keep them. Not only will you win their emotions with a gift but in addition, you will also be able to market your brand and services through your customers to their friends and families.

19.   Welcome Book and loyalty program

loyalty-best practices for customer retention

Dare to train your new customers through your customer service report with educational brochure or books. Show them step-by-step, how to use your product, the benefits, and behind-the-scenes video or pictures. And nurture existing customers with loyalty programs.

20.  Train your customers with educational emails

Sending email newsletters is still the #1 customer retention strategy that works. With the right application, an email newsletter can help you train your customers – especially when you’re 85% focused on educating them with branded content.

In conclusion, retaining your customers could be the hardest part after an acquisition.

Are you having a hard time following through the process?

We got you covered. Our customer service team will work you through these best practices for customer retention services and will provide you with excellent services that will enhance the growth of your business and keep your customers coming back. We handle all inbound and outbound customer service and virtual assistants so you don’t need to worry about losing customers anymore to competitors.  Contact us for a quote today!

If you need more insight on the best practices to use the comment or ask questions on the section below.

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