Do you know what actually happens when you fail to put in place good customer retention programs? Are you aware of the negative repercussions you will be facing if you ignore building and maintaining good relations with your customers?
Simply, you might lose 20% of your client base year by year! Shocked? Okay, take this: in some industries, the loss reaches a scaring 80% of customers.
Since the cost might sound appalling, it’s better for businesses to try to understand why, when, who and the whole other questions whose answers might result in putting you on the right track that leads directly to customer satisfaction.
A Customer Relations Management expert has recently put forth this hypothetical question: what if 2 companies are competing in a certain industry, with one company retaining 90% of its clients, while the second company retaining only 80 percent?
“Do you know what it’s likely to happen 7 years later?” the CRM expert asked and then answered himself saying that the “10-percent advantage in customer retention will result in a doubling of customers every seven years without doing anything else!”
Therefore, the effect of customer loyalty on the long-term profit and growth of any business is so remarkable that any change in this area could multiply over time and create success – or wreak havoc!
In fact, it needs a little more probing deep into the intricacies of business-customer relations. So, let’s begin with the logical question: do you want to double, triple, or even multiply your customer base?
Okay. There are many ideas down the road, but why not take the simplest? Don’t lose these customers in the first place!
Businesses usually invest a lot of money, time and effort in building initial relations with a customer. Then they sometimes forget that such relations should be constantly attended to and taken care of if they are to grow and pay dividends. Worse, some businesses even lose interest in the whole relation once a sale has been made, only to discover, usually when it’s too late, that they have to spend more time, effort and money to bring that customer back!
So, believe it or not: the easiest way to grow your customers is not to lose them. Reduce attrition or expect awful disasters.
And now it’s time to explore another fatal common mistake pertaining to customer loyalty, namely making the sale with customer 1, then running up to customer 2 to strike another deal, and afterwards jogging quickly to customer 3 to close the best deal ever, so on and so forth.
It should not be this way at all. Never do a marvellous job with the initial sale, then ignore the client to race after new ones. Quite the opposite, your selling has actually only just begun when someone makes that initial purchase decision because virtually everyone is susceptible to buyer’s remorse.
Therefore, to lock in that sale, and all of the referrals and repeat business that will flow from it, you need to strike while the iron is hot to allay your customers’ fears and demonstrate by your actions that you really care. You should thank your clients and remind them again why they’ve made the right decision to deal with you.
Finally, put a system in place to sell to them again, and again, constantly proving that they’ve really made the right decision.