A loyal customer base is not a right. Repeat business must be earned and customers nurtured. Even if you work in a monopoly, it doesn’t mean you automatically have happy satisfied customers. There are many reasons why customers stay with their existing providers. Sometimes it’s pure apathy, sometimes it’s price driven. It may even simply be down to one particular friendly sales assistant.
Your customers are not only the lifeblood of your business, but their brand advocacy can also help generate new business too. Here are some tactical ideas you might want to employ in your retention activities:
1. Surprise and delight. It might be a short term strategy, but it will sure make your customers feel good. Send your customers a gift they weren’t expecting and say thank you. No strings attached. This can be anything from a discount voucher to a useful household item or a treat. Customers often remember the gesture and will talk about it with friends or colleagues.
2. Incentive to re-sign. It’s amazing how many businesses offer no incentive to existing customers to re-sign. Insurance, utilities and telcos often allow customers to roll over from year to year, putting up premiums and offering no incentive to stay, simply reliant on their customers’ apathy. While this works to a large extent, as soon as a customer becomes upset over another issue, they won’t feel valued and are more likely to switch.
3. Regular (and meaningful) communications. Talk to your customers regularly. Let them know about your new products and services. Give them some information they wouldn’t otherwise know.
4. Make your customers feel special. Airlines do this wonderfully with their frequent flyer programs and graded membership levels. Similarly some retailers offer exclusive member only evenings in their stores and give special offers for their loyalty card holders. Find ways in your business to make customers feel special.
5. Encourage feedback. Listen to what your customers are saying and make changes accordingly. You can obtain this feedback in many ways such as surveys, feedback forms, or social media. This empowers your customers and gives them a voice.
6. Show your customers you understand them. If you’re able to monitor purchasing patterns with your customers use this information to give offers for complimentary products. Write them a letter for example: we notice you regularly purchase X from us. Were you aware we also sell Y? As it happens we’ve got a special deal on Y this week, ask your representative next time you call us, etc. It’s a powerful tool, not only to drive sales but to make customers feel like they are understood.
On the flip side: Bad customer service is the biggest turn off to customer loyalty. All the loyalty tactics in the world won’t work if they are not backed up by first class customer service. Your customer facing staff must be polite and helpful and at all times. Work out ways you can measure this in your business so that staff will perform to a benchmark standard. Encourage good service throughout your organisation, including your internal customers.
What makes you stay with service providers or retailers? Have you had any memorable experiences with a company that has made you feel like a valued customer? Share your stories in the comments section below. I’d love to hear from you.
