By: Ron Durrant
Most organizations do not know the full cost of losing a customer and in their ignorance accept these costs as part of the cost of doing business. But it is not. In its research in the US, TARP Worldwide estimated that it costs five times more to get a new customer than to retain an existing one. In light of this, shifting some focus to customer retention will can only be advantageous and should be an essential part of any long term business plan.
Over the years I have found many lucrative reasons why actively engaging in customer satisfaction initiatives pay off. Some of the benefits include:
- Existing customers are more profitable. With current customers the high price of customer acquisition has already been “paid” making current clients that much more profitable.
- Existing customers tend to buy more. Existing customers tend to buy more than new customers.
- Selling new products and services to current customers is easier because they are already familiar with your products and services.
- Existing customers provide referrals. A Satisfied customer base paves the road to increased sales by providing referrals.
Customers come and go for a multitude of reasons, some of which can never be overcome by good customer service efforts. An understanding of why a customer leaves is important and can lead to helpful changes to your retention plan. Here are some ideas and suggestions to improve customer retention:
- Know and track your customer retention statistics – Consistently high retention stats can indicate that your business is on the right track. Decreasing numbers can signal a need to reevaluate business performance, products and services, and positioning in the marketplace.
- Be prepared to spend money on customer retention efforts – Good account managers watching over your existing customers is a necessary and worthwhile investment.
- Don’t neglect your customers – One of the main reasons customers leave is lack of contact and the feeling of neglect. Find ways to stay in contact through regular phone calls, emails, newsletters, visits, blogs, or maybe even a personal visit. Make sure that they know you are listening.
- Know your customers business and consistently exceed their expectations – Customers need solutions to their business problems, not just a laundry list of products. To provide solutions you must understand the customer’s challenges.
- Ask for feedback – Asking the right questions can keep you heading in the right direction and alert you to coming problems.
It is for good reason that TimeShareWare has a reputation for providing a high standard of customer service. It doesn’t come easy, it takes consistent dedication with solid, dependable products that are backed by devoted and professional customer service representatives. It also takes extra efforts such as client forums and conferences where client voices can be heard. It also allows clients to play an active role in the development of better products and services. So, if you want more cost effective sales numbers, roll up your sleeves and pay more attention to retaining your customers. It’s money well spent.
If you would like more information or a demonstration of TimeShareWare, please contact us at 801-444-3113 or email us at firstname.lastname@example.org.