Your current customers are your biggest asset. Use these 5 simple ways to retain them!
If customer retention is not at the forefront of your business’s strategic plan, it should be. Did you know that retaining existing customers is far more cost-effective than acquiring new ones? In this article, we’ll cover five ways to retain customers.
New vs. Current Customer Facts
Customer acquisition costs are five times that of retention costs. According to invesp, 44% of companies focus on customer acquisition compared to 18% on retention. So why are most businesses hyper-focused on new customer acquisition? It seems we have it backward.
According to customer acquisition and retention marketing stats, the success rate of selling to an existing customer is between 60% – 70%. In comparison, the success rate of selling to a new customer is typically less than 20%. Furthermore, a study cited by Harvard Business School found that increasing customer retention by just 5% could yield profit increases between 25% – 95%!
Through taking care of your biggest asset—your existing customers—you will develop a loyal customer base that becomes your most likely source of new business.
Here, we will explore five simple ways to retain existing customers.
1. Proactive Membership Renewals
The best way to retain memberships is by reaching out to them before their current membership expires to offer a renewal. Proactive calling keeps more customers, and these customers will likely appreciate the reminder.
Most companies offer member-only benefits, so a pre-expiration call is an excellent time to remind them of these essential member-only benefits (it is likely why they signed up in the first place). In addition, calling current members creates a personal touch, which is always appreciated.
2. Renewals for Lapsed Memberships
Frequently, members allow their membership to expire without realizing it. The Community Brands Member Loyalty study found that nearly fifteen percent of lapsed members forgot to renew.
How many times have you called a former member only to discover they did not know their membership lapsed? This is a great time to offer a special promotion to customers with lapsed memberships as a renewal incentive. Again, convenience is essential here—always make the renewal process easy by allowing payment directly over the phone.
Of course, this all sounds great, but what if you do not have the time to make these calls? Consider bringing in call-center professionals like Telepromm. Time is money, and outsourcing calls is a great way to make the most of both.
3. Winning Back—and Keeping—Former Customers
When you have dormant customers or former customers not currently using your services, the personal touch of a courtesy call may be the key to helping you win them back.
According to Learnsmart, the main reason your customers leave is they no longer perceive value in what you offer; as a result, they stop service—or even worse—begin to look to your competitors. However, frequently the cause of customer abandonment is well within a company’s control. It often comes down to effective communication and successfully highlighting products and services that set you apart from others.
Perhaps your company has new offerings. A touchback call is a perfect time to let dormant customers know about them! Strategically reach out to them, let them know they are valued, and remind them of the benefits of continuing a relationship with your company.
Do not be disparaging, but make sure they know the differences between you and your competitors. Then, finally, seal the deal with a special offer for coming back.
Lastly, if you dropped the ball in the past, admit it. Own your mistakes and be sincere. Your former customers may want you back as much as you want them back, but there may be some hard feelings. Nothing breaks down the walls like an apology, taking ownership, and a sincere promise to make it right.
4. Effective Account Management
Account management is about retaining your customers’ business and helping them grow with your products and services. Take the time to learn about the customers you support, identify their goals, and your role in assisting them in meeting and exceeding these goals.
Sometimes this requires out-of-the-box thinking, but the key is to identify WHY they choose you over your competitors. What value do you bring that others cannot?
Answering these questions requires you to reach out to your customers often, by phone, to learn their needs, wants, goals, and objectives. In doing so, you become an increasingly valuable business partner, resulting in a more mutually beneficial relationship.
5. Promotions & Blitz Campaigns
Is there currently a sale or promotion running on products or services your previous customers bought? Of course, we all receive promotion emails; however, have you thought about the personal touch of a phone call?
During special promotions, call centers can contact customers, knowing your current advertising and sales offerings. Phone calls may significantly increase sales because they are more personal and create a sense of urgency and excitement about the promotion.
Retaining customers is not always on the mind of business owners. Companies frequently take their customers and the business they generate for granted. By using one or more of these five simple ways to retain customers, you can start to increase your retention rate significantly, enjoy higher profits, and drive brand loyalty.
Customers have a choice of where to do business, and in today’s increasingly competitive environment, it is more important than ever to make customer retention a top priority.
Kelly Doyle is an Operations Manager for Telepromm. Kelly has over 29 years of experience leading cross-functional teams for inbound and outbound, high volume call centers. She has held several roles over the course of her career such as Sales Manager, Human Resource Manager, Senior Manager and Client Services Manager. She is Six Sigma Green Belt certified. Kelly is passionate about exceeding goals and is results driven.
