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The 4 Pillars of Customer Retention

  #1  
Old 07-14-2009, 06:21 AM
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Default The 4 Pillars of Customer Retention

It is not a secret that it is much harder and more expensive to acquire new customers than it is to retain existing ones. Retaining customers is not a passive thing and many businesses fail to do it right and sometimes to do it at all. To prevent decline of their business, companies often increase their efforts and spending by expanding existing customer acquisition strategies. Such increase is often connected with increased cost for the additional volume and also tends to become less and less effective the more you do it, creating a vicious cycle that can lead to the failure of the business when expenses reach a point that profits get reduced to nothing and then turn into losses that will take away from the businesses substance and equity until it is too late to salvage what is left and change course. Spending time and money on retaining existing customers and leverage the relationship that was build over time to increase their spending with you instead of somebody else is much more profitable.
Doing a good job with that also impacts indirectly your customer acquisition efforts in a positive way, because happy long term customers of yours are more likely to recommend you to their friends and colleagues than customers who have no relationship with you and only moderate or not happy with you at all.
1. Customer Service


It is only possible to retain a customer who is a happy customer or a customer how has no other choice (which is one of the reasons why a monopoly is a bad thing for everybody, but the company who has it). Forget about the customers that are impossible to make happy. They are in the minority and their number is insignificant. If you think that it is in the double digit percentage range, have a closer look at your marketing and advertising campaigns and what sales is doing. Customer expectations that are too high to meet are most likely the result of false promises made during the conversion process. While presenting ones product and company in a good light is understandable and not a problem, are exaggerations of key elements of your product or service that are critical to your customers doing more harm than good. You might get the initial sale, but you will probably lose the customer as soon as they can away.
If you did all of this wrong, good customer service will not help you very much to make a customer happy and retain him. Good customer service can do exactly that in cases where something is not clear to the customer and requires explanation or clarification. Nothing is 100% perfect all the time and errors and misunderstandings happen. This is usually not the end of the world and can be fixed easily without letting it escalate.
Good customer service is critical in those cases to resolve the issue quickly and without having the customer go through a complicated and lengthy ordeal. Doing a good job here will turn an upset customer into a loyal customer and even evangelist for your company and your services.
 
  #2  
Old 07-20-2009, 12:16 AM
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Default Customer Retention

Hello,

Customer Retention- Customer Retention marketing is a tactically-driven approach based on customer behavior.
or we can say that Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections. Successful customer retention starts with the first contact an organization has with a customer and continues throughout the entire lifetime of a relationship. A company’s ability to attract and retain new customers, is not only related to its product or services, but strongly related to the way it services its existing customers and the reputation it creates within and across the marketplace.
it is more than giving the customer, what they expect.

Have a nice time a head and keep sharing such useful information.
 

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