The Importance of Customer Retention
May 9, 2013
The Internet has permanently changed how we interact with our customer base. Customer satisfaction and retention has always been a core value of most “business models.” However, the way that consumers engage and interact on social media and review sites requires a fresh new perspective on customer loyalty. While acquiring new customers offers plenty of temptations, maintaining the devotion of their predecessors leads to ultimate sustainability. A satisfied consumer is more likely to recommend your services or products to their social network (it’s more than just friends and family now!). Client retention strategies can open up far more opportunities for revenue than just an exclusive focus on new customers.
Why You Need Them
Maintaining customer loyalty may seem like common sense, but more often than not, companies haven’t implemented the right tools or strategies to ensure an ongoing positive customer experience. This approach also happens to stand as the most resourceful, cost-effective option. New consumer acquisition can cost up to five times more than client retention. Plus, if the number of customers that leave is reduced to only 5%, bottom line profits can increase by up to 125%! Keeping customers loyal to your brand will always be within your business’ best interest. The longer customers stick around, the higher the chance they will evangelize your product or services to a friend, family or online social channel. Word of mouth may build slowly, but allowing the process to unfurl organically saves money while simultaneously depleting the customer defection rate.
Why They Need You
Poor customer service accounts for a startling 68% of customer drop-offs. Loyal consumers expect the very same dedication from the companies they support. You need their business, but they need a commitment to quality products and customer service alike. They need engagement and reassurance that their money goes towards people who genuinely care. Rewards systems – solid loyalty programs, for example - and prompt, polite, proficient customer service illustrate that you place considerable value on your customer base. A little kindness stretches far in a business climate where inattentive and incompetent service is unfortunately considered the norm.
Tools for Customer Loyalty Success
Consumers crave personalization, accessibility, and insight. In an increasingly digitized world, a human touch is always appreciated. However, users oftentimes find themselves frustrated when the customer service representatives they contact via e-mail, live chat, phone, or social media have not received the proper training or updates. Every employee of every level needs to know the latest information and research regarding your products and services. Taking that extra step to provide real-time data to consumers and employees alike helps increase customer retention. It allows the individuals with whom consumers interact to better address – not to mention solve – the issues in front of them, freeing up their managers’ time and resources for other matters. And the right software can make that essential, yet tragically overlooked, step a straightforward and simple undertaking.
Keeping a customer is as easy as keeping a passion for what you do, and a sincere appreciation of what they have to give beyond the merely fiscal: input and community-building, for example. inspHire provides the rental software necessary to provide the best possible CRM rental solution for your most dedicated customers. Contact us and see the myriad ways our rental tools and software can help you figure out how to earn and reward your supporters’ loyalty, while still opening your arms to new clients.