When it comes to your business, few things are more important than customer retention. Many entrepreneurs and business owners focus entirely on attracting new customers and targeting new demographics. While these are certainly good ways to grow a business, statistics show that focusing on retaining customers is much more profitable. How much more? A study by Harvard Business School found that increasing customer retention by 5% can boost profits between 25-95%. Furthermore, customer retention is far more cost-effective than marketing or other techniques targeted at new customers.
Customer retention is by far the best way to grow a business, but how do you improve customer retention? Just like with a marketing campaign, improving customer retention requires a strategy based on data, metrics, and feedback. This is where a customer retention call center with proven expertise can help your company develop an effective strategy. Using feedback from your customers, a retention call center can determine the best approach.
Here are some tips for developing a customer retention strategy by using customer feedback.
Ask for Customer Feedback
Even if you were to do nothing with the customer feedback you receive (which wouldn’t be a good idea), just the act of soliciting feedback from customers will improve your customer retention. People like being heard and they like knowing that their feedback can make a difference. When a customer is asked to provide feedback, they are more likely to feel appreciated. This is why asking for customer feedback has to be the core of any customer retention strategy. While many companies may be wary of putting off their customers or turning them away, asking for feedback actually improves customer satisfaction.
One of the great things about asking for customer feedback is that you create the opportunity to help guide your customers’ opinions. Studies have shown that simply being asked about a product or topic makes a customer form an opinion on it, even if they didn’t have one before. This means that customer feedback is the perfect opportunity to actively guide your customers to an opinion and create interest where there may not have been any before. So, by asking for customer feedback, you can actually increase your customers’ interest in your company.
One of the great things about asking for customer feedback is that it also gives you the opportunity to promote or advertise your products or services. Soliciting customer feedback has been found to boost awareness and, unlike with traditional advertising, you can also obtain valuable feedback and data from it. By putting more of your budget and effort into customer retention, you can save money while boosting profits. Merge your marketing and your customer retention for good effect.
Understand Your Customers
The biggest benefit to soliciting feedback from customers is that you can determine exactly what they want from your company, what they like, and what they don’t like. By using customer feedback, you do not have to operate your business blindly or through guesswork. Instead, you have proven data and statistics that can guide your decisions and be used to boost both customer retention and profits. Once you know what your customers want, you can implement the changes that will keep them with your business.
As the leading provider of outsourced call center solutions, 3C Contact Services teaches its partners the necessary customer service skills needed to engage and retain customers. Call us today at 1-888-353-2335.