Acquiring new customers can be a real challenge for a growing company. It takes a savvy knowledge of the customer base and a skilled team to really pull it off. However, what is sometimes overlooked in the rush to build your company is perhaps the most important factor of all - valuing your existing customers completely.
There are many reasons for a customer dropping your service. These can range from bad customer experiences, poor marketing, or the perception that a rival company offers a better service. The most common reason, however, is that the customer does not feel sufficiently valued or well looked after. The customer should always be King, and the world-class performance of your customer retention team should reflect this.
Customer loyalty = Company Growth
Customer loyalty can really only be won by making them feel truly valued. Studies have shown that a staggering 68% of customers who leave the service behind do so because of perceived indifference on the part of the company. This translates into bad press and a massive loss of profits. But conversely, the pay-out from properly valuing your existing customers is huge, with retaining just 5% more of your existing customers giving the possibility of a 75% spike in profits.
The retentions department of a company is the backbone of this effort. The skills involved in retaining customers whose loyalty might be wavering are not easily learned, and those that really pull through on retentions are always the best at driving great customer experiences and retaining the loyalty of the customer base. The payback is not just to leave a satisfied customer base, delighted with the service you offer, but also to keep the company in a winning position. The reality is that 80% of your company’s future profits come from just 20% of current loyal customers. Winning back customers who may have defected is also easier, less expensive and more profitable than gaining new ones.
Building a great Customer Retention team is one of the most valuable ways of fostering customer loyalty. The important thing to remember is that happy customers equal an increasingly smooth operation that benefits both your company and the customer. Treat your customer as number 1 and the results will pay off.
About The Author:
Niall O'Sullivan is a Journalist and Contributing Content Writer for Zevas Communications. Connect with Niall on LinkedIn.