According to research from Harvard Business School, increasing customer retention rates by 5 percent increases profits by 25 percent to 95 percent.
Retaining customers is the ultimate goal for any small and medium-sized businesses across the world. Whether online or offline, ensuring that customers are satisfied is critical for long-term success and businesses need to innovate and assume a proactive role in retaining clients.
For any business that provides a product or service to customers, the act of finding, targeting and obtaining new customers is always going to be among its top priorities. Customer retention rate is how well a company keeps its paying customers over a period of time. In fact, Hundreds of thousands of similar companies are targeting the same customers that you’ve worked so hard to earn and it is crucial you have to know how to optimize your customer retention strategies. Companies who successfully implement a customer experience strategy achieve higher customer satisfaction rates, reduced customer churn and increased revenues.
To help you get started, our team has devised 5 tips to improve Customer retention through a good Customer Experience Design.
#Tip1 Encourage and measure customer feedback
How can you tell if you are delivering a smashing customer experience? Let your customers know that their voice is heard. Initiate and ask for helpful feedback. Instead of waiting for a negative feedback, proactively reach out to your customers on a regular basis to find out what they like and what they think you can improve on.
You can collect feedbacks through a project management software or using social media tools like: Google form, creating an email and workflow in Hub Spot, using surveying tools etc. Engage in a net promoter score survey, which allows you to ask your customers their prospect to recommend you to a colleague, friend, or business groups.
You can also capture customer feedback in real time by conducting post-interaction surveys through email and calls and also make outbound calls to customers in order to get an indepth feedback.
#Tip2 Build Relationships with your customers
Making an effort to relate to your customers on a personal level is often the difference between a sustainable business and one that’s here today, gone tomorrow.
To avoid losing your customers, keep in touch with them using a calendar of communications. Provide appreciation to your customers through programmed sequence of letters, events, phone calls, thank you cards, notes and gifts with a personal touch — for onboarding new clients– special offers and discounts to your most loyal customers, follow-ups etc. This can be initiated constantly and automatically at defined points in the pre-sales, sales and post-sales process.
People not only respond to this positively, they really appreciate it because they feel valued and important. It acknowledges them, keeps them informed, offsets post-purchase doubts, reinforces the reason they’re doing business with you and makes them feel part of your business so that they want to come back again and again.
#Tip3 Exhibit employee loyalty
A powerful system that improves the interpersonal skills of your team and changes the spirit of your organization. Organizations that treat their employees with respect, give them the necessary tools to do their job and continually demonstrate that they are appreciated will see a workforce that will go the extra mile for the customers they serve. Unhappy, frustrated workers have little reason to put in the effort/ employees don’t feel valued, work becomes drudgery and customers are seen as just part of the daily grind.
A Jackson Organization (currently, HealthStream Research) study shows that companies that effectively appreciate employee value enjoy a return on equity and assets more than triple that experienced by firms that don’t.
Employee satisfaction can be achieved by speaking to colleagues politely and pleasantly, without sarcasm or mockery, and treating them as you would want them to treat your customers. This will help your team to feel worthwhile and important, which will motivate them to provide extraordinary service, encourages them to be consistently pleasant in all of their dealings and to relate to customers in a warm, human and natural manner. Bottom-line is that an appreciated employee is a happy employee. And they translate into happy customers and thus bigger profits for the company.
#Tip4 Provide an excellent customer experience Service
Customer retention is a result of good customer service and experience. Satisfied customers tell others how well they were treated when doing business with you. Building a good experience, that’s consistent and predictable, and you have a shot at customer retention. The first step in your customer experience strategy is to have a clear customer-focused vision that you can communicate with your organization by create a set of reports that act as guiding principles.
For example, Zappos use their Zappos core family values and these values are embedded into their culture; which includes delivering wow through service, be humble and embracing change.
Key facets for a good customer service include: dedication to customer satisfaction by every employee; providing immediate response; no buck passing; going above and beyond the call of duty; consistent on-time delivery; delivering what you promise before AND after the sale; a zero-defects and error-free-delivery process and recruiting outstanding people to deliver your customer service.
#Tip5 Offer an easier Payment Gateway
The easier the way to pay, more people will do it. Customers usually remain hung up on landing pages that requires them to fill out billing and shipping information every time they purchase. They require to remember usernames and passwords or figure out frustrating Captchas.
By offering a simple way to pay, organizations will capture a new revenue because the people who abandoned their shopping cart at that last step will actually be able to experience a frictionless, quick payment process.
Payment technologies such as @Pay, PayPal, Vento, or GoogleWallet are simplifying the purchasing experience. Make your customer’s life easier and they’ll keep coming back.