Every business owner is aware of the importance of customer relationships to the success of their business; however, there are only a few who understand the impact of customer loyalty. According to a study almost 89% of consumers stopped doing business with a company on account of customer service.
On the other hand Bain & Co, report that the chances of losing customer to competitors are four times high if the problem is service related, as opposed to any product or price related problem. It is important that you acknowledge the competition in the market, because you will not be able to retain your customers if you don’t take steps to ensure their loyalty.
Listed below are five tips which can help you retain a loyal customer base:
1. Customer engagement at the right time
In Accordance with a study conducted by Totango, almost 81 percent of customers are willing to pay a higher price in return for an excellent customer service. This clearly shows that importance of experience is at par with the product itself, in the eyes of the customer. By maintaining a proactive approach towards customer engagement, you can ensure that you are providing the customers with all the support that they require.
Let’s consider the example of Sidekick by HubSpot, in this regard. The company maintains follow ups with their customers by sending an automated email, a week after the account is created, which is customized to reflect their previous interaction with the product. For instance, if you aren’t interacting with sidekick regularly then you will receive a follow-up email providing tips on the best way to use its two fundamental features.
2. Provide value to the customers and maintain it
Most businesses consider interactions with their customers as a onetime occurrence. This is the wrong approach if you want to succeed. It is very important for you to understand that customer experience is an ongoing journey which is never ending. It involves a string of interactions which contribute towards building loyalty.
One such example is of Trader Joe which is known for valuing its customers by constantly thinking of new ways that make the shopping experience of their customers more enjoyable and easy. It is the belief of many market researchers that services like rapid checkout lines, well-curated product selection, deals on items we all love such as wine, and an array of sample foods, are main attractions for its loyal customer base.
3. Monitor Customer Behavior on a regular basis
In order to maintain a long term relationship with your customer you need to understand the way they are engaging with your product throughout its life. The companies which have acquired the top place understand completely that mere historical snapshots no longer serve the purpose. As a result of this they have resorted to using sensor based capabilities which allow them to collect feedback in real time. In turn these companies act on the feedback immediately.
4. Prioritize according to the needs of the customer
The rapidly growing grocery-delivery service Instacart is an example for all businesses. These guys certainly know what they are doing in terms of retaining their customers. In order to inform the users on the status of their delivery, it sends them emails and text messages which are timed perfectly. Once the customers receive their delivery Instacart asks them to rate their experience on a scale of 1 to 5. Any user who rates them below 5 receives a personalized email from them. All concerns are addressed within 10 minutes.
5. Do not just focus on large organizations
According to McKinsey’s customer base, 70 percent of their buying experiences depend on the basis of how they are treated. In light of this we can conclude that businesses can benefit by investing in low revenue accounts.