Customer Retention as a Profit Center

The foundation of maximizing customer value has to be creating excellence in keeping and satisfifying customers!

Does your company culture, regard customer retention as a Profit Center?

New customer acquisiton costs is a big investment – in time, in resources and in direct monetary cost. So know the cost to obtain a new customer and then make an intelligent decision about proactively investing in keeping and nurturing your relationships with the ones you have. They will remember you with a favorable thought!

Here are two key steps to start in making customer retention a profit center:

Step 1: Develop a dedicated customer retention and appreciation progam

Include frequent contact and communications – a newsletter, greeting cards, little gifts, an email with links to remarkable content….. Do make sure it is valuable to them.

Are you like me, and enjoy getting those birthday cards and other electronic appreciations?

Plaxo eCards has a inexpensive service that will use your contact list and notify you of a client’s upcoming birthday. You can easily pick a Premium card and have it delivered on time and with your thoughful note.

Involve your CSR’s, customer service representatives, with the tools to help them communicate more often and provide exceptional customer service. They can quickly view the key interests, past issues and resolutions, and open opportunities from their CRM system. Make that last customer experience encounter memorable by putting a smile on their face.

Build your referral network and engage your current customer base. A new look at your customers as key referrals of your valued services and products will produce new warm prospects and at the same time enhance customer retention.

Step 2: Go after “Lost Customers”

Setup some type of system to track every customer activity.

Psst…. a contact management system like Sage ACT! or full fledge CRM system like Sage SalesLogix is a great place to start.

Whenever one goes missing from some time, send a letter and a great offer, make a phone call and find out WHY they are no longer purchasing.

A good CRM system will provide the ability to query all customers who have not had an email send to them, an on site meeting, a phone call or a direct mail piece sent for a given number of days. Run this listing and get back in touch.

Better yet have a “Save the customer” department.

What are some ways you could use to build customer retention on purpose?

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