One Secret To Achieve Outrageous Customer Retention


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There is one secret that successful companies use to keep their customers outrageously loyal. Actually, there are many keys to customer loyalty but this article will only address one. Let’s don’t debate the word “secret” either because it’s not really a “secret” per se, just a customer service tactic that is not used often enough.

In case you don’t want to read this entire post, I’ll reveal that the “secret” we are discussing today is “refunds.” Yes, giving the customer money back when they are not expecting it is a sure way to keep them coming back.

You can apply this tactic to any kind of service: legal, accounting, engineering, plumbing, teaching, swimming, etc. Here’s an example of how this works beautifully.

We had used a plumbing company once before to install a new water heater. The entire project went very well. They were responsible about getting to our home when they said they would. We seemed to communicate quite well. In other words, they let me know they understood our requests and our needs. They provided us with a thorough estimate. Once they started the work, they kept the work area clean and did all the things they said they would. They were respectful to us, respectful to each other (there were two plumbers present), and respectful to our home. We also liked them but that wasn’t necessary.

The water heater works beautifully and is everything they said it would be. All fine and good.

One year later we needed another plumbing project done in our home. We didn’t hesitate to call the same plumbing company again, hoping we would get the same positive treatment. This time was different.

They did all the same things about showing up on time, providing an estimate, respecting us and our home, etc. They also did a bang up job at installing some water lines that only a contortionist could get to. They did a particularly good job with big space constraints. When the job was over I reached for my check and was pleased to pay them their due. The plumber said, “This job didn’t take us quite as long to complete as we had estimated so your total is actually $20 less than what we estimated.”

Do you see what just happened? First, I was completely ready and willing to pay the full estimated amount, which we thought was competitive and fair. But this plumbing company went beyond normal service expectations by charging me less than what I had expected.

What are the chances I will be calling this plumbing company – and ONLY this plumbing company – next time I need their services? You guessed it. I am their enthusiastic loyal customer, all because of a simple refund when I least expected it.

Now the secret is out – so you can use it.

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Darcie Davis
A career focused on finding the factors that inspire customer/client retention was shaped from, often naively, relentlessly asking questions. I am the founder of HUDDLE Sessions for Women which offer pop-up advisory boards.


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