Customer Service vs. Retention

[H. M. Nasim]

Customer service helps retain the customers that marketing spent their budget obtaining in the first place.

In addition, spending some of the budgets on customer service results in making existing customers happy, which is less of a cost than acquiring new customers.

Research from Bain & Company has shown that acquiring a new customer actually costs 6 to 7 times more than efforts spent on customer service and customer retention.

However, having a "customer retention" department can also become a problem for your company if you are only worried about retaining them as a customer when they have a problem and want to leave.

Rather than waiting until a contract is up and rather than waiting until a problem arises, take the time to make the effort to retain your customers before they want to leave. This way, they won't want to leave in the first place.

Have you ever felt insulted or ripped off if you decide to cancel a monthly service and the retention department offers you a lower rate to stay?

At that point, most customers or clients have already made up their mind the experience leaves a bad taste in their mouth. Many adopt the feeling "if you were going to offer me a discount, why not offer it before I wanted to leave?"

If available in your budget, offer customers 3 or 6-month special offers, instead of waiting until they decide to cancel.

[H. M. Nasim]

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