5 Ways to Guarantee Customer Loyalty and Retention by InsideView

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5 Ways to Guarantee Customer Loyalty and Retention
by InsideView

shutterstock_94460566Customer churn is the biggest problem facing every business, and while there's no magic solution for ensuring complete customer retention, there are processes that you can put in place to decrease churn. If you're ready and willing to put in the effort, then these 5 key tricks for achieving effective customer retention will help you build a more loyal and satisfied customer base.

1) Pay Attention to Customer Feedback

Many companies make the mistake of not listening closely to their customers. If you want to break the customer churn cycle, then make relationship management your number one priority, which includes paying attention to and responding immediately to customer feedback. Customers will stick around for sure if they know their concerns are addressed within hours instead of days or weeks.

2) Keep Detailed and Updated Records on Every Customer Interaction

Detailed customer intelligence is key to retaining their business. Without it, your sales team is in the dark. Whether you're using a CRM system or plain old spreadsheets and email, make sure that every interaction is recorded in detail. Nothing turns off customers more than the impression that you have no idea who they are and why they're calling you, so make sure that processes are in place to guarantee that sales intelligence is as detailed as possible.

3) Leverage a Rewards or Loyalty Program

The easiest way to improve customer retention is to employ a rewards or loyalty program. It encourages customers to stick around because all they have to do is X, Y, and Z before they reach their reward. Take Starbucks, for example. Their rewards plan gives customers a "star" for every drink they buy. Once they've earned 12 stars, they receive a free drink or food item. Not all of us sell something as essential as coffee, and customer loyalty programs tend to be more popular with B2C brands than with B2B brands. However, industry standards are hardly a reason not to experiment with a customer loyalty program. Perhaps you award one free license per account to customers that have purchased your products for a year or more, or perhaps you offer a discount on a new product to customers only.

4) Don't Wait for Your Customers to Contact You

You need to know what your customers want, so don't wait for them to tell you where you're falling short. Instead, do regular outreach to gauge how they feel about your company, services, and products, and use their feedback as a guide for how to proceed. It will decrease churn, and improve sales productivity at the same time because your team will know where they need to focus their effort.

5) Show Your Appreciation For Their Business

Everyone wants to know that they're appreciated, especially your customers. Let them know that their business is important to you, and that they're not just another name on a long list of clients. By adding that personal touch, you build loyalty with them, which in turn creates more up-sell and cross-sell business, as well as increasing renewal rates.

Don't Forget...

Your business cannot succeed without your customers, so there's no question that every company needs to focus on improving relationship management. As long as you don't forget that, and your sales team puts in the proper effort to make customers feel special, then effective customer retention is within your reach.