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Importance of retention for your Company?

Importance of retention for your Company?

As a company what questions do you need the answers to and what actions do you need to take to achieve this.

Retention rate is a very clear indicator of where your customers are and what they are thinking about your Company. Clear advantages of a high retention rate are

  1. You have minimal spending on advertising which can be very costly.
  2. It shows that you are leaving your customers with the right impression.
  3. Your colleagues ( your staff) are reflecting the same message that you have the passion for namely your Business
  4. Probability of selling to an existing customer is 60-70% as opposed to a new prospect it is 5-20% (source Marketing Metrics)

These facts speak for themselves but there needs to be systems in place to achieve this. Julian Richer mentions this as he states “The primary measure of a business’ success should be customer satisfaction, not profits. Profits are simply an indicator that you are getting customer service right.”

It may sound strange to say that in this internet/mobile friendly world the human aspect of the Business plays a vital role in the longevity of the Business. This includes your colleagues (team members), customers (fans) and all the people you deal with getting your product to your Customers (fans).

It has to be long term thinking that rather than only short term cost saving exercise.  It sometimes seems expensive at the time to say train and motivate your colleagues but in the long term it brings dividend by increasing your customer (fan) numbers. It is also worth investing in building that relationship with your customers (fans). These are just two factors that can bring massive rewards there are many more and they will differ in dependant on the industry and who your target customers (fans) are.

Remember 78% of customers will not purchase if they have poor service experience (source American Express).

You have many ways you touch your customers (fans) and it should always reflect excellent customer service. Here is a graph to illustrate why Customer Service and Retention are the Key drivers for any Business.

 

On that note I would like to say we have teamed with the excellent customer centric contact centre that can assist in this matter. Please do not hesitate to contact me in a method that is suitable for you.

shila@shinaroutsourcing.com

Phone 020 3893 8101

Website www.shinaroutsourcing.com