Customer Retention Bad Practice
Posted By: DSG
In a bid keep an established customer base that has already been invested in, engaged and interested in a brand, customer retention strategies should be cultivated with as much vigour as new business sales strategies. A successful customer retention strategy takes its lead from the principle customer experience premise of customer – centricity and a new-found promise of placing customer expectation and need gratification at the crown of all business strategies. Consumer evolution has created the prerequisite for CX strategies to deliver a more personalised and engaging customer experience journey geared to include retention strategies.
Underpinned by a customer –centric approach, customer retention efforts should focus on nurturing lasting and sustainable relationships with customers whereby reciprocity, as with all inter-personal relationships, is the key to a lasting communion.
Building any relationship, is a personalised effort that addresses the very specific and unique needs of affiliates involved. While every individual presents with individual expectations, best practice customer retention strategies can address most prospects.
To follow are 3 Best Practice Customer Retention Strategies that can be used to nurture customer relationships and prevent costly customer attrition.
Buyer Persona Profiling
The more you understand about converted customers, who they are, what motivates their decisions and shapes their belief systems, the better equipped you will be at offering a customer centric retention strategy, specifically tailored to post purchase needs. Characteristics that distinguish attributes of each customer personas will act as the primer for furthering sales efforts as well as highlighting up and cross sell opportunities.
Purchase intent Vs. Satisfaction
Customer satisfaction can be somewhat of an ambiguous measure especially when researching retention tactics. Reviewing customer satisfaction data may assist in shaping products and service offerings as well as influence the overall customer relationship however satisfaction scores are not a reflection of a customer’s future intent to purchase. Even if the original transaction resulted in initial customer satisfaction, through Voice of the Customer (VoC) surveys that are specifically focused on future intent or buying behaviour will reflect a more relevant result that speaks directly to shaping retention strategies.
By asking questions like, “Would you use our service / buy our product again” and “Would you refer our service / product to friends and family” will reveal more weighty influence on customer retention.
Customer Lifetime Value
A comprehensive retention strategy must equate and take into account the value of or “net worth” that a converted customer translates into throughout the CX lifecycle. By examining the amount or value that each customer will potentially contribute to your bottom line, based on behaviour, spending habits and future purchase intent will provide a spring board from which retention strategies are developed.