Article Contributed by Sarah Landrum
According to KISSmetrics, it can cost 7 times as much to acquire a new customer as retain a current one. Add to that the fact that 71% of people end their business relationships because of poor customer service and 61% of them go to a competitor, and it becomes clear that keeping customers happy by providing excellent customer service and close relationships is vital to a healthy, thriving business.
Here are 10 tips you can use to achieve that goal.
- Make it Personal
No one likes to feel like he is just another face in the crowd. Make your relationship with key customers personal.
Form letters should use mail merge to personalize the name and even the last interaction you had with the customer.
Keep careful notes when talking with customers for future reference.
Take the time to reach out to key customers who bring you a lot of business. Take them to lunch, give them tickets to a big game, and pick up the phone just to see how they are doing.
- Fix Problems Fast
According to the Consumer Action Handbook, for every customer who complains about something, there are about 26 others who are just as unhappy. If a customer takes the time to bring an issue to your attention, you should not only act fast to fix the problem for that customer, but change whatever is needed for the 26 others who are not complaining. This might include:
- Changing the product
- Changing the delivery
- Changing your response system
- Take a Stand on Things Important to You
In a study by Harvard, consumers indicated one of the main reasons they related strongly to a brand was because of shared values, by about 64%. What does this mean for your company?
Strong family values? This is your target demographic.
A desire to improve the environment for future generations? Young people with the same goals.
Activist for an important cause? Who else is on board?
The key is to take a stand for things you believe in but not for things that are so controversial that they might push away the majority of your customer base.
- Reach Out on Special Occasions
It is fairly simple to keep track of anniversaries and birthdays. Track these dates in a calendar and send out cards to your customers on these days. If you don’t have time to write a personal note, assign the task to one of your employees.
This is where those notes you’ve kept on interactions come in handy to make the card a personal greeting and to let the customer know you care about him as a person.
If you get word someone is getting married, has a death in the family or some other big event, take the time to send a card, flowers or a personal note. This is the type of relationship building customers remember for years and that keeps them loyal to a company.
- Provide Quality Products – And Help Customers Use Them
Before you even engage in a transaction with a customer, you should look at the backside of the product you’re offering. Are they the absolute best quality they can be? Will they last for your customer?
Simply offering high-quality products will reduce the need for damage control and translate into happier customers. Happier customers are more likely to refer your product or service to other people.
Sometimes, though, that’s not enough. That’s why it’s important to engage with customers and offer additional services to enhance their experience with your company. One great way to do this is to provide resources that enhance the post-purchase experience for customers, such as articles or videos that inform customers how to select and use the products you offer. A great example is McElroy Metal University, a series of videos from McElroy Metal helping customers through the buying process with the intent of creating customer happiness.
- Get Feedback from Your Customers
Until you get honest feedback from your customers, it can be hard to see your own weaknesses as a company. To get the most honest feedback possible:
- Allow customers to respond anonymously to your surveys. Sometimes people won’t complain for fear it will hurt the business relationship or get them marked as a trouble maker.
- Offer several ways for the customer to respond. Make it simple to respond on a survey site, social media or by snail mail.
- Take the time to compile the feedback into a database. See which issues crop up most often and work on fixing those first. However, don’t ignore the smaller issues, either.
- Get the Entire Company Involved
Create a culture where customer service and retaining current customers is the number one priority. Think about how you can train your employees to have the same attitude about customers that you do.
HelpScout was able to improve its response time to customers by 340% by creating a support room that all of its employees could access. The ability to put the customer first and come up with creative solutions was vital to its success.
- Reward Customers
According to Inc.com, keeping those current customers happy increases profitability anywhere from 25-125%. Rewarding current and new customers with discounts, freebies and loyalty rewards goes a long way toward keeping customers happy. Here are a few examples:
- Offer loyalty cards — every so many purchases equals one free one.
- Offer rewards for referrals.
- Give new customers a freebie just for signing up or ordering.
- Create a Churn Database
Guy Nirpaz, CEO of Totango, shared on Mashable a brilliant idea about learning from your mistakes. It is inevitable at some point you are going to lose a customer. What matters is figuring out why that customer is leaving so you can use that information to retain the customers you still have.
If the customer leaving will provide the information, try to find out:
- Why he is leaving
- How long he has been a customer (you should have this info already)
- If he is going to a competitor and, if so, what attracted him to that competitor
- Create VIP Customers
In a study by both Harvard and Stanford universities that looked at voters, researchers found people relate to being given a positive label of some sort. The response received from them increases their response rate by about 15%.
This same concept can be applied to customers:
- Give your VIP group a label such as “Gold” or “Amazing.”
- Put your top customers in this group but also make it attainable for those who are new or not as loyal. You want them to strive to attain this status.
- Offer special incentives for your VIP group.
Utilizing just a few of these ideas will result in more loyal customers. Not only will you be better able to retain the customers you have, but you’ll have happy customers who will help you spread the word about your company.
