What factors contribute to high retention of customers or clients? You’ve probably heard something along these lines before:
It costs five to ten times more to acquire a new member than it does to retain an existing one.
Sometimes it can cost up to 25 times more.
Customer retention has an absolute impact on the bottom line. An increase in retention increases loyalty, average customer spend and referrals.
It makes good business sense to focus on it.
We all know retention is important, what we need to do is give it a priority and fundamentally recognise that focusing on it makes a difference. To increase member retention, everyone must work together. Retention is everyone’s responsibility from the owner to your cleaning team.
Surely if you’re just selling more than you lose, you won’t have to worry about retention?
If you’re losing more members than you are gaining. Things aren’t going to last very long for you. Member retention is critical to the long-term success of your business.
The truth is that there is more to customer retention than just providing good service.
It’s about creating a process from the very beginning that fosters communication, trust, and mutual growth.
One Tribe Marketing has created the 10 C’s of Retention Model. This is a model that
- Customer service
One of the key parts of customer service is to be quick and efficient. Speed and efficiency will take you 90% there. The other 10% is about good communication and authenticity. If you stuff up – own it, say sorry and fix it.
Being consistent in everything you do builds trust. Clients know what to expect. They know they are going to get the same answer, no matter who they ask. Believe it or not, this counts for a lot. The way you can achieve this is by having clear processes and procedures for all aspects of your business and exceptional training for your team.
Consistency also includes brand consistency (link to branding article). No matter where your members go, they see your brand in the same way. If your members trust you, they will stay longer.
There is a quote that says “I’ve never met anyone who didn’t like the sound of their own name”
Using a customer’s name is one of the simplest ways to show you care, build rapport and establish a good relationship. Listen to your customers. Spend lots of time asking them for their feedback.
Caring about what they say builds competitive advantage and sets you apart.
Communication should be seen as an opportunity not a chore. Use all channels that suit your customer. Planning your communication across different channels is absolutely key.
You might like Pinterest but do your customers?
There are a plethora of Customer Relationship Management systems out there like Mailchimp, Hubspot and ActiveCampaign which can assist in automating your customer communication.
Do something you haven’t done before. Do something you have done before differently. Surprise and delight them in a creative way to make your brand memorable.
Do you capture your customer’s birthdays? If you do, this is an easy and simple one to get creative with. Just an acknowledgement of their birthday and a special discount or voucher can go a long way.
When you appreciate people they feel excited to be part of something bigger. A little thank you will go a long way.
Regconition and rewarding your customers will also make them feel cherished. You can do this by a simple rewards program for loyalty or repeat purchasing. You can recognise them because they are a “top fan” or for a goal they have achieved.
Make them feel loved and they will love you back.
People buy from those that they Know, Like and Trust. Getting your customers talking to each other about your product/service is one way to build these three elements. Bringing like-minded people together and recognising them in a community setting provides social proof and increases loyalty.
Show your customers you understand them and their pain points. An onboarding process is especially critical in establishing connection. Providing continuous education and valuable content will help them to feel connected to your brand.
- Complaints and cancellations
Bill Gates said “Your most unhappy customers are your greatest source of learning”. Customers who complain are actually willing to stay. Their feedback is gold and should be treated as such. It’s those customers that just leave without saying anything that are the hardest pill to swallow.
Build a mindset in your team about welcoming complaints and you will be amazed at how much you can learn and improve upon in your business.
- Customer reviews & testimonials
Proactively capturing these are integral to your retention strategy. Turning positive reviewers into brand ambassadors and using negative reviews to understand and address pain points. Make a habit of responding personally to every review, your customers will appreciate it.
If you have a great product/service then customer retention will “just happen”
One of top reasons for customers leaving is that they believe you no longer care.
A strong retention strategy will show them continually that you appreciate them and will turn them into a tribe of loyal advocates that will grow your both your brand and your bottom line.
For more information on how One Tribe Marketing can help you implement a strong retention strategy, reach out for a FREE 30 min chat.