Customer Retention Perspectives (October 2017)

This is our first blog on Customer Retention Perspectives. These are some of the best resources compiled by our analyst team for busy customer retention professionals like yourself!

 

Customer Retention is the Unsung Hero of Business Growth

Customer relationships are a bit like gardens. Once you plant those seeds, you’ve got to put some effort into helping them flourish. After all, customer retention is the bread and butter (or water and sunlight to keep the gardening analogy going) of the small business world. We all know that, in theory, it’s cheaper to keep our existing customer relationships healthy and strong than to set out to acquire new ones, and easier to successfully pitch products and services to them as well.

While every business, customer and product is different, the good news is there are tried and true tactics for organizational success (and even growth) through customer retention.

Why You Should Be Focusing on Customer Retention, Not Acquisition

It is only natural to be continually on the lookout for ways to lure the next potential customer, but focusing too hard on acquisition may be to your detriment. According to numbers procured by Invesp, 44% of companies admit they focus more on acquisition than retention, and only 18 percent claim to focus more on retention. However, the same research points to the idea that customer retention is far more financially sound.

5 Ways to Drive Customer Retention Actions

Standard churn prediction models rely on structured data such as customers’ demographics and purchase histories. VOZIQ’s predictive text analytics solutions reduce the time-to-value by going one step beyond these common churn reduction approaches.

Here are the 5 ways using which VOZIQ reduces customer churn significantly:

  1. Detect Churn Risk as It Emerges with Dynamic Churn Scores
  2. Enhance Customer Contact Rate with Risk-Based Intelligent Call Routing
  3. Improve Sales Effectiveness with Service-to-Sales Model
  4. Enhance Marketing Effectiveness with Risk-Aware Marketing
  5. Create Company-Wide Risk Awareness

The 4 Keys To Boosting Your Customer Retention

According to Bain & Company, attracting a new customer costs your business 6 to 7 times more than retaining an existing one. You need to do what you can to continuously earn your customers’ loyalty – never underestimate the value of retention. Here are four keys to achieving the level of customer retention you need to boost your top line:

  1. Know your customers better than they know themselves
  2. Implement feedback systems
  3. Go beyond nice and polite
  4. Provide anticipatory service

Give Your Customer Retention Strategy the White Glove Test

Nuances can be difficult to see, let alone measure. Is that why business leaders seem to be doing their best to only respond to metrics? So, many companies are dependent on metrics alone that they often miss small problems that lurk in the shadows, waiting for their chance to grow to devastating proportions.

Have you given your customer experience a white glove test to find out which part of the customer journey needs some tidying up?

We hope that you had a great time reading these popular articles on Customer Retention.

Let us know your suggestions and any useful articles we may have missed in the comments below.

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