• CUSTOMER SERVICE FREE TIPS   AND TOOLS

>> Customer Service Sins

>> Customer Service, Even Online

>> Customer Service Loyalty

>> Customers Say the Darndest       Things

>> Customer Retention Simplified

• TRAINING PROGRAMS

>> Customer Service Skills

>> Exceptional Customer Service

>> Managing Customer Service

>> Telephone Customer Service

>> IT Customer Service

>> Coaching for Customer Service

• CUSTOMER SERVICE
  TRAINING QUOTE

"I consider my ability to arouse enthusiasm among men the greatest asset I possess. The way to develop the best that is in a man is by appreciation and encouragement."
Charles Schwab

Customer Service Institute

Customer Retention - A Simplified Approach

Retention is definitely the "buzz" word for businesses today. Customer retention has business leader's attention and leaving most wondering how other businesses are approaching this seemingly complex business function. A web search of "customer retention" results in thousands of available web sites all with the real solutions for customer retention.

Researchers, analysts, and consultants have developed a multiple selection of theories, programs, and practices for customer retention. Businesses today readily share their experience in improving customer retention. Most solutions point to business culture, staff training, and sales methodology along with tracking and responding to customer demographics. In simple terms, customer retention is all about the customer and the customer's experience.

There is a lot of information available saying much the same thing - Customer Retention focus is imperative to a business existence. This information is absolutely correct! Profits and growth are reliant on both customer and employee retention within an organization. The question is how can today's small businesses compete with the sophistication of big corporate America?

These powerful companies have the capability of hiring teams of "retention or relationship experts", installing sophisticated CRM programs, and providing employee training and coaching programs; while at the same time offering lower prices. It's time small businesses allow big businesses to keep those customers who are only shopping for the lowest price. There are plenty more customers looking for service above price! The focus for small business should be value, not necessarily the lowest price.

The reality is a small business, whether retail or service, can have the advantage over big business, if they can understand one logical concept: small businesses have the upper hand in capturing their market share through true customer retention and positive customer experience initiatives.

This is so simple it is easily overlooked. The personal touch of a small business positively affects customer retention. This is why so many larger businesses have chosen franchising, direct marketing or network marketing to sell their product or service. What they are really doing is giving the consumer and businesses a personal experience.

Consumers and businesses place value on added service. Who doesn't appreciate an owner, sales rep, customer service rep, or agent showing sincerity and interest in the customer during the sales process and life cycle of the customer? So even if a product or service is slightly more expensive, purchasers are willing to invest in value added to the product or service. We expect more when we pay more. The key to success is a positive customer experience - the simplified approach to retention.

How can a positive customer experience be viewed as a simple approach? This happens when owners and agents do what they do best, pass along passion and vision of their business through service to their customers. So how can a business ensure a positive customer experience? Follow this 7-step personal touch process:

• Offer only proven & quality services and/or products
• Demonstrate customer appreciation
• Provide responsive and pro-active customer service
• Give instruction on how to get the most use from products and/or service
• Share testimonials from customers with other customers and potential customers
• Educate the customer about the industry or market and about the value of the business
• Invite customer's opinion and feedback on products and/or services

Small businesses can deliver a positive customer experience by utilizing all sources of communication-staff, letters, phone calls (inbound and outbound), web site, emails and event attendance. Customer experience begins during the sales process. Marketing and selling the product and service must sell the expectation of a positive experience. This is where businesses undersell its business, the value they offer: why should a consumer or business buy from them and not from someone else? After the sale it is critical to meet and exceed the expected experience. Service must never deviate from the marketing concepts. Customers should feel like they got their money's worth.

Customer retention does not have to cost a fortune, however it must be pointed out "you get what you pay for". Companies are spending extreme amounts of time and money to obtain new customers, but yet are unwilling to spend a fraction of that amount to keep their existing, PAYING customers. Customers are a great investment-before and after the sale! When businesses are committed to positive customer experience, retention improves; referrals improve; sales increase. See how simple?

CRMToday