Being a student of management, you may certainly obtain a desire for becoming a customer relationship officer which needs perfect and compact concept on customer retention which is going to be discussed below for increasing your ideas.
What iscustomer retention?
Customer retention is a method used by companies to reduce defections in their goods so that their customers donâ€™t get a chance to detect any problem in their goods. This process of customer retention starts when a company starts developing reputation among its customers and this reputation stays there for the lifetime.
A company should have the ability of not only attracting new customers to their product but also to provide good services to their existing customers so that its reputation is not hampered for any reason. Customer retention has two meaning one to give its customer what they are expecting from your brand and the other is to increase their expectations by offering them new and updated products. This will help your company to earn the loyalty of your customer.
Customer retention method requires a lot of hard work as it is not at all easy to attract clients or customers towards your brand. There are many ways used in order to attract customers like social media, online websites, and other offline benefits like advertisements, hoardings, etc. It should be always kept in mind that you should always value your old customers because they were the one who helped your business to develop.
So while creating new customers the needs of old customers should always e kept in mind. These old clients will help you to get new customer by referring your brand to their friends and family. Customer retention helps your company to earn more profit as compared to other strategies. The actual measurement of customer retention techniques is done by taking the percentage value of long term customers.
Customer retention is one of the most important topics that are being taught to any management student. Like other management strategies and method this topic also involves a lot of things that the students should be clear with to become an excellent market analyst or businessmen in future. There are many assignment help companies like us available online to help the students solve their problems and clear all their queries.
5 customer retention techniques:
Customer retention is a very important method that should be carried out in order to help your business earn more profit; helps reduce cost, and allow them to know the loyalty of their customers. It has been estimated that a 5% increase in retention will exceed the profit of your business up to 25%. In customer retention your main focus should be your old customers as they will help you earn greater value in market. Here are some methods which will help your business to earn such values and increase revenue. Some of them are as follows:
- Firstly, the business men should know their goals clearly and set them so that they donâ€™t face any confusion later on. The company needs to do proper research on their customer and know what they basically need and then set a strategy according to them. After you know their needs then design a strategy that will help you to make those products that will best suit your customer.
- Secondly, it is very important that you keep a look at your existing customer and keep an account of it. It is generally seen that the companies focus more on making new customers and do not pay attention to the old customers that they are losing. So it is important that you stop this leakage as a first step to customer retention. It is successful in doing this then your business will grow at a very fast rate because now you will not lose your old customers who were the base of your development.
- Thirdly, it is very important that you go on continuing your selling process without stopping in between. If your sale has just started donâ€™t just ignore it and sit back because this is just the beginning of your work. You have to make your client feel that they have taken a right decision after choosing your brand. Thank them that they have selected you and make them feel that you actually care about them. This will built a level of trust between you and your customer and they will become loyal to your company.
- Fourthly, try and focus on customers who already know you and not on them who will not even bother to listen to any of your promotional activities. Keep on reminding your customers that you still exist and keep on contacting them with your new offers and discounts going on during a particular time. Reach your old customers and know their reason why they are not buying your products anymore. Work on the defects pointed by your customer and then approach them in a very friendly and respectful manner. This will help increase your sale and your revenue as well.
- Fifthly, and the most important is to provide your customer with an extraordinary service. Try and satisfy your customer as much as possible with all your gesture and friendly behaviour. If they are happy then they will tell their friends and family members about your company and this will help you earn more new customers automatically. Some of the key elements of such excellent service are:
- Each and every employee should dedicate their service properly.
- Always provide an immediate response to any of the question that your client wants.
- Try and deliver all your products on time.
- All your products should be tested before delivery so that the product is free from any kinds of defects.
- Hire people who are smart enough to deliver the products safely and quickly.
These are some of the important techniques that will help you with perfect customer retention and help you earn a lot of profit. There is one more strategy also that allows that company to aim at their customer rather than the products like customer centric methods.