Importance of Customer Retention Strategy for Your Business
Importance of Customer Retention Strategy for Your Business

Importance of Customer Retention Strategy for Your Business

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Importance of Customer Retention Strategy for Your Business

Customer-Retention

No matter if you are a start up or an established organization, your core focus is always on growth. By growth, I mean the acquisition of more customers or more clients that can enhance the revenue of your business. Most businesses ignore the fact that they lose a handful of customers each month as long as they keep on acquiring new ones. But, it is time for businesses of all sizes to take a good long look at this strategy. It is time for them to recognize the need for a good customer retention strategy.

The most important thing here is to realize why exactly is customer retention so very important. Below are just a few of the reasons –

 

Avoiding Bad Publicity

We can all place ourselves in the shoes of our customers. We all, at some point, have faced bad service from a company. When customers are unhappy with you and they stop using your services, they are going to let you know about it. They will go to your social media pages and write negative comments, they will go to review sites and really tear into you.

All this creates a very negative publicity for your company. You probably spend a lot of money on marketing and good PR. However, all that time, effort and many go down the drain when your customers are all over the internet advising other not to choose your service.

Existing Customers Buy More

Logically, your existing customers have already chosen your services over others. They have given you their hard earned money and have started upon a journey with you. If these customers are retained, chances are they will continue to spend more money, by continuing to use your services or even upgrade to a more expensive service plan, whatever it may be.

So, while you are busy trying to get other customers to trust your service or product and give you their money, think about the people that already do. Would it not be easier to increase profits by retaining them?

More cost effective

Acquiring new customers is a costly affair. You spend on advertising, promotions, and sales. Then, you have to wait to earn back the money you invested as the sales cycle may be too long for certain services or products.

On the other hand, existing customers can be used to bring in more revenue by up-selling to them or using a referrer scheme through which they can recommend you to their friends and family. You do not have to spend a lot and you earn your money back quicker.

Retaining Customers is Not Difficult

What do customers really want? They mainly want two things –

1.Good service

2.Good customer service

If you give them these two things, you will not need to put in any extra effort in trying to retain customers. An area where most companies struggle with is customer service. Their in-house teams are simply unable to cope with the demands of the customers. Some companies cannot bear the expenses and the infrastructure needed for this process. They rather focus on their core objectives than spend any time, effort or money on customer service.

In such a situation, outsourcing customer service to an outsourcing company can not only take this burden off you, it also ensures your customers will be handled by trained customer service professionals. This will lead to better customer retention.

 

Now that you understand the need and importance of customer retention, what comes next is the actual execution of this strategy.

Listen to your staff

Your company’s employees that spend a good part of their day interacting with customers know more about what they want than you would, sitting in your corner office. You need to take feedback from your staff and then develop a customer engagement strategy accordingly.

Listen to your customers

As previously stated, when customers are unhappy, they voice their opinions. A wise businessman is the one that listens to these initial complaints and takes corrective measures to ensure whatever the customers do not like about your service gets taken care of before it’s too late.

Outsource Customer Retention Process

A customer retention process is an outbound call center service where customers who have decided to leave your service are contacted by agents and are convinced to stay with the company. This is not done in any abrasive manner. Agents listen to the problems faced by the customers and then suggest solutions or better plans or even offer service at a discounted price. All this to ensure that customers continue to use their services.

 

Using Octopus Tech’s outbound call center services in India, you can outsource your customer retention process to us as our solutions are not only cost effective but our dedicated team of customer retention agents will ensure your customers strongly reconsider leaving your services. Our success rate speaks for itself.

To start your customer retention journey with Octopus Tech, contact us today.