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Customer Service Information |
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How To Keep Your Customers Coming Back -- Understanding Customer Retention
Why do some businesses offer points, stamps or every tenth coffee for free? These businesses understand that a customer retention program is a fantastic way to ensure that customers keep coming back. The most recognized customer retention programs are those loyalty programs used by retailers, but this same principal can be applied to any business that wishes to maintain a loyal customer base. Ask yourself these simple questions. ?Does your business have a comprehensive retention strategy? ?Are you devoting a portion of your marketing budget to keeping current customers? If you answered no, then you are jeopardizing the long-term success of your business. Remember it is costs less to keep your current customers then it does to acquire new ones. That doesn't mean that you should quit spending on marketing attempts to acquire new customers, but you should invest some of your marketing budget on retention strategies. Consider the 80/20 rule which states 80% of your business income comes from just 20% of your customers. A good Customer Retention program will work to convert those occasional customers into "loyal customers" who spend more money on a more frequent basis. Customer retention doesn't just happen. Poor customer service can undermine even the best retention strategy. For a customer retention program to be truly successful, the business must look at their total operation to ensure every aspect of their business is aimed at keeping the customers they already have. Is the accounting department too abrasive when collecting overdue accounts? Is the receptionist chewing gum when answering the phone? Every contact with your customer has to be positive for any retention program to work. Depending on the type of business you operate, there are several possibilities in the type of customer retention program could develop: Frequent contact You can develop a program that provides regular, scheduled contact with customer or prospect (a drip campaign). For example, develop a (opt-in) newsletter campaign, letter campaign or important reminder campaign (oil change, domain renewal etc). This is an excellent approach for many service industries or for sales professionals such as real estate agents or car sales people or any other industries where there is a significant lapse in time between new purchases. You can keep your business name fresh in your clients mind so that they call you instinctively when it is time for the next purchase. Rewards Develop a "rewards" program such as points, free product or service or discounts earned by making. This is the retail rewards program most people are familiar with, but this type of retention program is often used in business to business relationships as well. You could develop a program that will offer cash back or a discount to businesses based on the volume of purchases annually. This type of program works particularly well if you have a diversified selection of products or services, and are looking to encourage your customers to purchase a broader range of your products or services Combination You could develop a Members only club that combines aspects from both the frequent contact and rewards program. The best retention programs are those that provide an opportunity for you to learn more about your clients and their spending habits. This is invaluable information that can easily give you a leg up on the competition. Š 2004-2005 Tanya Beaudoin o/a Office on Demand, All rights reserved. You are free to use this article in its entirety, as long as you include complete attribution, including live web site link. Please also notify Mrs. Beaudoin as to where the material will appear. The attribution should read: "Tanya Beaudoin, B.A. is a virtual assistant who specializes in e-solutions (including e-stationary) and administrative support for small businesses and non-profit organizations. Please visit Tanya's web site at http://www.officeondemand.ca for additional business related articles"
MORE RESOURCES: Pricing, AI, DPA, Customer Service Tools; Bill Emerson Interview; Training This Week; STRATMOR CD Workshop Mortgage News Daily AI Chatbots Are Ready to Talk to Customers. Sort of. The Wall Street Journal Samsung Electronics Canada Customer Service Wins Bronze in âBest Use of Omni Channel' at International CX Awards 2024 Yahoo Finance Qme secures $3M funding to streamline customer service across Africa Techpoint Africa Building Competitive Advantage in Customer Care Through AI The Business of Fashion 311 Customer Service Center City and County of San Francisco FTC Finalizes Order with H&R Block Requiring Them to Pay $7 Million and Overhaul Advertising and Customer Service Practices for 2025 and 2026 Tax Seasons Federal Trade Commission News Ikea expands integration with assembly services platform Chain Store Age JEA is inviting bids for 19-story downtown tower that used to be its headquarters The Florida Times-Union Consumers Demand Enterprises Modernize to Improve Ailing Customer Experience, Says Research Business Wire American Lamprecht Enhances Visibility for Air and Ocean Shipments Using Descartes Solution Supply Chain Dive Women in Fintech: A Conversation About Loyalty Ecosystems in Financial Services with Becky Hill Finovate Neterra Enhances Its Customer Service Monitoring System Total Telecom Gladly Named a Leader in Constellation ShortList⢠for Digital Customer Service and Support PR Newswire QueueKioskâ˘: Saving Thousands of Active-Duty Man Hours & Improving Customer Service at the MPF Office Kiosk Marketplace Finally, hard data on a real-world AI business use case: Itâs huge for customer service Sherwood News Liverpool reinvents customer service through digital platform ComputerWeekly.com Firm to expand customer service in Yorkshire with new service centre Golf Business News CSPI & Nutrition Action Customer Service CSPI Newsroom Textron Aviation to Open New Service Facility at Essendon Fields Airport, Expanding Capabilities in Australia Pittsburg Morning Sun Help Department of Taxation and Finance Six Game-Changing AI Customer Service and CX Strategies Hospitality Net Consumer Directed Personal Assistance Program (CDPAP) New York State Department of Health Cigna's customer-centric strategy could ripple across the sector Modern Healthcare Major AI Success Story: Giftify Achieves 40% Faster Customer Response Times with Enterprise AI StockTitan Contact Us About Your Bill myclearwater.com Customer Service Center apps.tampagov.net 311 - Birminghamâs Customer Service Center City of Birmingham (.gov) DESCO's meeting held to enhance customer service and power reliability The Business Standard 70% of customer service to rely on AI by 2028: Gartner Outsource Accelerator Customer Service & Support Hillsborough County (.gov) My experience as a Customer Service and Sales Intern Toby Shapiro's Experience at A.D. Sutton and Sons Chapman University Deltaâs annual profit-sharing day spotlights âpeople firstâ strategy The Atlanta Journal Constitution 3 Ways To Quickly Make $50 GOBankingRates Welcome to Riverside Public Utilities City of Riverside (.gov) Celebrate Customer Service Week City of Riverside (.gov) Which companies have the best customer service? Amazon, Shein, Costco among top-rated brands USA TODAY Con Edison Proposes Investments to Meet Growing Demand for Clean Energy, Enhance Customer Support T&D World Fulton County Recognized as a 2024 National Customer Service All Star Fulton County Government Contact Reverb Support Reverb Charter Names Robyn Tolva Senior Vice President, Customer Service Reliability | Charter Charter Communications America's Best Customer Service 2025 Newsweek 8 strategies for using AI for customer service in 2025 Sprout Social Attorney General Bonta Demands Better Customer Service for Californians California Department of Justice AI for Customer Service Market worth $47.82 Billion by 2030 - Exclusive Report by MarketsandMarkets⢠PR Newswire Can artificial intelligence rescue customer service? The Economist Permitsâcustomer services King County Lifeline Support for Affordable Communications Federal Communications Commission Department of Transportation Governor Tom Wolf President Biden Announces New Customer Service Actions, Targets Subscriptions and âDoom Loopsâ CX Today 11 key elements of excellent customer service Business.com Launch of New Districtwide Customer Service Platform The School District of Philadelphia Shep Hyken, HPU Customer Service Expert, Mentors Students and Staff High Point University Summer EBT | Department of Human Services Governor Tom Wolf How Intercom Achieves 86% Resolution Rates with Claude AI: A Customer Service Revolution - Anthropic |
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