If your business is losing customers, it’s time to do something about it and fast. Here are 5 reasons your customer retention strategy is failing and what you can do to turn it around.
1. You’re not providing enough value
This is the number one reason your customer retention strategy is failing. It’s NEVER about price but always that your customer doesn’t see the value in you. Think about the last time you made a purchase. Did you purchase the item because it was the cheapest or because it was the best value for money? You might think this is the same thing but in fact there is a huge difference.
The price is what your prospect pays and the value is what they get.
If they stop seeing the value in your product or service, they’ll look elsewhere to a company that can provide them with better value.
What can you do to change this?
Start providing more value to your customers. This doesn’t mean lowering your price but offering them more for the price they pay
First, you must understand what value looks like for your customers. This means getting to know them, asking for their feedback and surveying them regularly. This enables you to understand what is important to the majority of your customers. Is it customer service? Is it a particular feature of your product? Or are there areas that you need to improve on? Use this feedback to make developments to your product or service and ensure you are constantly providing great value for money.
2. Your customer service isn’t up to scratch
“76% of UK adults say a positive customer experience is more important than the product” (Lithium) therefore, if your customer service isn’t up to scratch, your customers will look to another company and find a better service elsewhere.
What can you do to change this?
Concentrating on your customer service and investing in the right people for your customer care team is key. Passion and enthusiasm for not just your product but also for helping your customers is a crucial attribute that every member of your customer care team should possess. According to statistics, “Only 1 out of 26 unhappy customers complain. The rest churn.” Therefore, again, surveying your customers and asking for feedback is important to ensure your customers have the opportunity to make a complaint and you have the opportunity to resolve it before they decide to leave.
Complaints should be handled with the utmost respect and professionalism and your team should do all they can to resolve the issue in a timely manner. Customers realise that mistakes are made and if they feel that their complaint is handled sufficiently, then 9 times out of 10, they will come back to you.
3. Your service is inconsistent
Customers value consistency in not only the quality of your product but also the service you provide. Your product may not be up there with some of the best inventions in the world, however if it’s consistent, your customers will remain happy because you’ll be meeting their expectations.
Take McDonalds for example, they don’t make the best quality burgers but no matter where you go in the world, the Big Mac is exactly the same. If one day, you were served a Big Mac that was missing the cheese, or even the lettuce- you’d be disappointed.
What can you do to change this?
Don’t just make the customer’s first experience incredible, ensure that you replicate that experience again and again. Ensure you have processes in place that your whole team follows. Strict processes are what made McDonalds one of the most successful companies in the world!
4. Your product doesn’t solve a problem
If your product or service solves a problem for your customer, they will continue to buy from you, however this will change the moment you stop solving a problem and your customers are likely to churn.
What can you do to change this?
Be honest in your marketing. You will only shoot yourself in the foot later down the line if you say you can solve a particular problem that actually, you can’t. Under promise and over deliver.
Your customer’s needs are likely to change and evolve, so it’s important to keep up to date with them to ensure you are still hitting a pain point and whether you can make any improvements to your product or service that will ensure you continue to solve their problems.
5. You’ve stopped communicating
As mentioned above, keeping in touch with your customers to ensure you are still solving their problems is crucial. But not only that, by regularly communicating with your customers, you remind them that you’re still there, should they need you.
Too many businesses make a sale and that’s that. They stop communicating. But what if that communication continued? They’d see a huge increase in sales because they’d remain at the forefront of the customer’s mind.
What can you do to change this?
Have an automated follow up strategy. After a purchase has been made, send an email to thank your customer for making a purchase. Then, a week later, ask how they’re getting on. Do they need any help with anything? A week after that, ask for their feedback. Then, send them an exclusive offer as a thank you. After this, continue to provide value to them by sending them content that they will find useful or entertaining.
This is just one strategy; however the possibilities are endless and a small amount of effort will get you huge results!
