Adopting the “customer is always right” attitude helps to improve customer retention rate.
Reports say that for firms, customer retention is easier and more cost-effective than working continually towards producing new leads. Harvard business school’s study suggests that a mere 5% increase in the rate of customer retention rate generates 25% to 95% more earnings. On the other hand, dissatisfied customers get depressed very fast. Here are a few stats that you like to have a look at:
- A small number, i.e., just 12 positive customer interactions with the company, outweighs one negative impression left behind by one dissatisfied customer whose problem couldn’t be solved.
- Stats show that at least 60% of US consumers changed their purchasing decision because of impaired customer service experience. As a result, the US retailers had to bear a collective sales loss of approximately $83 billion.
- Accenture reports claim that dissatisfactory customer service led 52% of customers to switch to other service providers.
Hence, customer retention depends on how good a customer service process you have. Listening to them carefully and working to meet customer requirements can improve customer experience remarkably.
In this article, we will discuss how you can harness customer feedback for a better customer retention rate:
#1 Know what your customers are looking for: offer personalized content to live up to their expectations
Again, let’s go back to the stats that strongly supports the fact that a modern buyer is more likely to open an email having personalized subject lines.
Stats from Campaign Monitor show that emails having personalized subject lines are 26% more attractive than others.
The results suggest that, for marketers, it is a necessity to work on messaging more than ever because it is a part of the customer retention management process.
Let us have a look at the questions:
- Which content type resonates well with the customers and holds immense value, according to them?
- Is the personalized content enough and satisfactorily aligned with what an individual wants?
- How good is our ranking in the minds of the existing customers and prospects?
Answers to these questions need analysis of your audiences’ needs. Many companies conduct marketing surveys frequently to understand and upgrade their offerings as per the customers’ requirements. The combined power of your CRM system and email marketing campaign can simplify the process.
#2 Maximize the use of customer survey results.
Building a brand image is not child’s play; it takes time. You can achieve it faster by helping your customers realize that you are listening to them and acting according to their expectations.
Here are a few customer surveys that will help you understand the exclusive needs of your customers:
- NPS survey: the brilliant tool to gauge customer trust in your brand and their relationship with your company: It measures how frequently a customer is likely to talk about your brand to a friend or any other family member.
- Feedback about your product: It sheds light on issues and concerns that your product might have. You need to gather information by asking for feedback and rectifying the problems. The results will help you understand whether you need to change the marketing strategy or not, spot the obstacles preventing the customers from trusting your brand, and more. These problems are long-term ones that can cause you to lose money.
- Customer Satisfaction Surveys (CSAT): These help you to fathom customer sentiment. For instance, understanding the customer reaction after interacting with a customer service executive. Whether they seem happy or sad with the resolution, the behavior of the representative, and more. By tracking the CSAT score trends, your team members can find ways to improve customer experience.
#3 Pay attention to unsatisfied customers
Unsatisfied customers can offer positive insights. The benefits of reaching out to an unsatisfied customer can tell you a lot about what’s going wrong:
- They will pinpoint all the problems they faced. This will help you avoid making the same mistakes in the future.
- Make use of the opportunity to bounce back. With a little bit of empathy and personalization, you can win the customer’s trust back.
Don’t be perplexed because of one negative customer experience. Talk to them and listen to the problems to take necessary actions. If you want to maintain the company’s reputation, face unhappy customers.
Follow these three simple yet effective ways to strengthen the customer retention management system. Many companies also pay attention to employee motivation management by offering reward schemes and training. They also provide them (employees) with an opportunity to grow as a professional. Being polite to the employee (after negative feedback from a customer about that particular individual) and analyzing the problem areas together can help revive the customer retention rate because employees are your asset!