How to manage customer retention

Customers are the lifeblood of business, so it pays to manage your customer retention. 

"It's much easier to keep the customers you've got than go out and get new ones," says David Simmonds, Managing Director at JIWA Financials. "So it's up to a business to give them reasons to stay."

And the best way to ensure continued loyalty to your business is by providing outstanding customer service.

Put yourself in their shoes

Good customer service combines science with common sense. How would you feel if you were on the other end of the transaction? Would you be pleased with the service you're getting? If not, then you risk losing the customer. After all, would you stay loyal to someone who didn't meet your expectations? 

Speaking of expectations, always aim to exceed them. Try to pleasantly surprise clients with the level of customer service they are receiving.

A two-way street 

A good way to ensure you stay in touch with the needs of your customers is to keep the lines of communication open. 

"Ask them if they're happy with the service they're getting, or if there's anything they would change," says David. "People appreciate the chance to have a dialogue." 

Whether using follow-up courtesy calls, customer surveys or corporate events like conferences to seek their views, encourage your customers to be frank. Don't be afraid of their honesty - it's better to know their grievances than to lose them altogether. 

The importance of customer service

Keeping customers satisfied through exemplary customer service means they are more likely to stay loyal to you. This means: 

• regular income for your business
• the ability to forward plan
• recommendations to other customers
• gaining a reputation as a business that cares about customers
• expansion and growth with confidence.

Old but true

Sometimes it can be hard, but there's an old motto about customer service that is still true today - 'The customer is always right.' When faced with a disgruntled customer, don't make excuses; absorb any criticism as a demonstration that things - even little things - must change.

An apology can also go a long way toward turning a negative experience into a positive one. If necessary, find a way to compensate people for any difficulties caused, whether by a credit note or some complementary movie tickets.

Keeping your customers loyal will be well worth whatever short-term pain it causes you.

It's strategies like these that will help you manage customer retention and attract new leads. Discuss with a customer service consultant today how you can nurture these important relationships and blossom as a business.