Customer retention is an organization’s ability to create customer loyalty by providing the systems, processes and support to not only keep a customer happy but to also transition them into an advocate for the organization who is not only loyal but also tells and recruits others.
Customer retention should be part of a comprehensive customer satisfaction strategy. Having a good understanding of what the customer wants and putting systems and processes in place to not only meet those needs but to exceed those expectations and delight the customer are what strategy is about.
There are five levels of customer satisfaction:
Not Satisfied
Needs are not being met and customer looks to other organizations to meet their needs. They also share their dissatisfaction with others in an attempt to protect others from a less than satisfactory experience.
Slightly Satisfied
Some aspects of expectations are being met but some are not. A slightly satisfied customer may return but may go somewhere else if offered a better service.
Satisfied
A satisfied customer is one who gets what they expect. Nothing more. Nothing less.
Very satisfied
A very satisfied customer not only gets their needs met but may experience some unexpected surprises that enhance their satisfaction.
Extremely satisfied
An extremely satisfied customer has an experience that consistently exceeds all expectations and has wow factors associated with the experience. They are so excited about the service they received that they become an advocate for the organization and often recruit new customers because they want to share the positive experience.
So why is customer retention so important?
Keeping loyal customers helps to establish a solid customer base. It can also affect the bottom line. Data suggests that it is much more expensive to win a new customer than it is to keep current customers. Once a solid customer base is established, it is the foundation to grow the customer base and ultimately gain a larger percentage of the market share. Losing current customers as new customers are being established slows the market share growth cycle down.
Some organizations incent customers with customer loyalty programs such as frequent flier miles, discount coupons or other perks associated with doing business with an organization. While these programs are seen as positive by customers, they are not enough to keep customers who are not satisfied.
For this reason, understanding who your customer is, what the customer wants and creating systems and processes to meet those expectations is the foundation for any successful organization. If you can’t keep your customers happy, there is always someone down the street who will.
Organizations who fail to have a structured customer satisfaction and retention plan as part of their organizational strategy is simply handing their customers off to their competitors. It is poor strategy and management to not pay attention to this critical aspect of business management.
So what are some things you do to exceed the expectations of your customers?
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The information you leave for readers is very detailed and self explanatory. Keep it up by providing more.