Customer Retention Strategies

Customer Retention Strategies Lynn Hunsaker Strateg Customer Experience Mentor gic g p Author: • Metrics Yo Can Manage For Success ou • Customer Experience Improvement Momentum • Innovating Superior Customer Experience g www.ClearAction.biz See Creative Commons License: http://creativecommons.or rg/licenses/by-nc-nd/3.0/us/ © 2009 ClearAction. All rights reserved.

Why is it Hard to R Retain Customers? Offers Ours vs. Others O Oth Affinity Ours vs. Others Product Service Disappointment Disappointment Va alue Disappo ointment © 2009 ClearAction. All rights reserved.

Marketing Plan Includes Customer Retention? s Experience Spectrum Awareness Exploration / Expan nsion Commitment Dissolution Marketing • 4 Ps Realities Mix vs. vs Aspirations • Branding g Shared Interest: Sh d I t t - in Information • Commun nity - in Activity - from Commonality • Individua alization Message - Timing - Frequency • Interactiv vity - Content © 2009 ClearAction. All rights reserved.

Marketing Tools Include Customer Retention? e Awareness Exploration / Expans sion Commitment Dissolution Databa ase Present Comppetitors’ New/Emerging Customers Customers Customers Maintain Build Gain Bu uild Build Build Usage Usage Trial Volume Loyalty Loyalty Value V l Segmentation Experrience Pers sonas Predictive Modeling © 2009 ClearAction. All rights reserved.

Why is it Hard to R Retain Customers? Offers Ours vs. Others O Oth Affinity Ours vs. Others Product Service Disappointment Disappointment Va alue Disappo ointment © 2009 ClearAction. All rights reserved.

Priorities Reflect Trust-Builders? t #1 #2 2 #3 Product & Service Leadeership Treats Employees Quality Can Be Trusted Well #4 Value for the money #5 Stays within th spirit & letter of the law St ithi the i it l tt f th l #6 Strong financial future #7 Frequent communicatio about the state of its business on #8 Innovates new product services or ideas ts, #9 Creates & maintains lo ocal jobs #10 Gives time, money or r resources to public good #11 Strong commitment to protect the environment © 2009 ClearAction. All rights reserved.

Higher ROI by Acting on Constructive Feedback 0.41% 0 41% Revenue Growth 0.14% 0 14% Revenue Growth 1% 1% Reduction Increase of Negative of Positive Word-of-Mouth Word of Mouth Word-of-Mouth 300% ROI on redu ucing negative buzz compared to incre easing positive buzz -Lond School of Economics don Advo ocacy Drives Growth study © 2009 ClearAction. All rights reserved.

Customer Retention by D Delivering Brand Promise Culture Tools Prevention P Passion • Customer- • Marketing • Personas • Involvement centric Plans • Processes • Equity (non- • Policies transferable) t f bl ) • Trust • Budget • Proactive © 2009 ClearAction. All rights reserved.

Customer Retention by D Delivering Brand Promise Culture Tools Prevention P Passion • Customer- • Marketing • Personas • Involvement centric Plans • Processes • Equity (non- • Policies transferable) • Trust • Budget • Proactive Under-Managed g • customer.ology.com • clearaction.biz/blog • blogtalkradio.com/cusstomerexperience • brighttalk.com/channels/2107/view • Customer Experience Improvement Momentum e-handbook e © 2009 ClearAction. All rights reserved.

Customer Retention is Smart Business n Best Average Laggard Customer Retention 15% 1 1% 0% Customer Satisfaction 1 19% 8% 3% Profitability 8% 6% -8% Year-over-year increases for best-in-class, averag & laggard customer experience practitioners ge -Aberdeen Group 2008 Customer Experie ence Management Study © 2009 ClearAction. All rights reserved.

Customer Experi ience Resources Podcasts clearaction.podomatic.co clearaction podomatic co om Blog customerexperience.vox.com blogtalkradio.com/customerexperience blogtalkradio com/customerexperience Every Month slideshare.net/clearaction slideshare net/clearaction brighttalk.com/channels/2107/view © 2009 ClearAction. All rights reserved.

Testim monials • “ClearAction taught us things that wouldn’t readily cross our minds t and has increased our efficiency & accuracy in many areas y • We highly recommend ClearActio as a business consultant” on • “ClearAction’s assistance was he elpful • We look forward to working together in future” • “Lynn is a superb strategist, diagn nostician, facilitator & team player • She is the Sh i th most k t knowledgeable p f l d bl professional I k i l know in intertwining voice of the customer and marketing operations” © 2009 ClearAction. All rights reserved.

CEM Mentoring • Cle early see what’s needed to take imm mediate action CEM Enabling • C Clear the way for f organization-wide action i ti id ti 1-877-CEM-RO toll-free OI-4 1-408-687-97 direct 700 Lynn.Hunsaker@C ClearAction.biz © 2009 ClearAction. All rights reserved.

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Customer Retention Strategies

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