Customer Retention! The Key to Business Growth

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Knowing your customer, Doing a regular follow-up, Interacting with them, Offering them the best most importantly simplifying work to get the best output....

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Customer Retention! The Key to Business Growth

  1. 1. www.remax.in/ap CUSTOMER RETENTION IN YOUR BUSINESS
  2. 2. www.remax.in/ap WHY RETAIN CUSTOMER? • Pricing • Failed Service • Not Comfortable/ Convinient • Invounteer switching • Competition • Ethical Concerns • Other Factors
  3. 3. Key to customer retention is customer satisfaction • Stay loyal longer • Talk favorably about organization • Pay less attention to competition • Are less price sensitive • Offer service ideas to organization • Cost less to serve than new customers www.remax.in/ap
  4. 4. Customer Retention in Service companies • Retain best personnel to win and keep good customers • Have loyal employee base • A typical company has customer defection rate of 10-30% per year • Raising retention rate by 5% can increase value of an average customer lifetime by 25% www.remax.in/ap
  5. 5. Customer Retention Tactics – Image Promotion • Community service • Direct mail • Educational offerings • Integrated marketing communications • Newsletters • Regular customer contact • Website Service Quality www.remax.in/ap
  6. 6. Customer Retention Tactics – Service Quality • Continuous quality initiatives • Convenience • Mystery shopping • Customer representatives/ ombudsman • Smile • Treat customers as family www.remax.in/ap
  7. 7. Customer Retention Tactics – Research • Analyze defection rates/reasons • Classify customers by usage • Satisfaction • Loyalty • Develop targeted retention programs. www.remax.in/ap
  8. 8. Customer Retention Tactics – Internal Marketing • Loyalty task force • Prepare “solutions” to recurring problems • Share appropriate customer data with staff • Reward customer care person of the month. • Publicize customer care person of the month. www.remax.in/ap
  9. 9. Customer Retention Tactics – Customer Centered • “Dialogue” marketing • Customer bill of rights • Customer care councils • Understand customer expectations www.remax.in/ap
  10. 10. Customer Value Customer value is built through the proper mix of SQIP – Service Quality Image Price Elements that attract and keep customers! www.remax.in/ap
  11. 11. Customer Satisfaction, Loyalty & Retention Model www.remax.in/ap
  12. 12. Sequence In Retention Process • Exploring • Evaluating • Establishing Strategies • Examining Feedback www.remax.in/ap
  13. 13. B uyer or T ry-er • A 1-time buyer is really a try-er , rather than a customer • To move beyond transaction stage, your experiences must meet or exceed expectations • Repeat incidents of high satisfaction are sought through - utilization of relationship marketing strategies, leading to great customer loyalty www.remax.in/ap
  14. 14. Classification – Customer Segments www.remax.in/ap
  15. 15. Loyalty Building Strategies • Participate in customers events • Hold retreat to share best practices • Invite customers to seminars • Set up customer advisory council • Develop a preferred-customer strategy • Reward customers for referring • Develop business plans with key ones • Partner with key industry research www.remax.in/ap
  16. 16. 9 Effective Approaches for Enhancing Retention 1. Build a customer database/marketing information system 2. Design ongoing customer programs - continuity and loyalty-based initiatives 3. Offer long term services - membership/subscription programs 4. Custom promotion - use reminder advertising and press releases www.remax.in/ap
  17. 17. 9 Effective Approaches for Enhancing Retention 5. Focus on key accounts and heavy users 6. Use newsletters/informational materials to stay in touch with infrequent customers 7. Attend trade shows 8. Research customers needs and wants 9. Welcome suggestions and complaints www.remax.in/ap
  18. 18. 7 Criteria for Selecting CR Approach 1. Efficiency - low cost 2. Effectiveness - likelihood to succeed 3. Adaptability - strategic fit with culture 4. Consistency - works well with marketing plan 5. Competitive advantage 6. Ease of implementation 7. Projected profitability www.remax.in/ap
  19. 19. Happy Customer Retention to all! www.remax.in/ap

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