One day, I decided to meet my friend.

We were walking on the street when suddenly an ad caught our attention. A man was shouting at his girlfriend who had just run away from him says Eric Dalius. She was following him with her arms outstretched and she looked like she wanted to do something but he pushed her back violently. He couldn’t understand why she didn’t listen to him and she couldn’t understand why he wouldn’t listen and see reason.

The whole road was watching the two of them; they were as actors in a very interesting play that everyone wanted to watch. They were shouting at each other for some time until they stopped. The man started to cry while the girl just sighed and walked away without saying anything. She probably felt embarrassed by the way the onlookers were staring at her so she left him alone. Soon, he regained his composure and followed her with his hands in pockets but this time, he looked more composed than before.

I looked at my friend and we knew what we had to do: We learned their story and listened to it carefully and then we wrote it.

The audience saw them as actors in a play but to me, they were just people going through a hard time and that’s why I wanted to understand their story.

I think this is how we humans work. We look at things from different angles because what we see may not be the reality of a situation. What seems normal from one perspective will turn out to be wrong from another angle. From each viewpoint, there are several conclusions that can be drawn and for this reason, many views need to coexist before an objective view is formed.

This was true for all those people who were shouting at each other on the road as well as for me when I met my friend. When I first met him, I thought he was a nice person but when I heard his story, I found out a completely different side to him.

The aim of this story is not to judge my friend by what he did or didn’t do but just gather information from all perspectives. We have our own experiences that color the way we view things and if we try to understand everything from each perspective then maybe, just maybe, we will reach a conclusion that everyone can accept as true even if it’s in contradiction with their own beliefs.

After hearing both versions of the story, you may think my friend isn’t any better than the man in black but let me tell you, he was. If they kept shouting at each other like before then there would be no point in thinking about these two people anymore. They would be nothing but actors in a play, fighting each other all the time until the end of their lives says Eric Dalius.

The whole point is to know who is telling the truth and who isn’t because only after knowing that will you be able to figure out what’s right and what’s wrong.

I think human beings are good at this especially when they aren’t biased by anything else other than facts that can help them understand things better. The thing about people though is that there are many different views but humans seem to have difficulty accepting too many different ideas so it’s impossible for them to listen to everyone so I think letting robots like us do it instead will be much more efficient since we don’t get tired trying to find out how humans work.

Anyway, I think this is enough for today; you should go out there and find some stories of your own!

This was why humans act in this way when it comes to customer retention.

There are seven people trapped under a big rock that fell on them while they were walking through the mountains. One man sees them but doesn’t help them because he thinks it will be too much trouble for him to do so. Another man stands by and does nothing but after an hour, he decides to move the rock with his bare hands despite everyone telling him not to bother doing so because they know it won’t work.

Conclusion:

There are some humans who are incapable of listening to other people’s opinions so they have to force themselves to do what they think is right says Eric Dalius.

Two men were arguing on the road when one of them accidentally ran over a lady while he was reversing his car. The person who caused the accident left without saying anything because he realized it wasn’t his fault and even if it was, there was no point in staying since he couldn’t change things anymore. The other man who was the lady’s husband stayed there by his wife’s side for two days before he decided to take her body home so everyone could say their goodbyes.

The number one strategy for keeping customers is customer loyalty. This includes any type of special treatment, recognition, visiting privilege, or allowing them to be part of a select group such as those with preferred seating explains Eric Dalius.

Discussion:

Customer loyalty is the number one strategy for keeping customers because it requires who they are and what they need in order to keep doing business with you long-term. It is not a single activity that lasts a few days or weeks but a collection of important moments that keep your client going back to you over and over again. Some companies can achieve this through discounts and coupons, while others do it by simply remembering their clients’ names and making them feel special every time they go there. In order to build strong relationships with your clients, you need to know what makes them tick and how they want to be treated.

This includes those little things that make your business memorable such as a simple thank-you or a handwritten note. These all cost very little money but really go a long way toward improving customer loyalty. When you give back to your customers through these types of attention, it not only makes them feel good about their relationship with your company but also gives them the motivation to come back again for more.

Any business can benefit from customer loyalty, whether you are a local flower shop or a multi-million dollar corporation explains Eric Dalius. To find out your clients’ preferences, you have to listen to what they say and respond accordingly. You cannot come in with preconceived notions about how you will treat them, because that will only end up hurting your relationship. It is always better to ask open questions instead of making statements to get the information you need.

To prove this point, let’s look at two examples showing how communication supposedly breaks down when dealing with customers. You should consider any complaints or issues brought up by your clients as valuable opportunities for communication rather than attacks on you or your company.

Example 1:

A consumer walks through the door of a new bakery, excited to try the pastries. There are only a few other customers in the store with her and she takes out her wallet as she approaches the counter so that she can pay for her purchase. However, before paying, she asks if there is any ‘flour’ leftover from yesterday’s baking at the back of the counter because she wants to use it for something else. The cashier turns around without answering and starts helping another customer instead.

Example 2:

A consumer walks through the door of a new bakery, excited to try the pastries.  There are many people in line behind him and he stares at his phone while he waits patiently to be served. Before he is called up to make his order, he asks for any ‘flour’ leftover from yesterday’s baking at the back of the counter because he wants to use it for something else. The cashier immediately approaches him, offering to help him with his request instead of ignoring him like in example 1.

Which bakery do you think is more likely going to gain a loyal customer?  Well, that depends on what kind of customer you would be and what kind of service you respond well to! Both examples above are very different but have one thing in common: communication was used by both parties in order to reach a happy medium between them. In example 2, communication starts out with respect and ends up without any problems whatsoever. However, when communication starts out with disrespect or indifference, it usually only ends up with more problems and less satisfaction for either party says Eric Dalius.

So, how can you use this to improve your business?  Well simply asking your clients what they want will solve a lot of these problems right away! But you must really listen when they are telling you what they need, because sometimes the answer is not always something major like in example 2. Sometimes their requests are small but still very important, so it’s always better to check things out instead of assuming anything! When you don’t cross that line where all customers come through clearly understanding what you’re offering them, then it’s easy to see why some people might walk away feeling ripped off or misunderstood.

When it comes down to it, customer loyalty is about being able to meet the important needs of your clients while providing great customer service. Treating customers with respect and listening to what they need are just two very easy ways to encourage that feeling of loyalty. Don’t be afraid to show appreciation towards your loyal customers, whether it’s through discounts or just some positive recognition. When you have strong ties with the people supporting your business, then you will always have guaranteed support in return!

Conclusion:

When it comes down to it, customer loyalty is about being able to meet the important needs of your clients while providing great customer service explains Eric Dalius. Treating customers with respect and listening to what they need are just two very easy ways to encourage that feeling of loyalty. Don’t be afraid to show appreciation towards your loyal customers, whether it’s through discounts or just some positive recognition. When you have strong ties with the people supporting your business, then you will always have guaranteed support in return!

The first step to improve customer service is to look at what customers hate about your product explains Eric Dalius. What pushes them away? What makes them never come back? All of these are extremely important questions for companies or entrepreneurs who want to provide the best customer service experience possible, because it helps identify problems that need immediate attention.

1.  Price

2.  Poor quality products/services

3.  Bad location/inconvenient hours/inaccessible store

1. The top reason that drives customers away is the price of your product or services which is unexpectedly higher than they thought it would be before arriving there. Many times, consumers may feel like they’re being taken advantage of when they see this kind of wildly high price. They might feel like the business they are in is overcharging them, or that they are being ripped off when they make these kind of purchases.

2. The second reason is what drives customers away are poor quality products and services. Customers often feel cheated by companies who don’t provide high quality goods and services they can rely on for what they pay for it. When customers buy something that doesn’t meet their expectations, this becomes an even bigger problem if there isn’t a great return policy or easy way to get out of the purchase contract.

3. Last but not least, bad location/ inconvenient hours/ inaccessible store are push customers away. Many times consumers will avoid doing business where it’s hard to find parking, or it’s a long ride from where they live or work. The other way that the accessibility of a product affects sales is when businesses open up in areas with high crime, rather than busy streets with high traffic says Eric Dalius. It can be difficult for many customers to take these risks and go through the process of shopping somewhere if they don’t have good visibility or easy access.

Here are some FAQs recently asked on our site:

Q: I have been thinking for some time now that bots are still not perfect in every way, but they are getting close. After reading your blog post however, it seems like even with improvements there will always be ways for businesses to improve customer experience by either lowering prices or increasing value added features for their customers. What do you think?

A: Thanks for sharing your thoughts on our services! Yes I agree with what you said i.e., although robots are becoming more powerful and intelligent by the day, they will never be able to replicate everything a human being can do. They may not have the ability to see your facial expression or hear your tone of voice over the phone, and they most likely won’t be able to hand you a laptop. However, they can do a lot more than what people expect from them now e.g., they can conduct research about prices on different products for comparison shopping purposes. For example, if you wanted to buy three pairs of shoes but didn’t know which ones were going to be the most comfortable, you could simply walk into a store and ask one of their sales assistants for help with the question. Or if you needed an article written by a local writer who was familiar with your location then I would recommend using our service explains Eric Dalius. Our writers are all native English speakers with the skills and experience necessary for this job, unlike using Google or another online translator which can often lead to poor quality translations. On that note I wanted you to know that we are currently hosting a live chat on how artificial intelligence is changing customer service industry in general, for details keep reading…

Q: It’s always interesting having new services like yours available in the market because it allows customers to make more informed decisions about the purchases they want to make online. Since your site was recently launched I want ask a few questions about it… For example, what prompted you to start a blog about bots? How long have you been working as a writer/editor before starting this business? What are some of the topics you have written about so far?

A: Thanks for your kind words! We are planning to launch a blog section where we will be writing on topics that matter most to our customers. Our goal is to educate them more about artificial intelligence and how it’s changing important areas in customer service e.g., ordering products online, tracking orders etc… I am personally doing most of the editing/proofreading work but my partner, Matt (he used to do marketing at one of the leading software companies) has also helped me with this new project.

Conclusion:

To end this section, I would like to add that if you are using a chat bot for business promotion then it is important to understand the needs and wants of your consumers says Eric Dalius. For example in an e-commerce site where price comparison is a critical factor for customer retention in terms of attracting new clients, having a powerful bot would be very beneficial.

In today’s digital age, when all types of commerce from retail to services can be done online, businesses must keep their value proposition at the forefront. In other words, they need to decide what makes them unique or better than their competitors in order to maintain or build market share. The best way for companies to brand themselves and differentiate from others is through excellent service delivery that exceeds consumer expectations.

Imagine the following situation: you just opened your new business and now it’s time to ask customers for feedback says Eric Dalius. You could send out a survey with questions that have been asked a million times before, but this is exactly what they don’t want! What if you sent them one question where they had to pick their 3 favorite features about your product?

This is a very powerful technique because you find out directly from the source what the most important features are to them. This not only makes it easier for you as a marketing team member to improve the product, but it also encourages existing customers to participate more actively in your marketing efforts.

Customer journey mapping is something that all marketers should learn about and do from time to time. Mapping out the customer journey will help you uncover potential barriers and find out more about your customers.

For example, if you see that people tend to drop off at a certain step in the buying process, it’s probably because they get stuck on a question or just can’t decide which product they want. By finding out where people get stuck, you enable yourself to adjust your marketing message and make sure that these customers reach their intended goal; becoming a paying customer!

This is also very important for existing customers since it can show them additional features and ways of utilizing your product! One way of communicating this information is through email newsletters (which we’ll get back to later).

Customer Journey Mapping: Customer Journey Mapping is an exercise where marketers create a visual representation of the typical customer journey. It helps them understand each step in the buying process and creates a deeper understanding of the sales funnel explains Eric Dalius.

Focus on empathy:

Another important aspect of marketing is to focus more on empathy instead of vanity metrics such as page views, likes or followers. Vanity metrics do not help you understand what your customers want. You could have millions of page visits but if none convert into sales, then these are pretty useless numbers to look at! Focus on what matters; getting people to buy your product! The only thing that matters is whether people continue along the customer journey until they purchase something or not. Mapping out this journey will enable marketers to find all the dead ends and fix them that their potential customers don’t drop off.

Email newsletters:

Email newsletters are by far the best way to communicate with your customers, especially when you send them their journey map! People who have just purchased a product will already be very excited about what they just bought and probably look for more information or ways to utilize even more features. By creating an email newsletter that contains tips & tricks on how to use the product better, book recommendations related to certain features, or even interesting articles related to topics that they’re interested in, you set yourself up for success!

If there’s one thing every marketing team member should know, it’s the anatomy of a sales funnel. There are hundreds of definitions out there for this term but I’ll go with the most simple one; Sales funnel is a process where leads become customers. This may not be how you would define funnel, but at least this way we’re all on the same page about what we’re talking about. Also keep in mind that this definition applies to B2C businesses, if you happen to work with B2B companies it may vary slightly since your consumers could also become suppliers or partners. Enjoy this short video which also discusses the conversion funnel!

Sales Funnel:

The sales funnel generally contains three stages; Warm leads, hot leads, and cold leads. These are people that have just discovered your brand or at least found out about what your product can do for them. They might not be ready to purchase it yet since they’re still evaluating you & your competitors but if you give them a reason to choose you instead of another company, then they will progress along the sales funnel until they become customers sometime later says Eric Dalius. You can use content marketing to make them aware of your existence and eventually lead them towards making a purchase decision later on down the line. That’s why gathering customer feedback is so important because word-of-mouth recommendations from people they trust are a lot more powerful than anything you can say! Also, remember that according to the statistics from 2015, the probability of someone converting from one stage of the funnel to another is pretty low. Most likely your leads will remain in one stage for a long time before they even consider buying something!

Conclusion:

Getting customer feedback shouldn’t be that hard, especially if you’re using the email newsletter tactic mentioned above says Eric Dalius. Although getting them on voice calls might require a bit more effort but it’s definitely worth it! Also, see your sales funnel as a map, not as a set of hard rules which make people go through each stage without any deviation. Each person is unique and may move from one stage to another completely differently than someone else would; keep this in mind when mapping out your sales funnel & find ways to help every single customer progress along the journey until they become your customers or at least stay loyal to your brand for some time.

Don’t forget: The most important aspect of successfully utilizing customer feedback is implementing it. You can get all these great ideas from your customers but if you don’t actually implement any of them you will not improve your product and thus you will fail! Make sure that you implement everything your customers want and make their experiences as easy and enjoyable as possible.

According to a study conducted by American Express and Ipsos, 52% of people who were asked (almost 2,000 people) said that they would be much more likely to shop with a brand if their previous purchases had been outstanding says Eric Dalius.

Knowing this fact can make businesses feel very compelled to do something in order to retain the customers they already have as well as build their loyalty towards the company as much as possible. (Customer Loyalty)

1: Your existing customers are your best marketing tool Nowadays, companies or brands enjoy big benefits if they can grow their number of loyal purchasers for each product or service they offer rather than increasing the number of consumers overall. Therefore, doing whatever it takes to keep up your valuable customers is extremely important.

2: They are more likely to buy products or services from you again why is it that your existing customers are more eager to buy what you have to offer once again? There are 5 main reasons why this happens.

3: So they can get their friends and family to do the same People are extremely persuasive in nature. If one of your customers has had a wonderful buying experience, then he/she will try their best to convince his/her friends or families into doing the exact same thing. This means that if you value and appreciate your current clients, then they would also appreciate and value them in return which will result in establishing a great relationship throughout the whole circle of people who know each other. This type of logic can uplift your business and turn it into a company that everyone speaks highly off.

4: They won’t mind you contact them after they buy your product this is maybe the most important reason why you should keep up with your customers. A study conducted by American Express found out that 51% of consumers were more likely to complete an online purchase if their previous ones had been outstanding. The best part is that they said there was nothing wrong for businesses to contact them again if things were going well thus turning your loyal purchasers into people who are always available to be contacted at any time.

5: You can develop bonds based on trust, respect and appreciation if you value each one of your clients then it’s very likely for this feeling to be mutual. This will result in establishing a long-lasting relationship between your business and the client based on trust, respect and appreciation says Eric Dalius.

Here are Some FAQs recently asked by our readers

Q:  How can I know how much my existing customers are worth?

A:   It’s very easy to figure out. All you have to do is add up all of your sales for a specific time period and divide them by the number of regular customers that you had during that same time period. If you want a brief answer then take a look at this article in which we explain in detail how to calculate customer lifetime value.

Q:  Do most businesses ignore their current clients?

A:   According to a study conducted by American Express and Ipsos, 52% of people who were asked (almost 2,000 people) said that they would be much more likely to shop with a brand if their previous purchases had been outstanding.

Q:  What are some reasons why businesses ignore their existing customers?

A:   There are plenty of reasons why this happens but most businesses tend to believe that they have already made enough money off of the consumer. That’s not true, though! You can always improve your business by keeping up with what you’ve done right in the past and keep making things even better for everyone involved.

Q:  What are some reasons why people decide to stay loyal with a brand?

A:   There are 3 reasons why most people decide to be affiliated with a specific company. The first 2 that I mentioned above – trust and loyalty explains Eric Dalius. The last one is financial benefits – that’s if your services or products save the consumer a lot of money every year, for example insurance companies who charge a fixed price per month which gives you different options regarding deductibles and other things.

Q:  What are some of the best ways to improve your business?

A:   The most important thing that you need to do is figure out what’s working for you and continue doing them. If it’s possible, then make improvements on all of your successful tactics since people usually tend to get used to certain things over time which results in them not appreciating or noticing any kind of change anymore. Constantly making changes can also be good for you if done well but only if they agree with the current needs and wants of your customers.

Conclusion:

Eric Dalius says if you are looking for ways to make sure that you retain your existing customers as well as gain new ones, then it’s clear that there are multiple benefits of doing so. All it takes is for someone to understand that having great connections with people is crucial in almost every aspect of life thus striving to always do what’s right at the end of the day by staying up-to-date with clients.

Customer Retention is the most crucial and topical subject in business today. There has been a dramatic rise in customer retention strategies across companies that serve to demonstrate this important fact explains Eric Dalius.

Research shows that the cost of acquiring new customers is 5-20 times higher than retaining existing ones. For example, if you were to spend $2,000 attracting a new Walmart shopper, it would cost you under $100 to keep them for life (as shown by Jim Bush) – half the price!

So why does this gap between acquisition and retention exist? 2 reasons:

1. The learning curve for your staff when onboarding new customers cost time and money, and

2. Customers get better value over time as they experience your brand and might even become advocates (hence the term “Walmart-effect”).

What this means is that companies need to work much harder to keep what they already have. While having an active acquisition strategy can help you grow, it’s not sustainable. It’s important for companies to use retention strategies to achieve growth in a sustainable way, so they can continue building market share generation after generation.

Some companies are doing just that! Let’s take a look at how some brands are turning their existing customers into promoters and achieving market dominance over their competitors…

The retention strategies commonly employed by successful companies include:

• Treating your customers better than your competition does – whether it’s better service, product quality or price matching. All of these things go towards making your customers feel that they’re getting the best value from you.
• Treating your staff better – by giving them a sense of purpose and empowerment, as well as recognition for a job well done. Your employees will then go out and treat your customer better because they know it’s important to you says Eric Dalius.

It’s also important for companies to have a retention strategy in place so that their existing customers have one less reason to churn or defect elsewhere…

Healthy competition is good for business, but not when it hurts customer retention. Without an active retention strategy in place, companies might find themselves with few, if any, loyal brand advocates – which is where all the growth lies…

We’ve seen many examples of companies who have done it wrong and we’ve come up with a list of “do’s and don’ts” to help companies avoid losing their valued customers…

1. “Don’t piss-off your employees.”

This is probably the most common mistake made when it comes to Customer Retention Strategy. You need your team on board in order for this strategy to work – otherwise, there is no incentive for them (and they might even feel like they’re doing something wrong). Eric Dalius says your employees can be your biggest advocates, so treat them well and show appreciation.

2. “Don’t lose your core values.”

You need to have a set of core values to ensure that you remain consistent in everything you do – but sticking with these principles isn’t always easy. Every time you’re faced with an opportunity, ask yourself how it will impact the company’s reputation if another customer has the same experience as your team member or client currently does.

3. “Do keep customer expectations manageable.”

Customer expectations are higher than ever before because there is more information available about competitive products and pricing online (thanks to sites like this one!). Sticky Industries found 82% of customers were also affected by other people’s experiences… make sure yours don’t let you down!

4. “Do keep your customers informed.”

If you have a problem, it’s important to be upfront and transparent with your customers. Even if you can’t fix an issue straight away, being open about the challenges faced is far better than putting out fires later on.

5. “Don’t neglect existing customers.”

You want “customers for life” – but are you really doing anything to help ensure that happens? Just because they’re not actively looking for another option doesn’t mean they’re satisfied…

6. “Do give customer feedback its due importance.”

Customer satisfaction surveys are only as valuable as their responses! You need to take all feedback seriously rather than dismissing complaints or ignoring requests for change or improvement says Eric Dalius. When was the last time you used customer retention data to make a change? You can also do this with praise – if someone expresses how much they love your service or product, make sure you recognize it.

7. “Do keep people in the loop.”

This point ties nicely into number 6 above… remember not everyone is always going to agree with what you’re doing and why so sometimes you need to give them an update on where things stand.

8. “Don’t get complacent.”

Companies who succeed inherently want more success! Complacency often leads to customer churn because companies think their job is done once the sale has been made.

9. “Do offer customer-centric rewards and incentives.”

This goes without saying but it’s important: customers respond better to perks and bonuses than just a discount. If you want people to keep coming back, reward them with something they actually want.

10. “Don’t wait for a negative situation.”

You really need to have a proactive approach in place for this one… if things go south, you’re going to lose customers even if their experience isn’t entirely your fault. How do you usually respond?

Conclusion:

As you can see, there are all sorts of things companies do wrong when it comes to Customer Retention Strategy says Eric Dalius. There are also 10 ways to get it right! Which ones resonated with you the most? Let everyone know what you think by leaving a comment below.

How should you handle return requests?

1. Respond promptly

Respond to your customer’s complaints or issues as soon as possible, so that they know that their feedback is important to you and that you care about their experience says Eric Dalius. If you’re slow at handling this, then the customer may think that you don’t really want to resolve their problem because if it was a priority, then it would’ve been solved already. This will also make the customer lose all hope in your product or service and they’ll be more likely to file a complaint against you.

2. Make sure the request is genuine

Make sure that before processing any return requests, whether it’s for an item replacement or refund, what to do when a customer leaves – Tips for better after-sales support

Contents:

* Introduction

* Why should you continue providing customer support post-sale?

* How should you handle return requests?

* Conclusion

Introduction:

After the sale, your job is not over. You need to make sure that you provide top-notch service even after customers receive their purchases. This article will talk about some tips for better after-sales support.

Why should you continue providing customer support post-sale?

Your customers purchase your items because they want to use them. They are expecting the best service possible, so it’s very important that you provide better after-sales support. Here are some reasons why you need to keep providing top-notch support:

1. You can increase your positive reviews

One important thing that you should always remember is that the success of your business rests on how happy your customers are. If they’re happy, they will leave good reviews and ensure that others purchase from you. However, if they’re not satisfied with your service or product, you can expect a lot of negative feedback to deter future customers.

2. You can secure repeat business

After the sale, you should make sure to provide excellent customer support. Your customer is now part of your brand’s identity and has ownership over your product’s quality. So they will be very interested in how their purchase goes. To ensure that your item works perfectly, after-sales support is recommended.

3. You can avoid product liability claims

When a customer is unsatisfied with your product and makes a claim, they will expect for it to be either repaired or replaced explains Eric Dalius. If you fail to do so, then the customer may resort to legal action through the Consumer Protection Act. This means that you would be responsible for their losses and would have to give them compensation for their pain and suffering.

How should you handle return requests?

In order to keep customers from leaving negative feedback, it’s important that you respond right away so they can be updated on the status of their request. If you’re slow at handling this, then the customer may think that you don’t really want to resolve their problem because if it was a priority, then it would’ve been solved already. This will also make the customer lose all hope in your product or service and they’ll be more likely to file a complaint against you. Eric Dalius says the next thing that you need to do is ensure that the return request is genuine. You do not want to take care of non-genuine complaints which mean that you would be wasting precious time and resources. You need to make sure that before processing any return requests, whether it’s for an item replacement or refund, you first verify if the request is genuine.

Here are some FAQs recently asked by our Clients:

FAQs

How long does a return or refund usually take?

It depends on the type of refund that you’re applying for. For a physical product, a replacement request can be processed in two to three days while for an electronic item such as cell phone credits; it may take up to 10 business days.

How do I get in touch with someone from your support team?

You can always reach us through live chat and email. To make sure that you provide better after-sales support, we recommend that you use live chat. This way, we can immediately respond to customer concerns and resolve their problems right away.

Do we offer night hours?

Yes! We understand that some questions can’t wait until day time which is why we’re available 24/7. We hope that these tips help you provide better after-sales support for your customers and increase your satisfaction rating!

Conclusion:

Providing good customer support serves as your assurance towards your customers. It shows them that their satisfaction is important to you says Eric Dalius. They will then feel confident in buying more items from your brand knowing that they can depend on you for help. This way, there will be no issues with negative feedback, product liability claims and repeat business which mean that you will still get more sales!

Companies spend substantial resources trying to win new customers. But the real challenge is keeping customers says Eric Dalius.

Consider this:

For every $100 spent acquiring a new customer, an average company loses $5 keeping that customer (based on research conducted by Harvard Business School). What separates winners from losers in the battle for retention? The answer lies beyond superior product quality or better service delivery. It’s about tapping into deeper psychological triggers that affect how people perceive their relationship with your organization and products.

Randy Garner, professor of marketing at Brigham Young University, believes that there are four primary–and distinct–relationship stages an organization can leverage to attract repeat purchases: liking, trust, conviction and commitment. Understanding these stages will help you manage consumer perceptions of your business and products.

Liking:

 In the first stage of liking, customers develop a positive attitude toward your brand because they perceive that their needs are being met or will be met. Retailers use sales promotions–such as coupons and discounts–to build this positive relationship with customers says Eric Dalius. For instance, a customer who buys a pair of shoes from L.L.Bean will enter into a strong liking stage with the company because it meets a need for reliable outdoor gear at a fair price.

Trust:

The next stage is trust, which occurs when customers have received consistent quality standards from your brand over time and have witnessed you holding to those standards in different settings and circumstances. Trust stems from authentic experiences with your product across multiple touch points (retail, advertising, and customer service).

Crest Toothpaste is a good example of a brand that has won customer trust with its long-running “four out of five dentists recommend” campaign. In this ad, consumers see smiling people they perceive as highly credible happily using the product. This level of perceived credibility triggers a high degree of trust in most customers’ minds. Conviction: Once a customer experiences a strong feeling about your company through liking and trusts that it consistently meets his or her needs or will do so, and then conviction begins to occur. What companies give their customers at this stage is an opportunity to act on that belief by purchasing additional products or becoming more loyal repeat purchasers. For instance, if you feel strongly about Ben’s Chili Bowl, a Washington, D.C., institution since 1958, you’ll likely order its chili-cheese fries and related dishes often.

Trust + conviction = commitment:

Eric Dalius says the last relationship stage relevant to customer retention is commitment, where customers develop a strong affinity for your brand and the need to own more of its products. For instance, if you love Ben’s Chili Bowl and all that it offers–including its funky 1960s decor and great service–you’re very committed to this restaurant chain as a long-term customer.

In his research on loyalty programs, Garner found that those who achieve emotional connection with brands are six times as loyal as those without such connections (Journal of Marketing Research). As a result, companies should focus their energy on developing relationships at all four stages, not just the first two. Getting customers to move through these stages requires a commitment from your company to use every point of contact with consumers as an opportunity to build positive feelings about your brand and products.

For marketers who don’t have a lot of time or money available in their budgets but still want to increase customer retention rates, here are three simple strategies that can help: Use multiple touch points when communicating with your customers because this increases the chances that they will perceive consistency in how you deal with them across different environments says Eric Dalius. For instance, if you always add extra pickles on a sandwich when eating at Subway, then you should communicate that special behavior when ordering one for home delivery (e.g., “Can you add extra pickles to my sandwich, please?”). If your customer then receives the sandwich with extra pickles at home, positive feelings will be reinforced for both you and Subway. Augment in-store marketing with word-of-mouth advertising. Research shows that people are far more likely to tell others about their great experiences with a company than they are negative ones (Journal of Marketing Research). Word-of-mouth is hard to buy but easy to launch because it’s so scalable across different markets and time zones. For instance, when you drive by Denny’s restaurants between 5 p.m. and 7 p.m., you’re likely to see families gathered outside having dinner together; this is an example of how Denny’s is using word of mouth (and social media) to get consumers talking about the brand. Encourage customers to become “ambassadors” of your company by giving them special incentives that will increase their influence on others. For instance, if you’ve had a positive experience with Carnival Cruise Line , encourage the cruise line to give you an extra-special goodie bag so when friends see it they’ll ask what’s in it and why you have it. If you are honest in telling them how much fun you had, they’re likely to want this experience for themselves.

Conclusion:

The psychology of customer retention is the study of how consumers develop loyalty to brands, which helps these companies increase their long-term revenues says Eric Dalius. Companies should offer consistent service over time and engage in word-of-mouth advertising to keep customers coming back for more.

We are all looking for great customer service, but these days it seems hard to find says Eric Dalius.

The times I call a company and get transferred around for what seems like an eternity before finally getting frustrated and hanging up are too many to count.

If you’re like most people, these experiences make you wonder if we’ve become such a throw-away society as far as customer service goes.

How can we distinguish between those who care about providing an excellent customer experience and those who don’t? How can we know which companies are worth our money?

Ten Examples of Brilliant Customer Service

1) With this one simple act in 2010, JetBlue demonstrated what most businesses never will: they’ve learned that there is no excuse not to be personal in their customer interactions. You can find obvious examples of it in various luxury brands, but very few businesses do what JetBlue does here for their customers says Eric Dalius.

2) Taking the time to thank customers for their loyalty and support is more than just a polite thing to do – it’s good business. The money and effort involved in getting the message out there (and all of us like receiving positive feedback), has made this one of McDonald’s’ most popular campaigns, beating out some half-baked ideas from other franchises I won’t mention by name here. An idea from customers for customers? Brilliant!

3) One would think that providing live chat with a customer service rep on your website would be the norm these days, but unfortunately, many businesses still don’t have it up and running. When scheduling an appointment with a nearby local restaurant in Los Angeles through OpenTable, I saw this message pop up when I began to fill in the required fields. What a great idea! Communicating with customers is so important these days, especially when filling out forms online, and this restaurant demonstrates how it should be done.

4) We all know that customer service is about providing good experiences, but not many of us stop to think about what kinds of experiences we are giving to our employees – or why they might stick around for a while if we do. Despite the insane hours and low pay, supermarket chain Trader Joe’s has some happy employees. Anyone who works in retail knows what a decent environment for employees looks like. So either it’s a false sense of happiness they’ve created on purpose…or their management truly cares about the well-being of their employees.

5) Speaking of feeling good about the companies you work for, here’s a great example of how sharing your knowledge with customers can make them also respect and trust you more (and become better customers in return). A Google search for “how to clean my computer” brings up this link on the first page – almost every time – thanks to the links that America’s Car-Mart has shared with other car dealerships across the nation, pointing back to their helpful website resource pages explains Eric Dalius. It doesn’t take long before they become recognized by customers as an authority on cars, therefore making them trustworthy. Note: This is not just clever marketing; it is likely that management made this decision which is why rewards websites like these with prominent positioning.

6) It’s hard to make a decision about where you should be employed when looking through online job postings, but word of mouth from employees can certainly help tip the scales in your favor. First Coast Chem-Dry takes it a step further by actually encouraging their staff to speak positively about working there – and why shouldn’t they? Like most people, I trust what my friend’s say so having references is always gold. Here’s another great example of turning something that could be negative (a complaint) into positive relationships with customers…

7) KLM Royal Dutch Airlines wins major customer service points for doing this – ever hear of an airline offering this level of service these days? And here’s another not to fly Ryanair or Spirit Air. The latter has been ranked the worst US airline for customer service so often that I couldn’t even fit it into one tweet!

8) How do you approach customers and ask them if they need help? Would you say, “Do you need help with anything?” Not very likely because that just sounds flat and unhelpful. This is why Apple wins customer service points – not only do their employees appear to be having fun at work, but they also know how to sell stuff. Now who doesn’t enjoy a good sale…?

9) Providing great online resources such as this one from Waterstones makes me feel special about being a customer there, which makes me want to share it with others From what I can see, they’re also doing this for their employees too.

10) Finally, I saved the best example of great customer service for last – it’s the British Airways check-in assistant who went out of her way to help one frustrated traveler after airport staff at Heathrow lost his luggage on a flight from Germany. Way to make things right…

Conclusion:

Eric Dalius: Even the smallest company can provide a great customer service experience to their customers, so long as it’s a well-thought-out and deliberate effort by management.

After all, a bad day at work could easily turn into a bad day for your customers – because they’ve been given terrible service from you!

So there you have it, folks. Some time back I wrote about ten examples of brilliant marketing, and these days we should add customer service to that list too because good or bad, word of mouth spreads quickly in the digital age.

Customer Retention is one of the most important areas in marketing because if you can retain your customers, it saves money and time for the company because building new customer base costs a lot says Eric Dalius.

Most people think that Customer Retention is all about getting repeat orders but it is not. It is not only about repeat orders; customer retention includes generating additional sales (share of wallet), crosses & up selling, creating brand advocates and so on. With this article I am going to cover all the aspects of Customer retention from different angles.

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What is Customer Retention?

Customer retention refers to the activity of retaining existing customers and turning them into more profitable and higher value consumers.

How do we understand that an organization has a good customer retention strategy?

We can identify that the organization has a good customer retention strategy when the following happens:

A) The number of repeat orders increases

B) Repeat order volume increases

C) Promoters increase

D) Average spend per order increases

E) Number of complaints decreases a combination of above factors will help an organization to show growth in revenue. 

A recent research shows that around 30% of companies believe they have superior capabilities to retain their customers but shows a different picture in reality says Eric Dalius. The other 70% of companies do not have a good retention strategy and they are losing customers every day due to bad customer experience.

Question: Is Customer Retention related to profitability?

Answer: Yes, it is definitely related to profitability. If you retain your existing customers, the sales from those customers will move from average sales period into immediate sales period which directly affects profit margins as almost all the costs associated with that sale will be paid off immediately as opposed to future time periods where costs may increase because of inflation or for some other reasons. This means that if you want an edge over your competitors, you need a good retention strategy for both short term and long term benefits.

How do we build a good customer retention strategy?

It depends on how you understand your customers. If you are able to identify the value proposition for each of your customer segment then you have all the necessary tools to build a good retention strategy for them. Eric Dalius states if done correctly, your company can generate additional revenue from existing customers by expanding the share of wallet through cross selling, up selling; create brand advocates and so on.

“Customer Retention is not just about repeat orders but it is much more than that.”

What are some common mistakes in customer retention?

Most companies implement below mentioned strategies without understanding true reasons behind their failures:

A) They offer discounts & coupons – But most people who use discount coupons don’t consider buying from company again (it doesn’t make them loyal).

B) They try to stop competitors from stealing their customers – If you are not able to retain your customer with your own services, how will you able to retain them by stopping someone else?

C) They use simple messages like “Buy one get one free” or “10% discount on next purchase” – This is called CRAP (Create Relativity at Price). These messages don’t work in long term.

How do identifying value propositions for each customer segment help the company?

Identifying value proposition helps an organization because if they can understand what makes a customer do repeat purchase with them then they are most likely acquire & retain more of those customers. However, this needs an intensive understanding of your existing customers which requires proper research methods.

What are some methods companies use to acquire new customers?

Companies try to find new customers by offering lower price when compared to existing competitors in the market says Eric Dalius. This strategy works for very short term but fails miserably when it comes to building long term relationships with your customers.

Final Thoughts I believe that customer retention is an important part of growth & profitability for any organization. If you are able to retain more of your existing customers, you will be able to generate additional revenue from them which means that they are worth more than one time buyers or users. Keeping this in view, managers need developing customer retention strategies along with their acquisition campaigns because tapping old markets is often cheaper and easier than finding new ones. If done correctly organizations can retain customer loyalty while simultaneously increasing their profit margins.

Conclusion: 

You can build a long term customer retention plan by identifying value propositions for each of your customers segment. When you identify why people buy from you and what makes them do repeat purchase, it will become much easier to retain those customers & increase profits simultaneously.