Increase Retention by Enhancing Your Customer Service Strategy
One of the biggest ways to increase retention rates within a company is to increase honest feedback from employees. Most customers appreciate companies that openly share their opinion. The best businesses out there know that customer retention and customer engagement are intrinsically linked. If one employee gives honest feedback about how your products or services are held, then the next employee can better understand how they can improve for their career. In turn, this results in customer retention and engagement.
Giving honest feedback is important because it encourages new customers to become part of your customer base. This provides valuable information on what new customers are looking for in your products or services. It also helps your company to see where customers have gaps that could be filled. This type of feedback not only benefits retention and engagement, but also increases new customers.
Another great way to help retain and increase customer retention is to follow up with potential customers after a sales call or visit to a website. After a customer purchases a service or product, there’s no customer anymore. Customers will still have a few interactions with a company, but a follow up is important to establish future business. A follow up allows you to ask questions or make adjustments to your sales process without upsetting your current customer base.
Some of the biggest problems with companies trying to increase retention strategies are focusing on selling, instead of following up and connecting with customers. When you focus solely on selling, you’re more likely to close a sale than to give one to a prospective client. Companies that try to sell by volume, instead of developing relationships, can quickly lose potential customers. Hubspot has developed its own customer follow up system that gives companies an easy way to develop relationships. It offers both upsells and cross-sell opportunities.
Upsells are simple to implement using customer follow up. They allow you to offer additional services or products to customers who already purchase something from you or add a product that your company sells exclusively. You can even offer them to people who haven’t purchased anything from you before, though this tactic requires a bit more thought. The idea is that if the customer enjoys your product or service, they may decide to buy again in the future. Using spells to build customer loyalty is the most honest way to ensure your products and services will be tried and true.
On the other hand, cross-sells are more complicated, because they require more thought. They offer customers another product or service, which may be different from what they’ve bought before. Sometimes companies must choose whether to focus on selling customers or cross-selling. If you want to increase retention, upselling is fine; if you want to foster customer loyalty, stick with customer support and customer product quality. In the long run, the former won’t hurt your bottom line and the latter won’t damage it.
However, many marketing departments choose to use both upsells and cross-sells; they hope that they can entice customers to purchase more than just one item. This strategy works, because most people enjoy having the option of buying more than one product from a company. If your customer service strategy emphasizes customer service above all else, it’s also advisable to provide additional items or services to those who purchase. This will increase your retention rate and your profit margin.
How do you know if your current marketing or customer service strategy is effective? Ask your customers, of course. Find out what they think about your company’s overall approach to their needs. If you’re vague with your answers, it might mean that your business isn’t as successful as you’d like it to be. If you get positive feedback and lots of compliments, then you’ve just found two very good reasons to start focusing on your customer service strategy.