Many business owners focus on bringing in new customers by investing resources in marketing, advertising, creating promotions, etc., while simultaneously forgetting the important asset already in their hands: existing customers
Existing customers are an audience that has already approached the business and purchased services or products from it. Such experienced customers typically constitute an exceptional pool for conducting new transactions.
People who purchased products in the past will typically need, over time, spare parts, components, upgrades, replacements, etc.
Customers who consumed services or scheduled treatments, appointments, etc., will typically need additional appointments, treatments, and services over time.
An existing customer database is a database that must be nurtured. This is where customer retention activity comes in:
A wise business owner will contact existing customers periodically to offer them products and services. For example:
Dentists can remind customers that it is time for a periodic checkup, water filter sellers can remind them that it is time to replace the filter, a mobile phone or electronics business can update them that new models have arrived, etc.
Most of these examples can be executed via email or text message, but then comes the important part – when those existing customers respond and express interest, their inquiries must be handled quickly and promptly.
Proper, professional, and quality customer retention activity will generate growing revenue for the business.
A skilled customer retention center will manage the customer database so that it contains all relevant details of existing customers, contact information, preference needs, what they purchased or requested last time, and even at what times it is convenient for them to talk on the phone.
Such details can strengthen the connection between customer service center personnel and customers. The feeling of existing customers that they are known, that their needs are addressed, that they are listened to, and that care is taken to maintain contact with them, strengthens their connection to the business, their loyalty, and the likelihood that they will return to consume again and even recommend the business to friends, family members, and others.
A customer retention center that provides fast, courteous, and professional service to the customer will instill in them a sense of security and understanding that they are in good hands, that they have someone to turn to and someone to rely on.
The business representative engaged in customer retention must be patient, service-oriented, and reliable. Long-term contact with existing customers is fertile ground for creating additional transactions, and therefore an effective customer retention representative can generate additional revenue for the business.
A customer retention representative will also handle complaining customers, those who encountered a problem with a product or service. Serious and supportive handling of a complaining customer will preserve the business’s reputation and cause those customers to return to the business in the future as well.
Another area in which the customer retention center will engage is periodically contacting customers to remind them of the business and that they are important to it – for example, greetings before holidays and festivals, birthday wishes, and even small gifts (for example, a discount during the birthday month).
Remember: retaining existing customers is a process several times cheaper than bringing in new customers!
Customer retention will therefore include:
- Service and support for existing customers
- Problem resolution for complaining customers
- Cultivating long-term relationships with existing customers
- Providing personal attention to customers
All of these with the goal of nurturing the loyalty of existing customers to the business, its services and products, preventing migration to competing businesses, and increasing business revenue.
