Customer Retention Strategies

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    06-May-2015
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Whether for-profit or nonprofit, customer retention strategies are the same. Here are seven strategies to retain your customers that you should consider.

Transcript of Customer Retention Strategies

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2. 5 3. 6 4. 7 5. On average, U.S.corporations loseof their customersevery 5 years. ~ Reicheld 8 6. An average company has a defection rate of 10%-30% per year. 9 7. Raising your customer retention rate by 5% can increase the lifetime value of average customer by 25% -100%.10 8. 11 9. Customer On average, U.S.loyalty is a customers commitment orattachment to a brand, store, manufacturer, corporations loseservice provider, or other entity.of their customersevery 5 years. ~ Reicheld 12 10. Customer loyalty is measured by proportion ofpurchasea. Undivided loyalty: AAAAAAAAAA13 11. Customer loyalty is measured by proportion ofpurchasea. Undivided loyalty: AAAAAAAAAAb. Occasional switcher: AABAACAABB14 12. Customer loyalty is measured by proportion ofpurchasea. Undivided loyalty: AAAAAAAAAAb. Occasional switcher: AABAACAABBc. Switched loyalty:AAAAABBBBB15 13. Customer loyalty is measured by proportion ofpurchasea. Undivided loyalty: AAAAAAAAAAb. Occasional switcher: AABAACAABBc. Switched loyalty:AAAAABBBBBd. Divided loyalty: AAABBBAABB16 14. Customer loyalty is measured by proportion ofpurchasea. Undivided loyalty: AAAAAAAAAAb. Occasional switcher: AABAACAABBc. Switched loyalty:AAAAABBBBBd. Divided loyalty: AAABBBAABBe. Indifferent: ABCDADCBAC17 15. On average, U.S.Customer loyalty includes:corporations losea. A behavior regarding the product of their customers every 5 years. ~ Reicheld18 16. On average, U.S.Customer loyalty includes: corporations losea. A behavior regarding the productb. An attitude towards the brand/company. of their customers every 5 years. ~ Reicheld 19 17. Challenge with behavior as a loyalty criteria is acustomer may repeat purchases because:a. Convenience, price, availability, or inertiadue to habit.20 18. Challenge with behavior as a loyalty criteria is acustomer may repeat purchases because:a. Convenience, price, availability, or inertiadue to habit.b. Purchases made w/out motive for choice 21 19. Attitude towards a brand is favorable thatreflects preference & commitmentexpressed over time.Includes emotional attachment& positive evaluation 22 20. Behavior factorsaverage, U.S.On include:a. Choicecorporations loseb. History with companyof their customersevery 5 years. ~ Reicheld 23 21. On average, U.S.Attitudinal factors include: corporations losea. Satisfactionb. Emotional Bondingc. Trustd. Risk reductionof their customersevery 5 years. ~ Reicheld 24 22. On average, U.S.Customer satisfaction: A post-purchaseevaluation that results from a lose corporations comparisonbetween pre-purchase expectation andactual performance of their customers every 5 years. ~ Reicheld 25 23. Xerox found thataverage, rate of a 4 out of On a satisfaction U.S.corporations lose5 were more likely to switch to competitor thanthose that rated 5.26 24. Emotional Bonding:a. Brand affect, brand equityb. Company attachment27 25. Emotional Bonding:a. Brand affect, brand equityb. Company attachmentc. Feelings of closeness, affection trust & respectd. Technology limits emotional bonds.28 26. Willingness of customer to relyon organization 29 27. Reduces uncertainty and risk 30 28. Honest, fair and unreasonable. 31 29. CustomerRetentionStrategies 32 30. 1. Create A CultureOf Buzz!33 31. If the marketplace isnt talking about you,theres a reason. The reason is that youreboring. And youre probably boring onpurpose. You have boring pricing because itssafer...You have boring products becausethats what the market wants.~ Seth Godin34 32. 2. Consistency builds trust!35 33. Customer retention is a long-term game, not adrive-by event. 36 34. Repetition, consistency & authenticity buildtrust and are the foundational tools of customer retention.37 35. 3. Trust mostimportant factor tooffer!38 36. Lack of trust is the singlegreatest reason you cantkeep customers.39 37. Trust is earned by keepingpromises. Trust is lost by overpromising & under delivering. 40 38. When youve earned trust, youcan make mistakes, own up tothem and correct themwithout loss! 41 39. 4. Staff as customer!42 40. Your employees treat yourcustomers the same way youtreat the employees! 43 41. Must retain your bestemployees so you can retainyour best customers.44 42. 5. Create an opendashboard.45 43. One-page, high-level view ofkey strategic, marketing andfinancial indicators. 46 44. Transparency with employeeskey to company success andvision as well as customerretention.47 45. 6. Golden Rule OfCustomer Retention:Give To GetMentality.48 46. Those who usually giveget!49 47. Approach customer relationships by asking,"What am I here to give?" or"How can I serve?Not, What can I sell you.50 48. Develop a strategic partner relationship witha view toward adding value51 49. 7. Turn your attentionto educating notselling. 52 50. Successful customer retentionprovides valuable content &education that shows howbrand understands customerneeds.53 51. Content marketing strategy iscritical hereproviding usefuland helpful content of value. 54 52. Schmoll Moch ArkansasSupportsP Francisco Cisirio hotography.com Bullion Vault Nettsu Wildxplorer CPThuh Morgan Cito Andreas Kollegger Thomas Hawk Mag3737 FutUndBendl Patrick Hoesly Xose Castro Danard Vincente Bahman Transcam 53. jhurt@velvetchainsaw.comvelvetchainsaw.com@JeffHurt