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How to Get Your Customers to Stick Around by Elaine Fogel
Maybe your clients or customers are hard and true and have been with you for many years. But if your company is like many others, it likely experiences attrition. Many businesses, especially the small to mid-sized ones, don’t customarily conduct market research, but how else will you know why people are leaving or choosing another supplier unless you ask?
Market Research on the Cheap For companies that can afford to hire a market researcher, the information you’ll uncover can help you make changes to reduce your attrition rates. But for those that can’t, it’s worth getting friends and staff (if you have them) to split the list and make phone calls. Personal contact is an effective way to show you care.
I recall several years ago, I served on a retention committee for a local nonprofit. Three of us sat in the organization’s library calling people whose memberships had lapsed for several months. The response I got was extremely valuable. Some people were very surprised by my call and the fact that someone took the time to find out why they left the organization. Some had very good reasons for not renewing – moving, illness, a number of logical answers. But some indicated reasons that could have been fixed.
For example, one said her physical disability had worsened and she couldn’t attend meetings any longer without the ability to drive her car. How caring would we have been if we just said, “OK, sorry to hear that,” and moved on? I worked with the executive director to find another member who could drive her there and back. She would never have thought to ask for assistance, but once it was offered, she was thrilled that she could retain her membership and the connection it provided her.
If you relate this to your customers, there may be valid reasons why they jump ship, but there’s a good chance you can save a few by making some simple accommodations or changing the way you do business with them.
Communicate, Communicate Once your company receives a payment or a product gets purchased, and that ends the relationship until the next time you try to sell your customers, it’s no wonder that you’re experiencing attrition. People want to get value for their money. Communicate regularly with your customers and clients. Let them know what you’re up to and offer them added value.
For businesses that claim they don’t have the funds to do this on a regular basis, this is a shortsighted strategy. Your customers can easily grow tired of your selling pitches if that’s the only communication coming from you. Staying “top of mind” is one of the keys to repeat business.
1. Newsletters – in both print and electronic – are ideal in getting your message out and can also be used for other purposes such as media kits, trade shows, client packages, or when you’re a featured speaker and you want to soft-sell your business. To learn more about the differences between print newsletters and electronic ones, check out our e-book, Creating Effecting Newsletters - How to develop compelling, professional newsletters that your audience will want to read. 2. Thank you letters accompanied by coupon offers give your clients and customers a chance to buy your product or service again. You can offer a discount or an incentive for referring another customer; there are a number of creative concepts. You can send these for special milestones, such as a company anniversary, a holiday, or your client’s birthday, for example. 3. Random phone calls are excellent ways to open a dialog with your customers. If it’s manageable, divide the list among select staff (if you have employees) and choose a target date to complete the calls. Hiring university students to help with this can work too, depending on your product or service. If you’re a small business owner, you may want to do this yourself and use the opportunity to softly market your business. This is a good opportunity to see what your customers like and don’t like, often without any prompting required. Listen and then listen some more. 4. Random e-mails can also send a strong message that you care. If you know your customers well, and you’ve segmented them into categories, send them an article or study you found that will be of interest to them. This shouldn’t be about your business, but a topic that relates to their jobs, lives, hobbies, etc. If you have the time and your list is manageable, send these individually with a personalized message. If the list is too great, your company e-newsletter can do the same thing. 5. Surveys, whether conducted in writing, online or by telephone, give your customers and clients a voice. The feedback will be invaluable in determining your communication and customer acquisition and retention strategies. 6. Announcements of new or featured products or services, whether sent by e-mail or snail mail, keep your clients and customers up to date on how your business can solve their problems. Timing is always key, and if your piece gets in front of your customers at the moment they’re tackling a problem that you can help solve, you’ve got a hot lead. Always include a call to action.
Show Appreciation It doesn’t have to be December to show how much you appreciate your clients or customers. Sometimes, sending a personal note with a small trinket in the mail, like a promotional item with your logo on it - something they’ll use - goes a long way in building brand loyalty. People who are loyal are less likely to jump ship.
Or, for those who are regular clients or customers, those who have been with you for a record number of years (1, 5, and 10 years stand out), or those who make a record number of purchases, a handwritten note expressing your gratitude for their business will go far. For larger businesses, a variable data printed card in the mail can accomplish the same thing. For smaller businesses, hold an annual customer open house, serve food and give out small branded gifts to acknowledge your gratitude for their business. This public display sends a positive message and can kick-start a word-of-mouth marketing campaign for your company.
Live Your Brand and Go Above and Beyond When you under promise and over deliver for customers, you’re well on your way to retaining them for life. Ensure that every brand touchpoint in your company – employees, sales literature, trade show displays, your physical office, etc. give your customers an incredible brand experience.
These are but a few ideas companies can do to retain their customers. Brainstorming with your staff, friends and business colleagues will likely produce even more practical tactics. The more you invest in your customers, listen to their wants and needs, and maintain a customer-centric focus, the longer these relationships will last. And who knows – the customer who feels special as a result may become your best brand advocate and refer your business to more and more people. Now, that’s worth a lot.
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