SUSTAINABILITY . Customer retention is the process through which an organisation embarks on measures to retain its customers. It is also a major activity that clearly elevates the status of the customer as a key factor in the growth of any business organisation. Customer retention is not only linked to the product purchase or service patronage but correlates to service delivery and customer satisfaction.It should however be stated that customer retention is not only providing service but also meeting and exceeding customer expectations. Through this, customers become loyal advocates for your organisation. This explains why organisations need to create customer value rather than maximising profit alone. The key differentiator in a competitive environment is the consistent superior customer service delivery. Customer retention and corporate culture Customer retention is not just a buzz word but it should be properly outlined in a corporate strategy document. There are competitive pressures within the market place and organisations need to build a customer centric culture. This should be stated in clear terms as a corporate vision and this drives the process through. Today’s customers are highly sophisticated and demanding. Power resides with the customers and every organisation needs to focus on this. When customer retention is outlined in a corporate strategy manual, it enhances a seamless flow of action plan to maintain a beneficial relationship with customers Why customer retention? There are several identified benefits derivable from customer retention. Every organisation wants to retain customers but very few implement positive strategies aimed at customer retention. Here are some benefits of customer retention: Customer retention thrives on the platform of customer loyalty. This in essence means that customer loyalty is a major benefit of customer retention. Customer loyalty occurs when customers do not look forward to patronising competitive products or services. Loyalty is achieved more through consistent customer engagement and relationship building. This is why it is very important for organisations to provide effective and courteous customer service which builds customer loyalty. Customers become advocates of such companies and their products. This is achievable through words of mouth marketing. When a customer is satisfied, he disseminates such information to all and sundry. When a customer experiences excellent service delivery consistently for some years, he becomes an ambassador who promotes the values and offerings of such an organisation to other people. This is a potent tool of marketing and the resultant effect is patronage which increases profitability for the organisation. This is why companies should avoid negative perception of their services. Business organisations exist in order to grow their bottom line. This is strongly predicated on the ability to retain existing customers. A good customer retention strategy also has spiraling positive effects on other operational areas of an organisation. Through customer retention, more customers show interest in the organisation and this leads to expansion and growth. There will be huge demand for product and services that will increase profitability. When customer retention strategies are properly implemented, they boost employees morale and increases productivity. Employees also benefit from the strategies as they are part of a successful business enterprise. Through this, they gain a sense of security on the job. Employees also derive fulfillment when customers are happy and satisfied with their services. Ways to enhance customer retention included: Exceed customer expectation It is expected of organisations to not only meet customer expectations but exceed them. A very effective way to retain customers and promote loyalty is to under promise and over deliver on customer expectations. It is also good to set customer expectations early and develop appropriate strategies not only to meet them but also exceed same. Customers are quick to remember negative experiences in their interaction with any organisation and this should be eliminated or reduced to the barest minimum. Demonstrate professional expertise Every organisation needs to showcase its professional competence in its chosen area. If any organisation shows strong expertise, it goes a long way to retaining more customers. Customers do not only want to purchase a product rather they want professional counsel and technical support. Through this, relationship is built and it makes customers to be dependent on such an organisation. Build relationships It is important to state that relationship building is key to any overall growth of an organisation. Relationship strengthens the bond between an organisation and the customers. Companies should find their ways into their customers’ lives and connect with them. When relationships are built with clients, it goes a long way in earning their trust. It is very important for organisations to place premium value on one-on-one relationship with customers. Pro-activity is desirable To retain customers, companies need to be pro-active in their approach. What this means in essence is that an organisation pre-empts a scenario before it actually occurs. A pro-active measure helps an organisation to eliminate problems before they happen. This is only achievable when an organisation establishes a dialogue with the customers. The rationale for the dialogue is to prove to the customer that the organisation has respect for them and concerned about their needs as well.
Posted on: Fri, 28 Mar 2014 04:17:40 +0000
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