Nowadays, you will find a wide range of brands offering a variety of products for every class of consumers. It is a proven fact that a brand is only successful if it offers a quality product, markets it well to the public, has an affordable price range, and has after-sales service facilities. However, due to an increased competition in the business world, companies are trying their level best to attract new customers and retain their consumer base.
Customer retention is the activity that an organization undertakes, in order to reduce customer defections. In order to sustain itself in stiff competition, businesses have to follow such strategies, right from the time they get a new customer, till the period the customer uses the product. It is not just a matter of offering quality products, but also about how the company provides proper service and creates dependable goodwill in the market.
If focused on, it inevitably contributes to customers being loyal to the product and brand. According to research by John Fleming and Jim Asplund, authors of 'Human Sigma: Managing the Employee-Customer Encounter', retained customers generate 1.7 times more revenue as compared to occasional customers.
Some Basic Strategies
Firstly, the seller should make it a point to provide the best customer service, be it to any type of customer. In order to generate brand loyalty, marketers and salesmen should create good personal relations with consumers.
Customers tend to jump to another brand, just because they do not receive the after-sales service that they expected they would. For example, if it is a technical appliance that has been sold, the company should pay attention to customer's complaints regarding improper functioning of the product and provide technical support as soon as possible.
After-sales service also includes conducting satisfaction surveys and obtaining feedback from customers for improving the reliability and quality of goods. Another good retention tip is to include contemporary business techniques such as offering memberships and frequent-buyer programs to regular consumers. These programs should offer heavy discount shopping to regular customers, thereby keeping them engaged with the brand.
You also have the option of using technology as a method of giving customers what they expect. Companies can set up electronic order systems and email notifications regarding latest product offerings and deals. This would allow consumers to contact the company and carry out purchases conveniently. Customers can even be impressed by providing them with tips regarding usage of the product. For example, if the product being sold is a touchscreen laptop, the seller can include an educational guide regarding how touchscreen works and tips for proper care.
There are many other innovative methods to retain customers to a particular brand for a long period of time. Remember that the key to customer retention is improving customer service and satisfaction.