When it comes to business growth and longevity, keeping customers is just as important than gaining new ones. There are many reasons for this, including the costly time and legwork required to attract new customers. Research indicates it can cost six to seven times more to acquire new customers than it does to retain current ones. Additionally, customer retention can have a huge impact on profitability. By boosting customer retention rates by just 5 percent, companies can increase their profits by up to 95 percent!1
However, despite good intentions, businesses may inadvertently be driving customers away. Here are three common reasons customers jump ship and steps businesses can take to prevent it from happening.
Reason 1: Customer communication preferences were overlooked.
How and when businesses communicate with customers is extremely important. Most consumers want to receive brand communications on their own schedule.2 Additionally, 90 percent of consumers think it’s important that companies honor their preferred communication method.3 It’s also important to note that these preferences may evolve over time, and 65 percent of customers expect companies to adapt as their needs change.4
Solution: Execute an omnichannel communications strategy.
The most reliable way for businesses to adapt to customer communication preferences is through omnichannel communications. This customer-centric approach integrates channels to provide a unified experience. With this strategy in place, customers can choose whether they want to receive messages via text, mail or email without missing important communications. Be sure to empower customers to make changes to those preferences any time they want with easily accessible links.
Reason 2: The customer didn’t feel valued.
How customers feel while working with a company plays a huge role in whether they will continue to support them. More than half of customers will stay loyal to a brand that “gets” them.1 In fact, only 17 percent of U.S. consumers feel truly valued by the brands they buy from, leaving 83 percent feeling undervalued.⁵ It’s clear that maintaining customer relationships must be an ongoing mission for businesses.
Solution: Stay in touch with customers.
There are many ways that companies can arrange regular check-ins with customers while adding value. For example, offer promotions or host customer appreciation events and publish engaging social media content for customers to interact with. Furthermore, companies can look for opportunities to include customers in business decisions, such as new product focus groups.
Reason 3: The customer had a negative service experience.
Customer service is a top consideration as people decide which companies they want to work with. Over 60 percent of consumers have lost trust in a company after a poor experience or communication.3 Additionally, more than half of consumers switched to a different company because they had better customer service.6 At the end of the day most customers say the key to good customer service is resolving their issue quickly.7
Solution: Make sure your customer service delivers.
Proactively identify and address potential holes in your customer service. An internal audit or customer survey can reveal valuable ways that service needs to be addressed. A survey is also a good opportunity to ask about communication preferences and demonstrate you care about the customer!
A Partner to Help You Succeed
From direct mail to e-solutions and transactional communications, there are many strategies you can utilize to connect with customers and keep their business. Matrix can help you simplify the process and execute marketing programs that deliver results.
Our targeted e-solutions and print campaigns keep the customer first, providing them with the information they need and allowing them to easily interact in their preferred way. Contact us today to get started.
