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Customer Retention – Increasing Profits

Customer Retention – Increasing Profits
13
Feb

Statistics from NOP indicate that a 25-85% gain in profits from reducing customer defections, but that in a remarkable 73% of the cases studied, businesses didn’t even try to keep dissatisfied customers, in spite of the fact that 35% of those customers said they would have stayed if they’d just received a simple apology.

Consider the implication: it would be easy to turn that high level of customer defection around, with a major increase in profits, just by apologizing to unhappy customers. Could anything be easier?

Apparently (at least based on those statistics) almost three quarters of the vendors in question thought that doing nothing was easier.

Was that what they really thought, though, or were they simply oblivious? Unhappy customers who are ready to defect generally don’t give any warning. They just take their business elsewhere without voicing any complaint. A vendor who doesn’t know this is going on doesn’t have any way of implementing a customer-retention policy, if one exists.

The bottom line is that it’s up to the vendor to pro-actively survey customers, and to have a system in place for identifying customer-relations problems and remedying them. With such a system, this very basic form of customer retention does become easy. If a survey shows that a customer is unhappy, and identifies that customer, it isn’t difficult at all (particularly with an automated system of accountability), to let the store-level manager know that there’s a problem, and that an apology is in order (along with any other appropriate remedies).

In a rapidly changing business environment, it’s important to keep one’s survival tools up to date to stay on the winning side of the statistics.

If you would like to know more about how the ASK LISTEN RETAIN System or how it can help create customer retention and loyalty, please contact us.