It takes months to find a customer… seconds to lose one.
Ignoring customers’ needs and providing bad service experiences ultimately results in losing customers to the competition. It is potentially the worst customer service mistake a company can make.
Companies failing to deliver service are at risk of losing not only current customers but also potential ones.
Negative word-of-mouth can have a disastrous impact on a company’s online reputation causing would-be buyers to look elsewhere.
This is due to poor customer service. Consequently, bad service leads to lost revenue and lowered profits.
Poor customer service affects all aspects of a business. It can also contribute to the loss of frontline employees. Having to deal with dissatisfied customers on a daily basis makes the job more stressful and eventually leads to burnout.
The resulting high employee turnover further damages a company’s image and creates additional expenses for recruiting and training new sales agents.
Not resolving an issue
Not resolving a service issue during the first contact or not being able to do it at all is another major pain point for consumers.
Customers make multiple attempts to resolve their recent products problems. Their problem was never resolved .Bigger the company bigger is service issue.
Why?
Companies have hired the wrong people for the serving departments.
Head of Serve Departments are too secure with their paychecks. Supervision is lacking.
Board of Directors are there only for meetings. They have no clue as to what happens after the sale of the products.
ONLINE COMPLAINTS ARE A WASTE OF TIME.
CONSUMER SERVICE can be improved by Hiring Knowledgeable qualified people.
Think of customer retention as a process where a business aims to convince existing customers to keep purchasing their products or services.
Since a customer has already made a purchase, it’s different from lead generation, which is the effort involved in capturing contact information of businesses or individuals who are likely to buy a product or service.
There is no follow-up after service by techs from these companies. I will not renew my contract.
Disclaimer: The information on this POST is not intended or implied to be a substitute for professional advice. The opinions expressed within this article are the personal opinions of the author. All content, including text, graphics, images and information, contained on or available through this article is for general information purposes / educational purposes only, and to ensure discussion or debate.
Thank you …Instead, customer retention is focused on existing customers. The goal is to increase repeat purchases by building customer loyalty through excellent customer service, product value and a distinct advantage over similar products or services.
Customer retention is vital in driving repeat purchases and ongoing value from your customer base. One oft-cited rule of thumb is that it costs five times as much to acquire a new customer as it does to retain an existing customer.
Two of the most important factors in improving customer retention is understanding your customers’ satisfaction and loyalty. Businesses also need to understand any operations that may turn off potential and existing customers, such as slow or poor customer service or a faulty product.
For example, if your business had 2,000 customers at the start of the quarter and 1,300 by the end, you’d apply the above formula as follows:
700 (number of customers lost) / 2,000 (total customers at the start of the quarter) = 0.35
This means that your attrition rate, or the percentage of customers that left during that quarter, was 35%.
To calculate customer retention rate, determine the number of customers you acquired over a specific period. Subtract that figure from the total number of customers at the end of that period. Then you take this number and divide it by the number of customers you had at the beginning of the period.
Customer Retention Rate
(Total customers at end of period – new customers acquired) / Customers at beginning of period * 100
For example, let’s say you have 2,000 customers at the start of the quarter and acquired another 400 customers but still have only 1,300 customers at the end of the quarter.
Customer Retention Rate
(1,300 – 400) / 2,000 = .45
This means you’ve kept 45% of your customers over the last three months.
Do you want to add a word or two?…..
Repeat Customer Rate
The repeat customer rate measures the chances an existing customer will make more than one purchase.
To calculate your repeat customer rate, take the number of customers who made more than one purchase and divide it by the total number of unique customers.
For example, if you have 4,000 customers who made more than one purchase in a month and 7,500 unique customers, your formula would look like this:
4,000 / 7,500 = 0.53
This means you have a repeat customer rate of 53%.
Your Comments……
Customer service seems to be dying on the vine as more and more companies are moving to automated and outsourced models versus the live versions that have been the norm for the last 50 years.
The problem today is that it seems to be taking a back burner in many organizations these days.
Customer service (CS) can get overlooked and left unchecked will get out of hand, unless you monitor what is happening daily.
Personal experience over the last 10 years along with several cases has proven to me that many businesses, both large and small, just don’t care or want to care.
They’ve thrown out the baby with the bath water and are just looking at the front end. In many industries, CS is slowly but surely becoming an endangered species.
This is where you can turn customer service into a sales and customer retention machine. Not a literal machine, but a department or part of your small business that is bridging the gap from time of transaction to the next transaction.
As a small business owner, if you are investing in advertising and marketing on a frequent basis, then you have a client acquisition cost or what we refer to as CAC.
What this means is that each and every client you acquire has a cost attached to it.
It could be a dollar or maybe even twenty-five dollars.
No matter, you need to maximize the return on your investment in marketing and with customer service you can do just that, if the proper procedures and training are set in place.
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