Why You Need To Keep Your Customers Close
There is no doubt the competition among retailers is becoming tougher and new strategies are being adopted. Subscription is becoming the new trend now. Industries are moving towards modelling their services around subscriptions as a way to improve customer retention.
This is important because retaining existing customers is much cheaper and easier than attracting new ones. Subscriptions have become an effective method to secure continuous patronage and customer retention is the most appropriate vehicle for that.
However, you need to understand the 5 elements of customer retention. These elements will serve as a guide toward customer retention. These elements are:
- Customers’ experience
- The ease with which they enjoy your service
- Cost of enjoying your service
- How to maximize their usage
- The challenges they have with your service
You need to understand your customers’ experience while using your service. It is possible to find out what they like about your service and what they don’t like. This will help you improve their experience and prevent them from switching to a competitor that offers a better experience.
The ease with which they enjoy your service
Your service should be very easy to use. If it is not, you must find a way to make it easier. For instance, people delete a mobile app that they don’t understand easily. If your service or product does not come with ease of usage, chances are high that your customers will migrate to another service that is easier to use.
Cost of your service
Cost is the biggest factor in choosing which company to patronize. So, you need to constantly monitor what your competitors offer in terms of cost. When the cost of your service is too high, it is not likely that customers will renew their subscription. It will be worse if several competitors offer lower charges. So, you need to monitor what others offer so that your price will not be too high.
How to maximize their usage
You need to help customers to maximize the usage of your service. In other words, you should find a way to give them more value for their money. For instance, telecommunication companies may decide to add free or unlimited SMS services to a particular service plan. This is another way to compete. Instead of reducing your price, you could increase the value for each price.
Challenges with your service
Every service comes with a challenge. You need to understand the challenges that your customers are facing so that you can alleviate the situation for them. It is needless to remind you that removing the challenges will improve their experience. For instance, All Nokia smartphones used to run on windows but Nokia realized that a lot of mobile apps do not work well on windows, so they launched a few models built on Android. Now their customers can either go for windows models or Android models.
You need to keep your customers close to be able to get the necessary information for the five elements outlined above. In other words, you need to keep them close to find out ways to retain them.