What Is the Importance of Customer Loyalty and Retention?

Customer continuity rate refers to the proportion of enterprises that continue to maintain trading relationships with old customers. It can also be understood as customer loyalty.

Customer continuity

Right!

Customer continuity rate means that the company continues to

Customer retention

Means that the company continues to

This indicator can be described by the growth rate of existing customer transactions.

Existing customer transaction growth rate = (current customer transaction value-previous customer transaction value) / previous customer transaction value

Enterprises usually use repeat purchase behavior to measure the level of customer retention, which has played a significant role in increasing the company's profitability. Companies that excel in customer retention tend to be far-sighted and have a strong competitive edge that differentiates them from their competitors.

One of the effective ways to improve customer retention is to provide superior customer service. Excellent customer service can produce a satisfactory customer experience, increase customer loyalty, and ultimately achieve long-term customer retention.

Here are seven specific suggestions for improving customer service:

1. Take customer praise seriously

The National Transportation Safety Board (National Transportation Safety Board) is a typical example. The agency will deal with every mistake carefully to ensure that the same mistake will not happen again. All companies should emulate this attitude, take every customer complaint seriously, and ensure that the company does not fall twice in the same place.

In addition, making good use of customer complaints can urge companies to actively seek new ways to improve their products and services. If there is a client who praises your company, don't be complacent, you should let yourself go one step further on the original basis.

2. Seek customer opinions

Meeting customer needs is critical to improving customer retention. You can ask customers for opinions through media such as questionnaires, online surveys, telephone or email. At the same time, this method can save your company a lot of market research expenses.

The company may consider planning a customer representative group through which to gather representative ideas and needs. In return, the company can offer a certain discount on their next purchase to express their sincere gratitude.

3. Develop a loyalty program

Many airlines have developed comprehensive loyalty programs and have achieved satisfactory customer retention. The well-known coffee chain Starbucks is also a typical example. They have closely combined customer service and loyalty programs, generating a large number of repeat customers. The company can develop a corresponding loyalty program according to its own situation, for example, sending different discount emails to different customers in the database.

4. Smile service

Although not every business operator firmly believes that "the customer is always right" or "the customer is God", when the customer has emotional behavior, the company should use the smile service to calm the customer's emotions and avoid the deterioration . Smile service is always wrong. It can positively reflect the mental outlook of your company and help your customer retention rate.

5. Be a solution provider

Customers are a lot smarter than before, and they are keen to catch any sales traps. Therefore, companies should now consider how to be a solution provider so that customers can feel that you really care about their needs.

Listen to your customers and let them know that you don't just want to make money from their pockets. Instead, you should provide a win-win way to help customers meet their needs, which is the trick to improving customer retention.

6. Be a value provider

Many companies claim to provide value to their customers, but few companies really understand what value is. In fact, providing value to customers is not complicated, as long as you first seek to pay, and then ask for returns.

For example, as a food company, you can send email to your customers and provide them with free juice preparation methods that other competitors need to charge for. This allows you to differentiate from your competitors while also providing value to your customers.

7. Provide memorable services

When customers experience another unforgettable service, they often become loyal fans of the company. This phenomenon often occurs when customers face difficulties and need help from the company. At this point, the more urgent you are, the more satisfied your customers will be. For example, you can stipulate that customer service calls must be answered within 3 rings, to avoid automatic voice response or self-service menus that make customers confused like a maze.

These 7 suggestions above suggest some simple ways to make your company make a good impression on customers and then retain them. In the actual application process, you should learn from each other according to the specific situation of your company, and remember to move blindly.