From social media to group meetings, you’ll see conversations around the upcoming recession. There are evident signs of the world hitting yet another economic slump.
Poor economic conditions can impact customer behavior and expectations, making it difficult for businesses to maintain revenue, particularly if they rely on repeat customers. No business wants that; we’re sure you don’t either.
Solution: Customer Retention.
Shifting your focus to customer retention can help maintain revenue and stay afloat in the recession. We say this because the probability of selling to an existing customer is 60-70%. Whereas the likelihood of selling to a new prospect is 5-20% only.
We’re here to help you with the best customer retention strategies that help you keep as many customers as possible, maintain revenue and swim through this scary pool of recession!
When customers feel like they are more than just a number, they are more likely to remain loyal to your brand, even in tough times. Think about it:
With personalization, you’re creating a bond with your customers that goes beyond just the transactional relationship. So, when customers feel like you care about their individual needs and concerns, why would they leave?
Moreover, 75% of business buyers expect companies to provide personalized experiences. And this is during normal times—the expectations are probably higher during economic turmoil.
Don’t you want to personalize your customer service now?
We know the answer, so here’s how you can incorporate personalization into your customer service efforts:
In a bad economy, customers are looking for more than just a good product at a low price. They want to feel valued, understood, and supported. Personalization is a way to achieve customer service-led growth and differentiate yourself from your competitors.
There are two scenarios:
Scenario A: A frustrated customer is kept on hold for answers because the customer service agent needs to consult three different people and go through a complex route to get the solutions.
Scenario B: A customer service agent is provided with the latest tools, adequate resources, and training to give accurate and quick solutions to the customers that reach out to them.
In terms of customer satisfaction and, as a result, retention, the outcomes from both of these scenarios will be extremely different. In scenario A, the customer will most likely move to the competitor, and in scenario B, the company will earn many loyal customers.
The difference lies in agent empowerment.
When customer service agents are not micromanaged, are provided with adequate resources, and are given appropriate authority and responsibility, they’re able to provide the best service. As a result, customers feel valued and stick to your brand.
Alright, enough about the importance of empowering agents. Here are four ways to actually do it:
Economic downturns are stressful times. But these are also times when your customer expresses their concerns the most. Moreover, if you don’t know how your customers feel about your brand and products, customer retention can be very challenging.
This makes listening to what your customers want an important strategy for customer retention.
Alright, let’s get to the juicy part.
While it may sound simple, listening to your customers’ wants can be complex if not done properly. Yes, listening to your customers is mainly collecting feedback, but there are multiple ways to do that.
Here are the different ways to listen to your customers:
The list obviously does not end here. There is much more to it. You can get creative and find your own ways of customer listening. A new emerging trend for customer listening is creating a voice of customer program; maybe try this out?
Whatever you do, remember to always ask the right person, the right question, and at the right time.
If you fly with Southwest Airlines, you get flying points. The more you fly, the more your points are. These points can then be redeemed for free flights or other perks.
With H&M’s H&M NOW program, customers get 1 point for each dollar spent. At 200 points, they get a $5 voucher.
What do you think is happening when brands follow such practices? It makes the customer keep coming back to spend more.
Result? Increased customer retention.
Now connect it with providing a loyalty program during a bad economy. People will still be willing to buy your products, but now they’re also getting rewarded for their loyalty.
Who wouldn’t love that? Plus, we’re not the only ones endorsing loyalty programs. According to Bond survey, 79% of consumers said a brand’s loyalty program encourages them to continue doing business with it.
You can start by offering a loyalty program as simple as a points-based program. In fact, this is the most common loyalty program out there. Brands like Starbucks, Sephora, Bath and Body Works, and Chiptole offer it.
If you want to take it up a notch, explore options like tiered or paid loyalty programs. Amazon Prime is the perfect example of a paid loyalty program.
Think of your business as a restaurant. You may have the most delicious food in town, but if the service is terrible, customers are unlikely to return.
Similarly, in any business, providing a great customer experience is essential for retaining customers, particularly in a bad economy when customers are more likely to be cautious with their spending.
But wait, what does improving customer experience mean?
Improving the customer experience means creating a positive experience for customers at every touchpoint with your business, from browsing your website to interacting with your customer service team to receiving their orders. It involves understanding the needs and preferences of your customers and working to meet or exceed their expectations.
Ways to improve customer experience include:
When you improve your customer experience using all these ways, you get:
As a business, why wouldn’t you want these benefits in a bad economy?
With the uncertain economic climate, customer retention is more important than ever. With consumers looking to spend less, businesses need to ensure that they are doing everything they can to retain existing customers and drive revenue growth.
This makes it essential for your business to use the best retention strategies we’ve provided.
Remember that in a bad economy, customers are more discerning about where they spend their money, and businesses that prioritize customer service will be more likely to weather the storm and emerge stronger on the other side. Prioritize customer service using a platform like Helpwise that blends AI with your processes.
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