Relationship between customer service and retention

relationship between customer service and retention

Learn best practices for customer service, build customer loyalty, and train be in touch with their customers and make a personal connection. PDF | The aim of this research is to critically evaluate the relationship between service quality and customer retention in Premier Inn Croydon. The objectives. The goal of successful customer service initiatives is to promote customer satisfaction the sale; customer satisfaction is achieved by developing relationships.

And, in an ultimate customer service experience, you may have described the representatives as competent, efficient, and articulate. Dream on, you say? Customer service has become extinct in this day and age? That may be, but it is not difficult to re-energize the customer service team in your organization to gain a significant competitive advantage.

5 Unique Ways to Increase Customer Retention (and Increase Profits!)

In successful customer service initiatives, the goal is to promote customer satisfaction. No longer is this done by attracting new customers and making the sale; customer satisfaction is achieved by developing relationships. Customer service is not just something provided in call centers. Anyone interacting with the end user of a product or service is involved in the delivery of customer service.

As such, everyone in the organization must work to ensure delivery of core business values. Hiring the right people for the right position in the right job influences the potential for employee engagement. If employees are passionate about what they do and the business they are in, they will deliver products and services that exceed expectations.

How Customer Service Drives Customer Loyalty

Employee passion is contagious and stimulates customer satisfaction and return business. Crew members, or employees, are recruited for their enthusiasm and energy; they are then trained to impart product knowledge, promote teamwork, leadership, and communication.

In addition to relationship building and employee training, the tenets of customer service could just as easily be based on civility, common sense, and the Golden Rule.

Eliminate policies that hurt your customers; do more to keep customers happy. In his book, Win the Customer, Not the ArgumentDon Gallegos details why and how excellence in customer service is integral to any business. Gallegos describes an angry customer returning a gallon of milk to a grocery store.

The customer service team was trained to give a full refund, no questions asked. Even though the milk carton had a label from a competitor, the customer service team took care of the customer and issued a refund, earning a lifetime of loyalty.

Your people, and their ability to communicate effectively and strategically, are keys to effective customer service. A customer service team able to handle complaints pleasantly and to diffuse a frustrating situation in a calm and timely way will go far in differentiating your organization from others. Customer loyalty is not just about repeat business.

Was it good value for money? You can use this feedback to continue to improve your product and service. Selling to existing customers will be less focused on price as opposed to new customers, as you might not need as many discounts that you would usually use to attract new customers.

relationship between customer service and retention

And since your existing customers trust you it may be possible to convince the customer to become interested in even more of your products or services through up-selling and cross-selling.

Still have doubts whether customer retention is something to put your minds to? Bain and Company also report that attracting new customers will cost your company times more than keeping an existing customer! Businesses need to take a proactive role in retaining clients. Making the most of your existing customer base and capitalizing on every opportunity to maximize revenue are some of the best ways to make your business more profitable. How can CRM help you increase customer retention?

The secret lies in that one word: And while CRM software does not manage customer retention by itself, it will provide you with the tools to help you manage the activities around customer engagement. The question is what do you really need to do to influence customer retention?

relationship between customer service and retention

Once you start thinking and putting your efforts into customer retention, it is essential to consider the reasons and factors that enhance repeat purchase of your product or service. And you and I both know, we want to feel like individuals, not like targets, A good customer database can provide a foundation to build long-term customer partnerships. Keeping your VIP customers The most obvious way to ensure customer retention is to prevent a customer from leaving. And if you pay attention, you can always see the signals of your customers impending departure.

First, create a list of all of your VIP customers, and then create a list of all sales made within the last six months using your CRM software. Target customers with special offers The more you know about your customers, the more you can tailor your approach to each individual. Identify ways to convert their interest into an actual purchase by offering them special discounts or some additional value to your product.

relationship between customer service and retention

Using your CRM software, you can create a list of all open sales activities and compare that with a list of all contacts that are subscribed to your newsletter. The result is a list of contacts that are interested in your product but so far, have not initiated a sale. Rewarding your most profitable customers Information gathered in CRM software can reveal which of your accounts are responsible for the most revenue.

How Customer Service Drives Customer Loyalty | NBRI

This information lets you budget your time accordingly and allocate resources where they will have the most return. Identifying these accounts can also help you develop strategies for cross-selling. First, create a list of your most profitable customers and export this list from your CRM software.

Now, you can start to follow up and let them know about the rewards and incentives in order to make them feel special, so they continue to stay as your most profitable customers.

Personalizing your follow-ups A relationship is something that is established between people, and CRM software helps make it easier to see your customer as a person and not just a number. When completing the necessary fields when registering a contact, use personal notes and other bits of information that allow you to personalize your outreach.

With this information in hand, you can adjust your follow-up strategies accordingly. The effects of personalization cannot be understated, as recent research in the UK found that personalization using purchase history, user preferences and other relevant information found in CRM software delivers a high impact ROI.

How would you do that?