Customer retention strategy. What is its essence?
The client is the basis of business and this is an axiom. You cannot build a business without a client, because it is the client who brings the money to the business. Everyone knows about it, as well as the fact that clients are very picky guys. Picky they are not out of the blue, but they have every right to do so. Clients pay money and have the right to choose what to pay for and what not. This forces the business to be constantly energized, because if you do not give the client what he wants, the client will leave.
To prevent this from happening, so that customers do not leave, do not run away – you need a strategy of customer retention, which will allow you to purposefully retain them purposefully, systematically, constantly and most importantly. In order to build the most effective strategy, the client must be kept at the level of his idea, because at the core the client is a person, and the basis of a person is his idea. It can even be said that the strategy of retaining customers is a strategy of specifying new life paths that are beneficial to the customer.
How can this be achieved? This can be achieved only if we offer the client a new idea that no one has previously offered to him and convince him that this idea will make him very pleased. The client is happy to accept a good new idea, because he intuitively feels that a new idea will make his personal idea more advanced, and therefore more competitive, like the client himself.
In theory, everything is good, but in practice everything is not always so good, because the inertness of thinking hinders the realization of all this. The eyes see the material component of the client, but do not see the ideal. As a result, the usual way of thinking draws the client as something static, as something that has always been, is and will be in the same state. In reality, this is not the case. The client is a living person based on his idea. This idea is constantly changing, and behind it changes the man himself.
The one who first proposes to the client an idea that develops it will ultimately receive the client, but only until he has a need for a new idea. Accordingly, a customer retention strategy should be long-term, because customer retention is an endless process, it never ends. Those who finish it first will be the first to leave the market, as a rule.
For this reason, in developed countries, a large amount of money is invested in customer interaction systems. They know very well the price to customers, as well as the price of losing customers. They know very well that it is much cheaper to manage than to create new clients. The ratio between the cost of creating and the cost of customer retention is on average 10/1. This means that you need to spend 10 times more money on creating a new one than on keeping an existing client.
Customer retention strategy is profitable
Retaining customers is profitable. On the one hand, this is 10 times cheaper than creating new ones, but on the other hand, a whole ten or so clients can be retained for the amount you need to spend on creating one client. This means that if you manage clients and not create them in return for those who have left, you can free up money for something else. If you are able to retain customers, then you do not need to search for new customers.
For example, money can be spent on the purchase of new equipment or on the financing of the staff motivation system, which will positively affect the overall level of competitiveness of both the business and its products or services. To retain customers, you need a specific algorithm. Without the algorithm to keep the client will not work, and he eventually goes where he himself needs.
Customer retention strategy
Accordingly, in our case, the strategy of customer retention is the customer’s motivation for them to remain ours and not to go to a competitor. There is no doubt that they will go to a competitor without retention, because there are enough examples. These examples are hundreds of thousands around the world. Every year, hundreds of thousands of businesses cease to exist, because they have not enough customers. Lack of customers is the most significant reason for closing a business.
Customer retention algorithm
The customer retention algorithm is fairly simple. Since the client is basically an idea, it means, first of all, you need to highlight its idea. Accordingly, the strategy of retaining customers begins with the allocation of their ideas – this is the first stage of the algorithm. If there are few customers, you need to highlight the idea of each of them. If there are many customers, it is enough to segment them and highlight the idea of the customer segment.
This is done in the same way as market segmentation, because the aggregate of customers is in fact the market. To highlight the ideas of customers in the noomarketing uses a special tool. He is currently undergoing testing, and very soon there will be his official announcement on this site. In principle, the idea of the client at the subconscious level is known to everyone.
Every person feels very well for any other person. But the problem is that these feelings are subconscious.