Customer Service Retention Strategies
One of the main strategies a business owner should consider for their customer retention is focusing on the customer’s experience and overall customer service. You can't build customer loyalty without exceptional customer service to keep customers coming back. I encourage you to really get to know who your current customers are, and train your team accordingly.
Be sure you're hiring the correct staff to interact with them, and continue to educate your team by letting them know they are the face of your brand. They need to understand the responsibility which goes along with that, and take pride in what your company stands for. Be sure to use the five step leadership framework (Inspire, Communicate, Provide, Model, and Encourage) we discussed at the beginning of the book. This will ensure they want to stand behind, and take pride in, your company. Customer retention should focus on the customer’s experience first, and your profit second.
Retention Strategy 1 - Show Your Appreciation
A simple strategy that is often overlooked is a handwritten thank you note. Don't underestimate the power of a simple gesture. Companies like Zappos, Nordstrom, and yes, even Love Bird Chocolates are known for thanking their customers via handwritten letters. They understand that using traditional, handwritten thank you notes are a low-cost, high-impact customer retention strategy.
It doesn't have to necessarily come from you, the business owner. You can simply include your actual signature on every single letter that goes out. This speaks volumes to your customers and takes little time. Your customer will feel valued because most business owners would never take the time.
From the marketing side, you might want to add a coupon, such as “get 10% off your next order” to entice them back in. The companies I've implemented these strategies for quickly realized the simple power of handwritten notes and giving customers an incentive to spend more with you by giving a discount on their next order. Happy customers = higher profits.
Retention Strategy 2 - Know Your Buyers
Another strategy is to reduce the friction for your potential buyer. All businesses, no matter the industry, are going to have to sell to the three different types of buyers. These three are the main types of buyers identified by neuroeconomic experts.9
What are the three different types of buyers? Let me introduce you to the tightwad, the spendthrift, and the average spender.
Tightwads, also known as the minimalists, have the mindset: “I'm only spending money on practical things like clothing, food, and shelter.”
Spendthrifts, also known as the Consumers, think, “I'm going to spend all the money I possibly can, and then some. More is more!”
The Average Spenders, also known as the investors, think, “Spend more to make more; I’m in if something is a good investment!”
By using some simple language differences to cater to those three types of buyers, you can grow your business. Work smarter and not harder by choosing your wording correctly. Rather than saying a $5 fee, try changing the language to state a small $5 fee; reframe it in such a way that something becomes more digestible for your conservative, minimalistic buyers.
Retention Strategy 3 - Don’t Just Sell, Educate
When you have an existing relationship with your customers and when you've already provided some sort of educational value, the revenue will follow. Customers almost always enjoy receiving recommendations to help them in achieving their personal goals. So, provide free information like a PDF they can download, or even some in-person info as to why they might need a more expensive service you offer, so they can get the maximum results they seek. The goal is to always exceed your customer's expectations by educating them, so they not only see the value in what you're offering, but they will also feel valued.
Retention Strategy 4 - The Power of Social Proof
There are so many tactics that allow stronger and better retention, but by far, one of the easiest and most enjoyable ways is by utilizing and leveraging the power of social proof. My friend, #1 International Bestselling author and marketing expert Rory Carruthers, taught me the importance of using credibility factors in one's marketing. Credibility factors come down to using either awards or well-known logos that have been involved in something you've done or accomplished.
Have you been awarded something or featured in a magazine or media outlet? Use these logos in your marketing. Brand recognition by major media outlets, local news, and publications will create immediate trust between you and your customer. You can use the “featured in” media logos in your bio, on your business cards, and your website. Using these credibility factors will position you and your business as the authority and keep your customers coming back.
Credibility factors go hand in hand with social proof. Take Yelp for example. Let's say you are considering going to a restaurant, and they have twenty-five negative reviews and only two positive reviews. There's no way you'll even think twice about giving them the time of day. Written testimonials are commonly the most effective strategy for getting people to listen. Now add a visual to it, like the recognizable logo, and that’s a winning combination.
Retention Strategy 5 - Reward Your Loyal Customers
When your customers go out of their way to recommend your product or service to others, let them know that you see it, appreciate it, and reward them for it. If you see someone recommending your business on social media, be sure to acknowledge them. It shows them you're paying attention and their time is valuable to you.
Retention Strategy 6 - Put Aside Your Pride
If you're losing your customers, it's time to reach out and ask why. Your customers will tell you everything you need to know about why your business might not be doing as well as you hoped. By conducting a survey, you might just learn your favorite employee is actually extremely rude to your customers, or your food is overly salty. You have to be willing to not only hear them, but truly listen and take immediate corrective actions. You will have an opportunity to win back your customers’ trust by honoring their feedback, and following through on the corrective action.
First-Time Customers
Make sure every person that comes through the door is welcomed appropriately and in a timely manner. If a customer is not promptly greeted or acknowledged, it immediately starts to shut them off from anything you're going to offer them. Think about the last time you went to a restaurant. If you walked in and waited for over five minutes without anyone acknowledging you were there, you’d likely walk out and find another place. If they can’t simply acknowledge you, or at least get your name on their waiting list, is the food even safe to eat? It doesn't matter if they're pulling up in their car, walking through the door, or coming to your website. Your customer must always feel welcomed, whether it's a stated “Welcome” or letting the customer know you will be right with them. The salespeople or representatives need to let the customer know they’re going to be taken care of.
If you are a service-based business and your service takes a little bit longer than average because you're offering quality over quantity, let your customers know right away how long they could be waiting. It could sound as simple as, “Thank you so much for coming in today. I want to be respectful of your time, so I have to let you know we’re running about a half hour behind our average time, did you still want to put your name down?” From there, the customer can decide if they want to stay or not. This doesn't set up a false expectation that the service will be quick. Remember: one of the things people want is more time. As the leader, drive this point home with your team. If the customer decides they don't want to wait, always provide an incentive to return when it’s convenient for them. One way to do this is to give them a business card that clearly states the special offer is specifically for them. “We apologize for not being to assist you at this time. Please return within 7 days and receive 15% off your service over $100.” Be sure to sign and date the card so it cannot be duplicated. Always equip them with an incentive to come back.
&n
bsp; Subscription Retention
If you offer a service that enrolls customers in a monthly subscription, it’s important to continue adding value so the offer does not become stale. The very last thing you want is your customers unsubscribing. Let’s say you had a customer enrolled with the subscription for three months, and they are no longer using the subscription because they don’t have enough time.
The goal is to provide your customers with a service that saves them time and money. So, you could conduct a small survey which asks them why the current offer did not work for them. Ask, “How can we make this more enjoyable for you?” Depending on what their answers are, the automated system can provide them exactly what they’re looking for. Perhaps a different subscription offer, a simplified one, which will save them time at a discounted rate. There is nothing wrong with offering a customer a discount on a subscription to keep their business. Discount the service for three months, and then go back to the regular pricing, as long as the customer agrees.
Always continue to add value so the customer doesn't have to question why or what they are paying for with your service.
Remember, it is far more cost effective to retain current customers than it is to market to new ones.
Upsells & Adding Value
The customer must see the great value in what you’re upselling. Let's look at McDonald's as an example:
Customer: “I'd like a Big Mac. I’m really hungry!”
Employee: “Would you like fries and a soda with that?”
Or better yet: “Would you like to supersize; it’s only an extra $.99 cents?”
By asking these questions, they upsell in a simple manner as part of the check out process. It provides something people will most likely want. The majority of people are looking for an easy yes. Something that doesn't have to be explained in depth. Keep the upsell simple and valuable.
Upsells should have high perceived value and low cost to the business. Use the language your customers want to hear. Engage with them in a way where it is clear you have a legitimate concern about the problem they're wanting to solve and you're going to solve for them. That's how you're going to not only establish the customer and business relationship, but also provide them the best possible service to keep them coming back.
Repeats, Not Redos
If something is done incorrectly or has to be redone, it obviously cuts into the business profits. Maybe it’s having to refire a food dish. But even worse, it hurts the company reputation. Keep your team trained to avoid redos. Getting things right the first time, complete with a “wow” factor, will keep your repeat customers.
Retaining Customers
Action Steps
I can't stress enough how expensive marketing can become if you cannot retain your existing customers. It is far more cost effective to learn how to keep your customers than to educate a brand new audience and get them through the door.
It's important to continue to cultivate and foster these relationships with your current customers, and keep them happy.
What do you do to keep your customers happy?
What motivates them to return to your business?
Part III
Business Clarity
Chapter 10
Habits of Effective Leaders
“You were born to win, but to be a winner, you must plan to win, prepare to win,
and expect to win.”
— Zig Ziglar
Highly effective leaders understand that success is a process. To cultivate our success, we must develop habits that support our overall well-being and reputation.
For some, it may take years to find a routine that fits well into your lifestyle. Throughout my years of consulting business owners, I've seen a commonality between leaders and their personal routines, such as making health a priority, daily reading, selecting what outfits you will wear for the week, or planning your next day the night before. While keeping a simple and realistic daily routine is good, let’s think a bit more big picture about the five habits effective leaders embrace:
Be proactive (not reactive): A proactive leader doesn't wait for someone else’s permission to succeed. An effective leader has the habit of living by the values they have created for themselves while keeping their sights set on their goals. By being proactive, you don’t allow your emotions to control your actions or decisions. You don’t shift blame for uncomfortable circumstances or conditions. You own the fact that this is your life, and it’s up to you to make your dreams become a reality. By being proactive, you choose to actively participate instead of just observe. You stay consistent and focus on what you can control. You may also want to also surround yourself with other motivated individuals.
True confession: For myself and my leadership style, it has taken significant effort and years for me to embrace and implement the “get after it” mindset. I have always been one to watch from the sidelines. In the beginning stages of building Sweet D Marketing, I always waited and made the best possible, informed, calculated decisions and would only jump on an opportunity when it looked safe. I never wanted to look stupid in front of my peers or, God forbid, make yet another mistake.
However, I soon realized that I was on a merry-go-round to nowhere. Same thing day in and day out with limited growth. I saw the risks my peers were making and how they were picking themselves up off the ground when they got flattened by critics or nay-sayers. I admired their risk-taking, rise-and-grind, hustle-all-day attitudes, and I wanted a part of it. I’m not saying you should jump off a cliff without peeking over the edge first. You want to be sure your support system is in place with people who can advise you properly when making proactive choices, but you need to take action if you want to succeed.
When making important decisions or planning my next business strategy, I often have to let people know I’m not asking for their opinion. In turn, I do my best to ask others if they would like my opinion before just offering it. Far too often, I’ve found other business owners get stuck in the opinions of others. Does this sound familiar?
Embrace uncertainty (not security): Effective leaders have the habit of pushing outside their comfort zones. Sometimes, we have to force ourselves to do this. It may seem simple, but for many, it is not easy. Effective leaders continue taking necessary risks and look forward to challenges. In order to gain large rewards, at times, we must take large risks. An effective leader will understand that being uncomfortable and feeling anxious at times are all parts of the journey to great success. You can embrace uncertainty by staying flexible. Be open to change and adapt when necessary. Understand that, as much as you may want to, you can’t control everything. Most importantly, you will want to take action when you see the opportunity to make healthy changes.
My clients, especially those who have been in business for over ten years, all love the feeling of their, as I like to call, “comfort bubble.” A comfort bubble is when a business owner essentially gives up on going after new customers. The “it is what it is” mindset sets in, and the slow decline to retirement or closing up shop sets in. I’m always encouraging my clients to shake things up a bit. Make things uncomfortable, try new things, and take risks you’ve always dreamed about. Why? Because why not. The phrase “if it ain’t broke, don’t fix it” is the lazy business owner’s way of saying they have given up on innovating and growing. Don’t be a lazy business owner!
Surround yourself with success: Find those people who are, quite frankly, smarter than you. The most successful people in the world continue to seek mentors to model. They continue to learn from experts and ask for advice. The best leaders are humble and don’t pretend they know something when they don’t. They constantly ask questions and keep an open mind to new opportunities. Once we think we’re the best, the opportunity for growth slams the door in our face. Stay open to new understandings and possibilities. Never let arrogance get in the way of progress.
I am not about to pretend I have all the answers. I have so much more to learn about this i
ndustry, and I'm humbled by all the other great leaders and business owners who care enough to share their tips and experiences with me so I may continue on my journey to be the best leader I can be, right alongside all of you. I have to remind myself every day to seek more information and to connect with those who are smarter than I am. It’s not to say I’m not intelligent, but there is always more to learn. Every day, I'm excited for the opportunity to put something new on my tool belt, and I encourage you to do the same.
Begin with the end in mind: For many of us, we work hard to support ourselves and our loved ones. Perhaps you have life insurance. You’ve planned for retirement and have worked hard to save any extra cash possible. You’ve done exactly what society has deemed important and valuable. For the first half of our lives, we work and grind away. But are you holding on to those relationships that matter most to you? It’s morbid, but for a moment, think about when you are going to be on your deathbed. Will you be happy with who’s around you? Now think about your funeral: who’s in attendance, or even more telling, who’s not? The habits you take on today will not only affect tomorrow, but all add up to your final breath on earth.
When you make decisions and develop habits, whether you believe them to be big or small, healthy or unhealthy, be thinking ahead and ask yourself, “Will this decision or habit serve me in the long run?”
Empowered Page 9