The economics of customer retention is mainly based on generating synergies between an organization and its consumers. The strategy enables a business to make better decisions by increasing user alignment with its products and services.
According to the marketing guru, Philips Kotler, businesses on an average lose approximately 20% of customers on an annual basis by failing to retain its existing users. This, in turn, costs them staggering sales and revenues.
Let’s dig a little deeper to understand how an outbound call center is leveraging this approach to cement its client’s relationship with the valued customers:
Most of the business processes outsourcing units are tactically using the customer retention marketing approach to gain insights into the user purchasing behavior. A successful retention strategy commences with developing primary contact with the existing consumers and continues throughout the lifetime of a brand.
While an inbound call center focuses on developing multiple strategies to reach prospects, an outbound contact center unit taps existing customers to cement long-term relations. The core idea behind reducing user defections is the conviction that a one-time consumer is not sufficient to fuel the continual growth of an organization. According to research conducted by the Gartner Group, a nearly 5% increase in consumer retention can surge business profits between 25% and 125%.
To actively engage customers across a wide array of channels, contact centers adopt the following strategies:
Exceptional Customer Service: By moving a client’s product/service into the realm of unparalleled support to each and every user, a third-party service provide ensures repeated sales. The key facets of this aspect include immediate customer response, zero defects, as well as consistent and on-time delivery.
Promoting Loyalty with Special Offers/Programs: This is considered as one of the important instruments for winning valued customers. Some of the common loyalty programs used by a service provider for retaining customers are:
1. Awarding monetary/non-monetary loyalty points
2. Offering loyalty credits proportional to the amount spent
3. Selling gift cards to valued and esteemed customers
4. Loyalty punches for purchasing specific items in the store
Frequent Communications: Another important facet of creating better synergies with customers is using a rolling calendar to regularly keep in touch with them. This includes a programmed sequence of phone calls, letters, special offers, emails, cards or personal notes, and frequent follow-ups.
To conclude, the benefits of consumer retention have been observed to compound over time by incessantly multiplying users. This results in the long-term profitability and growth of an organization.