Customer Retention Tactics That Beat the Discount Reflex (Five Behaviors Before the Save Call)

Most customer retention tactics boil down to one move: a discount at the end of the contract. That move works once, teaches the customer to wait for the discount next time, and erodes margin every quarter. Retention is not won at the save call. It is won in the months before it, through five specific behaviors that cost nothing and compound.

The five: (1) monthly value-delivered conversation, not a check-in. (2) One surprise of value per quarter that the customer did not ask for. (3) Proactive naming of the customer’s doubt before they voice it. (4) Trade-concessions-for-information, not for the deal. (5) End every call with one dated commitment, yours not theirs. None of the five involve a discount.

Below is the mechanics of each tactic, why the discount reflex erodes long-term value, and how the Learn2 participant-driven account-management approach installs these as team defaults.

Most businesses today spend a lot of money on advertising because they want to attract new customers. However, it is important to remember that retaining your existing customers is a-lot less expensive than attracting new ones. There are several things that you can do to retain your customers. Below are some of the best customer retention tactics:

DELIVER TOP-NOTCH SERVICES

This is one of the most important customer retention tactics. If your customers are content with the service that you provide, then they will most likely return again. On the other hand, if customers are not pleased with the service that you provide, then they will probably take their business somewhere else. That is why you want to make sure that you try your best to meet all of your customer’s expectations.

RESOLVE COMPLAINTS QUICKLY

It is impossible to please everyone. You will most likely have to deal with several complaints during the time that you are in business. Again, an unsatisfied customer is likely to take his or her business elsewhere. However, if you resolve the complaint within a timely manner, then the person may come back to do business with you. Keep in mind that the vast majority of unsatisfied customers do not even bother complaining. Therefore, getting a complaint could be a good thing.

ENCOURAGE CUSTOMER FEEDBACK

Your customers need to know that their opinion really matters. That is why you should encourage them to give their feedback. You can have them fill out a suggestion card before they leave the building. You can also call them and ask them to complete a satisfaction survey. On a scale from one to 10, how would you rate your product or service? What do you like most about the product or service? Is there anything that you dislike? What can we do to improve our business? Those are just a few of the many questions that you should consider asking your customer.

START A CUSTOMER LOYALTY PROGRAM

Many businesses today have implemented a customer loyalty program. A customer loyalty program is where customers are rewarded for using a business frequently. Studies have shown that customer loyalty programs are extremely effective. You may want to consider starting a customer loyalty program. For example, you can start a program where customers are given a discount for shopping at your store a certain number of times.

FOLLOW-UP WITH YOUR CUSTOMERS

You should try to stay in touch with your customers. In addition to calling them or emailing them, you should also send them a newsletter.

HOW WE CAN HELP

If you need more help retaining your customers, then we can help. We offer customer retention training with a proven track record of increasing save rates of customers.