Customer Retention Strategy from Experienced Marketers
The client is the basis of the business and this is an axiom, and in order to keep it, you need a customer retention strategy. You cannot build a business without a client, because it is the client who brings money to the business. Everyone knows about this, as well as the fact that the guys are very fastidious customers. Picky they are not out of the blue, but have every right to be. Customers pay money and have the right to choose what to pay for and what not to. This forces the business to be in constant tension, 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, we need a customer retention strategy that will allow us to purposefully, systematically, constantly, and most importantly, unobtrusively retain them. In order to build the most effective strategy, the client must be kept at the level of his idea, because at the core of the client is a person, and the basis of a person is his idea. You could even say that a customer retention strategy is a strategy for pointing out new life paths that are beneficial to the client.
How can this be achieved? This can only be achieved if you 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 will gladly accept a good new idea, because he intuitively feels that the new idea will make his personal idea more advanced, and therefore more competitive, as well as the client himself.
In theory, everything is fine, but in practice everything is not always so good, because the inertia of thinking hinders the implementation of all this. The eyes see the material component of the client, but they do not see the ideal. As a result, the habitual way of thinking depicts the client as something static, as something that has always been, is and will be in the same state. In reality, this is not at all the case. The client is a living person, based on his idea. This idea is constantly changing, and behind it the person himself is changing.
The one who first offers the client an idea that develops him will eventually get the client, but only as long as he does not have a need for a new idea. Accordingly, the customer retention strategy should be long-term, because customer retention is an endless process, it never ends. Whoever finishes it first, as a rule, leaves the market first.
For this reason, in developed countries, a large amount of money is invested in customer interaction systems. They know very well the price of customers, as well as the cost of losing customers. They know very well that it is much cheaper to manage than to create new customers. The ratio between the cost of creating and the cost of retaining customers is on average 10/1. This means that it costs 10 times more to create a new one than to retain an existing customer.
Customer retention strategy is profitable
Retaining customers is profitable. On the one hand, it is 10 times cheaper than creating new ones, and on the other hand, for the amount you need to spend on creating one client, you can keep a dozen clients. This means that if you manage clients, and not create them to replace those who left, you can free up money for something else. If you know how to retain customers, then you will not need to look for new customers.
For example, money can be used to purchase new equipment or to finance a personnel 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 an algorithm, it will not work to keep the client, and he will eventually go where he needs to.
Accordingly, in our case, the customer retention strategy is the awareness of customers’ motivation to remain ours and not go to a competitor. There is no doubt that without retention they will go to a competitor, because there are enough examples. There are hundreds of thousands of these examples around the world. Every year, hundreds of thousands of businesses cease to exist because they do not have enough customers. Lack of customers is the most significant reason for closing a business.
The customer retention algorithm is quite simple. Since the client is basically an idea, then, first of all, it is necessary to highlight his idea. Accordingly, the customer retention strategy begins with the selection of their idea – this is the first stage of the algorithm. If there are few clients, then you need to highlight the idea of each of them. If there are many customers, then it is enough to segment them and highlight the idea of a customer segment.
This is done in the same way as market segmentation, because the totality of customers is actually the market. In noomarketing, a special tool is used to highlight the idea of customers. It is currently undergoing testing and very soon there will be its official announcement on this site. In principle, the idea of a client at the subconscious level is known to every person.
How to keep customers the right way
Each person feels very well any other person. But the problem is that these sensations are subconscious. You feel something, but you don’t know what to do with it, and there is no certainty that you feel it right.
If the client’s idea is isolated and transformed into the form in which consciousness perceives it, then it will become clear what the client wants and what he may want in the future. The selection of an idea is, so to speak, the transformation of subconscious sensations into specific information that you can work with.
Identification of the idea is done in order to know what new idea can be offered to the client. The fact is that not every idea will be accepted by the client with a bang, but only the one that corresponds to his personal idea. So highlighting a customer’s idea is the most important step in the customer retention algorithm. If it is not highlighted or highlighted incorrectly, then you can not continue further, because the probability that the client will be offered exactly the idea he needs in a completely random way tends to zero.
Accordingly, tend to zero and the probability that the client will remain yours
Accordingly, tend to zero and the likelihood that the client will remain yours. If the idea is highlighted correctly, you can proceed to the second stage. The second stage is the generation of new ideas that match the idea of the client. You need to generate as many ideas as possible, because if this allows you to offer the client not one, but several ideas. If he likes not one idea, but several, then this will be a good guarantee that the client will not leave.
The client will not leave because in the process of how ideas will be presented to him, they will be introduced into him and will begin to motivate him for his development. The presentation of new ideas is the third stage of the algorithm. The client is unlikely to be able to refuse to develop the ideas embedded in him, he himself will be interested in bringing them to life, but since you have implemented them in him, it means for him that you know how to implement the implemented ideas, which will delay client you have.
We have smoothly moved to the fourth stage of the customer retention algorithm. The fourth stage of the algorithm is the creation or search in finished form of something that can embody the ideas we have implemented in the client. We are talking about the goods or services that correspond to the idea. It is through them that the idea is realized.
It is very important that goods or services correspond as much as possible to the ideas that are embedded in the client, if this is not the case, the customer retention strategy will not be effective, the scheme will not work and the client will go to look for what he needs from others, what corresponds to the implemented ideas into it. In fact, this will mean creating a client for a competitor. When a product or service is found, it remains to competently offer it to the client, and this is the fifth stage of the client retention algorithm.
The customer retention strategy ends with this fifth step. But we must keep in mind that this is a short algorithm that allows you to understand only the general scheme. The final algorithm will be broader due to the detail. Detailing is the breakdown of stages into smaller components. Detailing is carried out for each specific company, because all companies have their own characteristics. To do this detail correctly, you need to have certain knowledge.
In order to gain this knowledge, you need to read articles on marketing. The more articles you read, the more detailed the algorithm will be built. At the same time, it must be remembered that the most detailed algorithm is the most effective algorithm that will stop the maximum number of customers from leaving for competitors. If you have any questions, you can get marketing advice and answers to them.