New Concepts & Tactics That Work In Customer Retention!
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- Amberlynn Barrett
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1 Customer Retention Tactics For Carpet Cleaners! New Concepts & Tactics That Work In Customer Retention! Customer Retention has more impact on your profits than market share, or almost anything else you can do to provide a competitive advantage to your business. In fact, it has been found that companies, which reduced customer loss by just 5%, could boost profits anywhere from 25 to 85%!
2 Sample Calculations To Stimulate Your Thinking...
3 Customer Retention Tactics For Carpet Cleaners! MEASUREMENTS
4 Customer Retention Tactics For Carpet Cleaners! RESULTS
5 Customer Retention Tactics For Carpet Cleaners! RESULTS 1 YEAR RESULTS 10 YEARS
6 Here Is A 7 Year Pattern Of A Business In A Death Spiral MAIN CALCULATOR PAGE
7 Argue If You Wish, This Absolutely Is Not Unusual! Average Retention Of 57% With -0%- Growth!
8 Believe it! This is An All Too Common Rut! Base Calculations 5 year growth level is -0-5% Of Any Other Factor Makes Only An Insignificant Difference With The Exception Of Customer Retention!
9 Let s Move It Up Just 5% & See What You Can Expect! + 5 %! Average Retention Increases To 62%
10 A Consistent Retention Of 5% More Of Customers Can Do This! Retain Only 5% More Of Your Customer Base & Look What Happens In 5 Years Vs Status Quo "What If" Calculations 8.6% 18.20% 28.20% 39.20% 51.20% More Customers Same Purchase Level = 51% More Income in 5 yrs!
11 Check these charts for interesting facts! Before 5% Retention Increase Static Customer Base & Sales Costs Rise = Recipe For Failure! Good Lifetime Value, Simply Not Enough customers! Comparison Charts
12 Now the question is: How can you do it? 5% Retention Increase Equals 51% Increase In Income! 400 More Customers No Increase In Individual Value - Referrals Are Key Comparison Charts
13 Today s Discussion Objectives Pre-Break Why the Focus on Customer Retention Now? Why Customer Lifetime Value Is Important Successful Tactics For Improved Retention Discuss Defection Management. Post-Break Unique Customized Spotter Program With a Twist!
14 Understand Master Become Aware Gain an Understanding Why the focus on customer retention has become so increasingly important now? To Master The use of the most successful tactics for keeping existing customers Develop An Awareness Of Unique, emerging & successful customer keeping programs such as the new Customized Spotter Program With a Twist!
15 Why the Focus on Customer Retention? Markets Appear Stagnant Indefinitely Why? decrease in population growth GNP growth increasing at a decreasing rate Increase in Competition For Expendable $$$ Paying down credit card debt reduces expendable income Increased savings reduces expendable income
16 Why the Focus on Customer Retention? Rising Costs Of Marketing Increase in the cost of advertising Loss of share of voice per $ you spend Your Customers Have Changed More informed internet & all digital media Increasingly skeptical also because of digital communication access
17 Why Do Customers Leave? Customers leave service organizations because of service reasons about 2/3 of the times. Core service problems Service encounter failures Inconvenience Response to failed service Competition, Pricing, Ethical concerns or Involuntary switching/other factors
18 #1 - Key To Customer Retention Satisfaction! Satisfied Customers Stay loyal longer Talk favorably about your company Pay less attention to the competition Are less price sensitive Offer service ideas to you Cost less to serve than new customers
19 When Does Customer Retention Start? Your Customer Retention Efforts Must Begin As Soon As You Win A New Customer These Efforts Must Include Learning as much as possible about customer wants (desires) Responding promptly to any indications of concern (problems) Making customers feel truly cared for-(twisted Spotter Program) Resolving all complaints quickly and efficiently
20 Criteria for Selecting Customer Retention Tactics Efficiency - Low Cost Tactics Effectiveness Evaluate Likelihood To Succeed Adaptability - Strategic Fit With Your Company Culture Consistency Must Work Well With Your Current Marketing Plan Use Competitive Advantage When Possible Consider Ease Of Getting Started & Keeping It Going Projected Profitability
21 The Benefits of Customer Retention Profits Are Derived From Sales Reducing defections by 5% can boost profits 25% to 85% depending on the industry Profits From Reduced Operational Costs It is 3 to 5 times cheaper to keep a customer than to recruit a new one Profits From Referrals Positive word-of-mouth advertising generated by satisfied customers brings referrals
22 Building Trust By Protecting confidential customer information Refraining from making disparaging remarks about other customers and competitors Telling the customer the truth, even when it hurts your sales potential Providing the customer with full information the pros and the cons Being dependable, courteous, and considerate with customers Become actively involved in community affairs
23 Emerging Customer Retention Tactics Frequency Marketing Primary goal is to encourage existing customers to purchase more often from you Relationship Marketing Marketing technique based on developing long-term relationships with customers After-Marketing Tactic Emphasizes the importance of marketing efforts after the initial sale has been made
24 Types of Guarantees Implicit Guarantees An unwritten, unspoken guarantee that establishes an understanding between the firm and its customer Specific Result Guarantees Guarantees that apply only to specific steps or outputs in the service delivery process Unconditional Guarantee A guarantee that promises complete customer satisfaction
25 Benefits of Unconditional Guarantees Benefits to Customer: Your customers perceive a better value Customers perceived risk is lower Your firm is perceived as more reliable Helps consumers decide among alternatives Helps to overcome consumers resistance Helps to overcome negative word-of-mouth
26 Benefits of Unconditional Guarantees Benefits To You: Forces you to focus on the customer s definition of good service The guarantee states a goal that is communicated to employees and customers Forces you to examine your entire service delivery system for failure points Serves a source of pride and motivation for brand & team building for you & employees
27 Defection Management Businesses commonly lose 15% to 20% of their customers each year Types of defectors Price defectors (will always go for price) Product defectors (lack of clarity on your part) Service defectors (expectations weren t met) Market defectors (surfaces you can t service yet)
28 Summary of New Concepts & Tactics in Customer Retention! Key Objectives Covered: Establish your own criteria -- no cookie cutter format No one size fits all Reviewed Valuable Marketing Tactics Steps to improve customer retention in your business Critical information regarding guarantees Power of building trust & steps to take Use of frequency, relationship & after-marketing And using personalized spotter program with a twist
29 Customer Retention Tactics For Carpet Cleaners! BREAK! NEXT --- Unique Customized Spotter Program With a Twist!
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