Loyalty and customer retention are buzzwords trending right now but behind these lie complex strategies that only a third party professional can deliver. Statistics show that it is always more expensive to acquire new customers than it is to manage and maintain a loyal customer base. A high rate of customer churn can lead to a negative brand image for a company. On the other hand, higher customer loyalty has a positive influence. Loyal customers are more likely to speak out on social media platforms and their positive comments are likely to draw in more new customers. It is no surprise that enterprises today are paying more attention to customer loyalty and customer retention than before. Companies have the choice of implementing customer retention on their own or hire third party loyalty experts to manage the entire service on an outsourced basis. This has various advantages.
- Why doing it on your own is not a good idea
An enterprise that assumes it can handle customer retention management is faced with several issues that may be beyond its capabilities.
- Research and analysis of existing customers, potential customers and their behaviors.
- Draw up a set of strategies that it can implement.
- Allocate manpower and resources for the task. This means existing employees would have to leave important tasks and it could affect productivity.
- Further, employees may not be conversant with customer retention management and may not be able to craft a strategy or even implement it.
- The company does not have access to sophisticated AI based technologies.
- The outcome will be less than satisfactory.
Outsourcing customer retention management to experts in loyalty programs is the best bet. They can do it far better and assure success.
- Your workflow and employee performance is not affected
Customer retention is an extended activity that needs plenty of manpower resources and specialized knowledge. Only experienced professionals with past experience can take on the task. Your staff would not succeed and their work would be impeded. Workflow is affected with no guarantee of success. Leaving it to a third party is better.
- Time and money savings
Companies may not have the expertise to carry out research or to craft strategies or analytics or implementation. If they do it on their own they spend more time and more money and get less. It requires expertise to craft a program and implement it to achieve desired goals and third party retention experts deliver results.
You could, for instance, craft a rewards and points program and end up spending too much. Leave it to third party experts and they will find the right balance that keeps customers happy and one that has minimum impact on your profitability.
- Employees may not be motivated enough
Employees may not be motivated enough to analyze, find out customer expectations and craft a suitable strategy. The strategy may not be implemented with sufficient motivation. Third party professionals excel in all these areas and deliver results.
- What third party customer retention management company does for your company
- Customer retention management companies first of all analyze your company, its products, deficiencies in services and customer expectations.
- They craft a strategy to address shortcomings and design others that will keep customers engaged and increase engagement rates.
- They design and implement a program to cement relationships with customers across all channels, gauge their spending and provide opportunities for more purchases.
- The customer retention expert crafts a personalized reward program that resonates with each customer.
- The company’s service and support areas are improved.
- Potential customers receive education about how happy existing ones are
- Introduce program for informing about new product launches, deals and offers
- Improve communications, build relationships and build trust.
- Introduce programs to cross-sell, upsell and buy again that will generate more revenues for your company.
- Keep in touch with customers, get their feedbacks and keep tabs on social media as well as other channels to derive insights.
- Work to improve branding and company image
- Work to improve profitability
- Carry out analytics on an ongoing basis even as they reach out to customers with personalized messages, using the power of AI and database analytics.
A team is involved in these activities. They work independently but keep management of the company informed and make recommendations that need to be implemented to bring about desired results.
Professionals have the expertise to design the best strategy, analyze competition, understand customers and their expectations to come up with implementation that gets results.
A customer retention program may not work in isolation. It needs to be tied to CRM and other programs. Qualified experts can do it better than your in-house staff can do it.
- It has to be ongoing
Customer retention is not a one-off activity. It has to be implemented, followed, monitored and modified as it progresses. Entering into a long term contract for customer retention management is the best policy. Your employees’ work is not affected. Your customer base increases as they stay loyal and rope in more customers. Programs that have delivered success may need to be modified on an ongoing basis since customer expectations keep changing. Your third party management expert can keep evolving customer retention policies for better outcomes.
Hiring specialists will give you the benefit of their insightful reporting that you can use to make improvements to products and services.
Customer retention is an involved activity requiring quite a bit of expertise in various fields. You may find that hiring experts for each task can prove to be more expensive with no guarantee of outcomes. Third party services charge less, stay by your side and assure results. Your revenues increase and what you pay to them actually comes out of increased earnings.