How to Retain Customers with Product Services
So many companies only focus on signing new customers. They offer special rates and sign-up discounts or spend thousands on marketing. However, the real profit comes from customer retention. Why pay more money to focus on new clients when you already have a customer base. Useful tools like product services and simply building brand loyalty go a long way to retain customers.
Let’s look at it this way. Is it easier to ask a friend out to lunch or grab someone off the street? Obviously, you have a better chance of bringing your friend. Customers are no different. You have a much better chance of making a sale to someone you already know than qualifying a new lead.
Think of the work going into new clients. You have to market the product, generate leads, move through a sales funnel, and negotiate the sale. Each step costs time and money. Retaining current clients costs much less, and the more effort you put into retention, the more likely you are to gain referral business.
Fortunately, there are several ways to focus on customer retention without sacrificing your efforts to sign new customers.
First and foremost, sell an excellent product. A good salesperson can sell almost anything, but customers jump to another company with a better offering if the product is sub-par. Selling a premier product builds trust with your brand. Loyalty is incredibly powerful for businesses. It’s what keeps customers with you even if there’s a cheaper option.
Part of building loyalty is creating a relationship with your customers. Coupons and occasional discounts go a long way to remind your client base you care about their business. Newsletters and updates let them know what you’re up to and what they can expect in the future.
Newsletters and coupons can only go so far. No matter how good your relationship is with your customers, they have to be happy with the product.
Product services, or product service system, is a way to reshape a product and turn it into a service. Here’s an example: in the past, you could rent a movie and have to return it two days later. You paid a fee for those two days, and then you were done with the rental store. Along comes Netflix. Like with the rental store, Netflix retained ownership of the “product” but offered unlimited rentals for a monthly service fee. Sorry, Blockbuster.
Let’s try another one. Spotify knows that selling a CD is a one-time purchase, and the seller loses ownership of the CD. Instead, Spotify provides access to the same CD any time a user wants to listen to it for one monthly fee of roughly the same price. However, users get access to that CD and millions of other songs. Which is better, 12 CDs per year or unlimited music all the time for the same price? Sorry, SamGoody.
The core idea of a product service is to retain ownership of the product while still providing the same outcome. You can mimic the same strategy. For example, you can create a database of online courses and sell a subscription allowing users to take as many as they want. Now, rather than buying the one-time class (product), customers can have unlimited access to all of your classes (service), and they’re more likely to stay with you. Turning an end product into an ongoing service can be a vital stepping stone to a successful company.
Customer service is how your clients stay happy. Provide excellent service, and your clientele will remain content and loyal. Think of all the times you’ve been frustrated with a product, so you call or email the business for help, and no one answers. Poor service is one of the top reasons customers leave. Hopefully, your customers aren’t calling in too often to complain, but if they do, have an effective system in place to handle issues.
Customer service is more than just reacting to issues, however. Businesses who can be proactive with their customers tend to build more loyalty and create more long-lasting relationships. Rather than waiting on a problem to come up, companies can reach out and offer new products and services at an intimate level.
Excellent service starts with taking the time to put a plan in place and find the right people to work with your customers. Strategies on proactive customer service include things like personal phone calls or weekly newsletters. Luckily, you can automate these strategies, so you get to set up shop and go back to progressing your business.
Relationship Equals Retention
From building loyalty to providing customer service to utilizing technical tools, retention requires hard work. Retention strategies come in many different shapes, and each business needs a different plan. You know your business better than anyone, so figure out how best to build your relationships. Do your customers expect a friendly, personal phone call? Does your enterprise rely on online communication to touch as many customers as possible? What strategy makes the most financial sense for you (keep labor costs in mind!)?
There is no single right answer, but you can get some help. A significant part of utilizing a business and marketing suite is creating a strategy to generate contact lists and reach your current customers. Their professional expertise helps map out strategies that work in your industry, and as a team, they can build your solution for you.
Building relationships with your customers is crucial to your company’s success, but it doesn’t have to be a full-time job. Understand the strategies and tools in front of you, so you can become more productive without sacrificing your need to generate new customers.
Hang on to your customers.
Product services and brand loyalty are incredibly effective ways to retain customers, but you need to take the care and effort to make them quality aspects of your business. Anyone can make a sale, but it doesn’t mean anything if you can’t get repeat customers.
Your website can handle everything for you. Staying in touch with customers is vital, but email marketing services on your site can help by sending coupons or newsletters. Automated appointment features let your customers pick times to meet, so you never have scheduling conflicts. build a database of online courses establishing your expertise in the market and creating a new subscription-based product.
Shamrck lets you do it all in one place. It’s a complete website and business management suite to give you everything you need to retain customers, create new products, and work new leads. Maintaining a successful business goes well beyond making sales. You need to keep current customers, but you don’t have to do it alone. Use Shamrck to help make your company succeed.
Sheffie Robinson, founder and CEO of Shamrck Software, has been announced the winner of Databird Business Journal’s 2020 Women in Business Rising Star award for female entrepreneurs under 40. Sheffie beat out female entrepreneurs from across the country for the...
Shamrck Software has been selected for the United for America Luminary Fellowship dedicated to working with female owned enterprises. United for America, a movement led by Unilever joined with Luminary to provide resources to emerging small businesses. Luminary works...
Shamrck Software has been named a recipient of the Black-Owned Small Business Impact Fund. The fund is a combined effort from the NAACP and Beyoncé‘s charitable organization, BeyGOOD. As an emerging business growing during the Covid-19 pandemic, Shamrck Software was ...