Using churn to improve the customer experience
Inattention to the customer relationship takes many forms but it impacts companies in the same way: poor public image and reduced revenue, according to Graziano Associates, which argues that marketers can use a straight-forward Client Relationship Mastery formula to improve the customer experience and customer retention.
According to Denise Graziano, founder of Graziano Associates, business owners, department heads and C-Level executives have a duty to create a customer experience and atmosphere that clients do not want to leave for any reason. When customers view a vendor as an ally, partner and problem solver, they will be more inclined to stay regardless of price or other incentives.
So why are some companies choosing to accept churn rates as a fact of business when they should be using this information as a guide to keep customers? According to a 2013 study by Accenture, 81% of customers that switched to different providers say companies could have done something to prevent them from switching. And 72% of those people said that if their issue was resolved in the first contact, it would have influenced them positively. US customers also have a 51% greater expectation of special treatment for being a good customer.
"Companies must do more to keep their customers happy for their future success. For example, corporations should take advantage of all the digital tools available to connect with their clients, gauge their satisfaction, and resolve issues quickly," said Graziano.
There are resources for sales, customer service and client retention training. These solutions will help create business practices to reduce churn rates. But Graziano created the Client Relationship Mastery client retention formula as a guide to help clients retain their own valued customers.
Whether B2B or B2C, the business landscape is more competitive than ever. Clients do not owe anyone their loyalty; businesses must continually earn it.
"When someone decides to stay with a vendor or partner, it is usually when a) they feel understood, b) when their problems are solved, and c) their goals and challenges are anticipated on an ongoing basis. This is the behavior of an ally, not a salesperson," concluded Graziano.