4 Common Customer Retention Mistakes
Even the best-run contracting businesses can fall into one or more of these 4 customer retention pitfalls. Learn how to steer clear of these costly mistakes and instead build a strong connection with every customer.
Avoid these 4 Common Customer Retention Mistakes
There are four common customer retention practices that cause companies to miss out on building a relationship with their customers.
1. Only following up with high-dollar customers
Some companies limit their potential of repeat and referral business by focusing follow up or showing appreciation only on customers who make a large purchase or sign up for top-tier service. This decision may be part of an effort to save money or time. But you have one chance to exceed customer expectations and make a lasting impression. Your current customer (no matter how much they spend) is your best investment in your future. And besides, most companies follow the 80/20 rule. Only 20% of their customers are high-dollar, top-tier ones. So be sure to reach out to the 80% who spend at a lower level but have just as much marketplace influence. Make sure each and every customer feels engaged and connected enough to send new business your way.
2. Surveying a random sample of customers
Many systems for customer surveys are designed to target only a random sample. Asking for feedback in a survey sends the message that you care about your customers’ opinions and want to improve in ways that can benefit them. Surveying every single customer can offer a more thorough picture of your strengths and opportunities for improvement. It also creates a company culture of care and accountability when each team member knows that every customer is surveyed. And if you have better real-time business intelligence than your competitors, you’ll gain a significant advantage in your market. Customer feedback also yields great testimonials and reviews that can be used in your marketing efforts.
3. Using service technicians to solicit customer feedback
4. Not every good technician is comfortable asking for a survey from the customer. Set your team members up for success in letting them do what you hired them for.
4. Responding to the volatile customer, but ignoring the neutral customer
Don’t make the mistake of overlooking customers who feel neutral about your service. They like you enough to remain a paying customer for now, but they could easily be swayed to a competitor if given the right opportunity. Remember, “neutral” is just another word for “at-risk”, “unengaged”, or “apathetic”. When you engage with every single customer and offer them an opportunity to provide feedback, you can move a neutral customer to the fan zone.
If you identify with any of these mistakes, consider how you can make changes in your process. Try some of these tips to build relationships with all of your customers.
Tips for Building an Emotional Connection with Every Customer
After the job is completed, it’s all about excellent customer follow-up. Show your customers you want more than just a one-time transaction. That you want an ongoing relationship. Remember the goal isn’t just to leave customers feeling satisfied with your service, but to build a strong emotional connection.
• Go beyond automated postcards or simple trinkets
When it comes to customer follow-up and touchpoints, the goal shouldn’t just be to stay top of mind. It should be to create warm and memorable customer connections. You do that, and the top of mind part will take care of itself. Have you ever thought about doing something for your customer after the job that would really differentiate your shop? Something beyond automated postcards that feel just that: automated. Or salesy trinkets (think pens or koozies) that can feel cheap or impersonal.
So how about something more unique? Something more relational. Something that speaks of a genuine human connection between you and your customer.
How about…food. Yup, that’s right. Food. Sending a treat of food that feels homemade goes much further to create a relationship-building moment with your customer.
Food is incredibly personal and relational, and is a powerful driver of customer loyalty. It’s also multi-sensory, engaging 4 of your customer’s 5 senses. There is no other customer touchpoint that can do that. Food is also a basic human need. Not just physically, but socially and emotionally as well. And food is central to our human interactions. Think about birthdays, weddings, graduations, anniversaries, career achievements, and the like. All of our major life milestones include 2 things: other people, and food.
That’s why we believe a Thank You package of food is the most impactful and memorable touchpoint a contractor can make with their customers. And To Your Success food packages include something everyone loves and can relate to: freshly baked cookies.
• Surprise your customers
Gifts are especially meaningful when they are a complete surprise. In fact, positive surprises activate the brain’s pleasure center and reward system. This helps release your customer’s feel-good chemicals and reinforces the behavior that brought the reward in the first place–doing business with you. So combine food + a surprise, and you have a winning combination. But even if you don’t mail food, think about other positive surprises you can provide such as an invoice reduction; a free thermostat upgrade; a free, 3-month supply of air filters; a free upgrade to a USB outlet; treats for the dog.
• Connect quickly
While it may be tempting to send out gifts or surveys in a quarterly batch, it’s better to reach out to a customer within two weeks of a purchase or service visit. If a customer has a complaint or concern, reach out immediately. Today’s technology allows real-time monitoring and alerts of negative feedback in customer surveys.
Especially with rewards, send them in close proximity to the date of service. Your customers deserve it. Plus you’ll build some strong neuro pathways in your customers minds, and create some lasting relationship capital in their hearts.
Get More Expert Tips
Want more tips and customer-retention ideas? Download our guide, Creating a Companywide, Customer-Centric Culture. You’ll learn five steps that are vital to outperforming your competitors in the customer experience.