1
5
6
7
8
On average, U.S.
corporations lose
of their customers
every 5 years. ~ Reicheld
9
An average company has a defection
rate of 10%-30% per year.
10
Raising your customer retention rate by
5% can increase the lifetime value of
average customer by 25% -100%.
11
12
On average, U.S.
corporations lose
of their customers
every 5 years. ~ Reicheld
Customer loyalty is a customer’s commitment or attachment to a brand, store, manufacturer,
service provider, or other entity.
13
Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
14
Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
b. Occasional switcher: AABAACAABB
15
Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
b. Occasional switcher: AABAACAABB
c. Switched loyalty: AAAAABBBBB
16
Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
b. Occasional switcher: AABAACAABB
c. Switched loyalty: AAAAABBBBB
d. Divided loyalty: AAABBBAABB
17
Customer loyalty is measured by proportion of
purchase
a. Undivided loyalty: AAAAAAAAAA
b. Occasional switcher: AABAACAABB
c. Switched loyalty: AAAAABBBBB
d. Divided loyalty: AAABBBAABB
e. Indifferent: ABCDADCBAC
18
On average, U.S.
corporations lose
of their customers
every 5 years. ~ Reicheld
Customer loyalty includes:
a. A behavior regarding the product
19
On average, U.S.
corporations lose
of their customers
every 5 years. ~ Reicheld
Customer loyalty includes:
a. A behavior regarding the product
b. An attitude towards the brand/company.
20
Challenge with behavior as a loyalty criteria is a
customer may repeat purchases because:
a. Convenience, price, availability, or inertia
due to habit.
21
Challenge with behavior as a loyalty criteria is a
customer may repeat purchases because:
a. Convenience, price, availability, or inertia
due to habit.
b. Purchases made w/out motive for choice
22
Attitude towards a brand is favorable that
reflects preference & commitment
expressed over time.
Includes emotional attachment
& positive evaluation
23
On average, U.S.
corporations lose
of their customers
every 5 years. ~ Reicheld
Behavior factors include:
a. Choice
b. History with company
24
On average, U.S.
corporations lose
of their customers
every 5 years. ~ Reicheld
Attitudinal factors include:
a. Satisfaction
b. Emotional Bonding
c. Trust
d. Risk reduction
25
On average, U.S.
corporations lose
of their customers
every 5 years. ~ Reicheld
Customer satisfaction: A post-purchase
evaluation that results from a comparison
between pre-purchase expectation and
actual performance
26
On average, U.S.
corporations lose Xerox found that a satisfaction rate of a 4 out of
5 were more likely to switch to competitor than
those that rated 5.
27
Emotional Bonding:
a. Brand affect, brand equity
b. Company attachment
28
Emotional Bonding:
a. Brand affect, brand equity
b. Company attachment
c. Feelings of closeness,
affection trust & respect
d. Technology limits emotional
bonds.
29
Willingness of customer to rely
on organization
30
Reduces uncertainty and risk
31
Honest, fair and unreasonable.
32
Customer
Retention
Strategies
33
1. Create A Culture
Of Buzz!
34
If the marketplace isn't talking about you,
there's a reason. The reason is that you're
boring. And you're probably boring on
purpose. You have boring pricing because it's
safer...You have boring products because
that's what the market wants.
~ Seth Godin
35
2. Consistency
builds trust!
36
Customer retention is a long-term game, not a
drive-by event.
37
Repetition, consistency & authenticity build
trust and are the foundational tools of
customer retention.
38
3. Trust most
important factor to
offer!
39
Lack of trust is the single
greatest reason you can’t
keep customers.
40
Trust is earned by keeping
promises.
Trust is lost by overpromising
& under delivering.
41
When you’ve earned trust, you
can make mistakes, own up to
them and correct them
without loss!
42
4. Staff as customer!
43
Your employees treat your
customers the same way you
treat the employees!
44
Must retain your best
employees so you can retain
your best customers.
45
5. Create an open
dashboard.
46
One-page, high-level view of
key strategic, marketing and
financial indicators.
47
Transparency with employees
key to company success and
vision as well as customer
retention.
48
6. Golden Rule Of
Customer Retention:
Give To Get
Mentality.
49
Those who usually give…get!
50
Approach customer relationships by asking,
"What am I here to give?" or
"How can I serve?“
Not, “What can I sell you.
51
Develop a strategic partner relationship with
a view toward adding value
52
7. Turn your attention
to educating not
selling.
53
Successful customer retention
provides valuable content &
education that shows how
brand understands customer
needs.
54
Content marketing strategy is
critical here…providing useful
and helpful content of value.
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