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Often in our businesses we get carried away with the desire to gain new customers. Competition is rife in all sectors, in some more than others, but we live in times of hypercompetition. Many don’t realize that acquiring a new customer could result more costly than retaining an existing customer.
“Increasing customer retention rates by 5% increases profits by 25% to 95%.”
Harvard Business Review
It is worth measuring customer loss, otherwise known as “churn rate” and developing pertinent strategies to reduce this rate with the objective of improving company competitiveness on a global level.
Right now you are probably thinking of customers you have lost over the last year and the reasons behind their departure. Perhaps you were unaware of this flight risk or if your company has improved customer retention. The important question is; does your company have a customer loyalty strategy in place?
The probability of the customer churn rate can depend on the company’s business sector or activity. It seems particularly high for telecommunication and internet companies, but all sectors should study customer satisfaction since a good analysis can extract criteria to assess the flight risk of each individual. The extracted data should be a starting point for detection and prevention strategies and should help to monitor long term progress.
We must listen to our customers! It is important to understand and group our public.
Databases are rarely used properly hence a good source of information is overlooked. If used correctly databases can help to personalize offers or increase customer engagement. Listening to customers involves listening and retention solutions (satisfaction surveys, promotional gifts, free support service …) a series of incentives that can generate customer wellbeing that, although require some effort on our part, are sure to help customer retention and maintain overall customer satisfaction.
Technology is an indispensible pillar of support. Technological tools provide many opportunities to define loyalty strategies. If used well and with the right software this type of tool enables us to keep ahead of the competition in customer retention and many other fields.
With a process management software like AuraPortal all staff and partners can get involved in the customer satisfaction process. Whole team coordination and the information they generate will make the service more agile and personalized, whilst also reducing costs.
AuraPortal has achieved a much desired objective which has been unreachable until now: the total integration of CRM operations and functionalities in the company’s own BPM processes.
It enables processes to build CRM applications without any programming. Therefore any function relating to marketing, sales, customer service, etc. can be designed and executed quickly and easily, hereby building a unique step by step CRM completely adapted to the company’s needs and means.
Customers can deal with the entity remotely or using any device (Laptop, Tablet, Smartphone, etc.) but unlike all other products on the market, these actions are not treated as isolated events, instead they form part of the entity’s process flows which flow and allow inter-communication between the customer, marketing, technical and support staff, subsidiary branches, agents, etc.
Thus, it enhances integration and retention, minimizes the time-to-market for new products and services, provides greater network control, unites efforts to achieve unprecedented effectiveness and significantly lowers costs.