Most companies don’t focus enough on customer retention.
Until it becomes an emergency.
“What the hell’s going on?” - or worse,
“What the hell happened?”
For many established businesses,
The majority of revenues and profits come from existing customers.
And keeping them is way less expensive than replacing them.
So, be proactive and work to minimize customer loss.
Here’s a basic strategy:
1. Talk to customers you’ve recently lost.
2. Identify their reasons for leaving.
3. Then use the insights to improve the customer experience,
So existing (and future) customers will stick around longer.
Here’s a simple process to follow:
➡️ Use your CRM and transaction data to identify a group of recently lost customers.
➡️ Reach out to them and offer an incentive to participate in a short interview.
➡️ Be prepared to record the conversations (with permission) or have a dedicated note-taker.
➡️ Ask the following questions and probe to get as much detail and color as possible:
Q: Thinking back, what happened that pushed you to start looking for an alternative to our product/service?
Q: What company’s product/service are you now using?
Q: What factored into your decision to switch to this company?
Q: In your experience, how is this new company’s product/service better than ours?
Q: What changes could our company make to earn back your business?
Now, use the customer insights you’ve gathered to improve customer satisfaction and loyalty - and watch your retention rate improve.
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When you're ready to use customer insights to improve and grow your business - reach out, we can help.