Long Term Customer Service Strategies

Long Term Customer Service Strategies

Posted by Meredith Estep on Fri, Jan 04, 2013 @ 10:31 AM

Companies tend to sink a large percentage of their marketing budget into attracting new customers. However, it is the longtime, loyal customers that are typically the bread and butter of any financially stable company. Nurturing longtime relationships with customers is more cost-effective than attracting new customers to your business, and it may be more effective for your bottom line as well. Loyal customers tend to bring in regular sales for the businesses they like best, and they are less likely to bail over a single negative experience with those businesses. Check out these long term customer service strategies to keep customers coming back to your business time and time again.

Beware Coupon Websites
While discount sites like Groupon were originally designed to help build customer loyalty, it is not the result seen by many participating businesses today. As the website has become known for its discounts, bargain hunters have flocked to Groupon and like sites to grab the deal and move on. The loyalty factor has been all but forgotten for some of those businesses. Instead of relying on deep discounts to get customers in the door, focus on strategies that will bring them in and then encourage them to stay for the long term.

Avoid Piling on Fees
One of the fastest ways to blow long term customer retention is to begin piling on fees for various products and services. Penny-wise and pound-foolish is the best way to describe this strategy. While some fees might truly be unavoidable, most businesses may find that absorbing the additional initial cost adds up to significantly higher profits in the long run. Consider the free bags offered by Southwest Airlines that has served to improve their customer loyalty over the long haul.

Employ a High-Tech Loyalty Program
Customer loyalty programs that promise discounts or free gifts after so many purchases are still a popular way to build customer retention. However, instead of passing out cards for this purpose, many businesses are now letting technology take over tracking customer transactions. Mobile services allow companies to make customer loyalty programs easy and paper-free. An added bonus is the ability by the company to accurate track customer activity.

Make Service Consistent
Customers continue to patronize businesses that provide the same high level of service every time they come in. There is no great secret to offering consistent customer service ? it boils down to careful hiring practices, ongoing training and incentives for service reps. By focusing on this aspect of your service, you are sure to build customer retention at the same time.

Think Fun
Companies that bring fun into the customer service realm tend to effectively keep customers long term. For example, Southwest Airlines is known for the fun it brings to air travel, in an age where airlines are rarely fun to deal with. Add games to your mobile loyalty program, or hold regular contests in your office and encourage customers to participate.

New customers are important to any business, but when focus is primarily on bringing in new customers, loyal customers are sometimes forgotten. A long-term customer service strategy that focuses on customer retention is often the best way to build a healthy, robust business with a booming bottom line.

- Meredith Estep

Source: http://www.unitiv.com/intelligent-help-desk-blog/bid/93726/Long-Term-Customer-Service-Strategies

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