As the manager of a cloud-based contact center, we understand the volume of your concern over customer service. Of course, we also know the role customer retention plays in solving this equation. After all, effectively measuring and analyzing customer retention can prove to be one of most valuable ways that an enterprise can spend its time.
In the simplest terms, the rate of customer retention can be a direct indicator of how satisfied a customer is with their service. Not only this, but successful customer retention is a key factor in developing and expanding business that is done with individual clients. The more satisfied the customer, the more likely they are to buy into additional services and products offered by a company. Fred Reichheld, author of The Loyalty Effect, states that as much as a 5 percent increase in retention can increase profits anywhere from 25 to 100 percent.
Any number of strategies can be implemented to increase the rate of customer retention. For starters, consider an incentive program, tiered services or strategic company partnerships. If two companies work well together and share a common customer base, partnering up and offering joint programs can be mutually beneficial to both, and see profit skyrocket as a result.
Metrics that go along with customer retention include measuring churn and the enterprise’s net promoter score. Simply put, churn is the rate of turnover in a company and the net promoter score is a satisfaction measurement that indicates the degree that a company is recommended by customers to others. While these, like retention rates, are important to know, it is even more important to analyze the reasons behind these metrics.
By elevating your awareness of how and why customers act the way that they do, you’ll be able to tap into a wealth of knowledge and insight that will ultimately lead you to locking in customer loyalty. So, are you ready to increase profit and the overall value you offer your customers?
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