Tailored Strategies for Customer Churn Management

Articles, customer retention, loyalty, marketing, strategy
Customer churn in the services industry is still a growing issue, primarily because many consumers have little or no allegiance to a particular service provider. So, how do we solve this? The answer is knowledge: know your customers and know your prospects. As retailers are the customer-facing end of the sales cycle, much of the responsibility for producing customer loyalty has to lie with them. I know many companies who collect vast amounts of data for ensuring risk management procedures. However, this information can be converted into a powerful tool to reduce churn by helping to answer three basic questions: How do I sign up profitable customers? How can I enhance loyalty with my most profitable customers? How do I handle my existing customer base? (more…)
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Six key questions to audit a loyalty program

customer acquisitions, customer retention, loyalty, marketing, word of mouth
These are the six key questions which you would use in an audit of a company's customer loyalty program: What virtues of your business have the largest impact on your customers' satisfaction? How do you divide and define your customer segments? Whose responsibility is customer service? What is your retention rate and what is the trend? What is the lifetime value of a typical customer? What percentage of new customers comes from recommendations and how has this changed over time? (more…)
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Ideas for stimulating your customers to recommend your service

customer acquisitions, customer retention, loyalty, marketing, word of mouth
Let’s be serious. Nobody wakes up and decides to tell all their friends and family what a great place TOP’s Restaurant is! Marketers who want to take advantage of word-of-mouth communications need to take a more subtle approach. We take customers that arrive on personal recommendation but do little to cheer them to carry on the tradition of spreading the word. I have outlined few ideas you could use for stimulating your customers to recommend your service: Catchphrase - You can’t go wrong in asking customers who express satisfaction to tell their friends. They might be more inclined to do so if you ask them and it will surely do no harm. (more…)
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Keeping the pace with customer expectation

customer retention, loyalty, marketing, strategy
The significance of data is that you can see behaviour change daily. If a trend emerges from analysis of your data, it is appropriate to review marketing strategy and assess the success or relevance of the plan under way. The data and the insight they provide become an extremely precious indicator of customer satisfaction. Data linked to loyalty programs becomes a rich source of market research. It is not what people say they do but what they actually do. Naturally, market research still has a valuable role, it is still required to determine why customers have changed but its use has become even more focused. By analysing your loyalty program data, you can recognize which of your customers visit frequently (and spend a lot) which ones visit infrequently (but still…
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Customer retention is not easy but it is rewarding

Articles, customer retention, loyalty, marketing, strategy
Customer retention programmes have historically had insufficient priority in most sectors, but then the forces affecting customer churn, and therefore the need for retention focus, have never been so great. The idea is not new. What is new is the approach. What is now being witnessed is a market increasingly commoditised and far more susceptible to competition - from other players and from new media. Customer knowledge and confidence have had a significant impact: it has become so much easier to compare and to swap products. Changing sales structures and wearing away of face-to-face interaction have helped to dilute or eradicate conventional 'loyalty'. What direction does this give the services marketer? It leads the way to a re-examination of profit drivers and a critical evaluation of current programmes. The business…
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Stimulate Loyalty – Power of networks, data and convergence

Articles, customer acquisitions, customer retention, loyalty, marketing, strategy
Loyalty schemes are an established feature of the retail and services landscape. They have become widespread and arguably ubiquitous. There are a number of major groups of loyalty schemes, including: retailer loyalty schemes, financial service loyalty schemes, online reward schemes, frequent flyer and other travel reward programmes, geographically based loyalty schemes, and coalition loyalty schemes. Businesses have been keen to enhance customer retention, to find approaches to increasing customer spend and encourage customers to act as advocates. When the first loyalty programs hit the market uptake was huge and rewards for marketers were high. Some years on, however, the market is overrun with these schemes, each with little point of difference from the next. As a result, consumers are evermore difficult to please, and uptake on offers is reducing. One…
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Generation Y – Exploring marketing opportunities

Articles, loyalty, strategy, word of mouth
It takes more than selective targeting to market effectively to Generation Y. Members of Generation Y seeks products that create an ambiance and community experience, rather than just provide a function. They like brands to express a reality in which they are involved, interconnected, and interactive. To be successful, build a brand with them, not for them. Computers have made knowledge cool through a fusion of fun and learning. Merchandise concepts that make exploring the unknown fun, bring information to life, or challenge consumers to design their own products will be a sure-fire hit. Also, look for cause-related tie-ins, lifestyle sponsorships, interactive promotions, etc. to become more means by which brands can provide memorable experiences and build community. Some very large brands are struggling to learn these lessons. Therefore, they…
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10 Tips for building customer loyalty

Articles, customer retention, loyalty, marketing, strategy, word of mouth
I propose these tried-and-true tactics with interpersonal strategies that can deepen relationships with customers, establish greater levels of trust and build stronger customer loyalty. Here are 10 tips for you to consider if you are sincerely interested in having a business that is notable for customer loyalty and referrals. 1. Understand the true purpose of marketing. Effective marketing is largely about building trust and developing relationships. The purpose of marketing is to "create and maintain a strong feeling with customers so they are mentally predisposed to continually choose and recommend you." Successful marketing also requires being relevant and unique. This brings us to tip #2. (more…)
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A Customer

Articles, customer acquisitions, customer retention, loyalty, marketing, niche
Sam Walton founder of Wal-Mart nicely describes A Customer... A customer is the most important person in any business A customer is not dependent upon us. We are dependent upon him/her. A customer is not an interruption of our work. He/she is the sole purpose of it. A customer does us a favor when he comes in. We aren't doing him a favor by waiting on him/her. A customer is an essential part of our business--not an outsider. A customer is not just money in the cash register. He/she is a human being with feelings and deserves to be treated with respect. A customer is a person who comes to us with needs and wants. It is our job to fill them. A customer deserves the most courteous attention we can give him/her.…
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Viral Marketing… to do or not to do

Articles, customer acquisitions, loyalty, marketing, viral, word of mouth
What is viral marketing? The intended result of viral marketing is word-of-mouth marketing, which is when people tell other people about the great new video on YouTube, or application on Facebook. Viral marketing is something that has been created by the company themselves to promote their products, in the hope that people who see the campaign will be so impressed that they will pass on the message to their friends and family. Hundreds of companies, large and small, are coming up with ingenious ways to promote themselves, by posting videos on YouTube, inventing adver-games, and even employing “connector agents” who spread the buzz about a new product or sale through their own social networks. Inc. Magazine recently reported that 82 percent of the fastest-growing private companies are using these kinds…
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