Top tips: On how to beat customer churn

Paul Roberts. Photo / Supplied

Paul Roberts of business consultancy Igniter gives tips on how to beat customer churn.

Why aren't customer loyalty schemes enough to retain my customers?
Fundamentally, customer loyalty schemes are fine. Rewards given to customers should only be a means to an end, providing insights into their needs, expectations and buying habits. It's when rewards become an end in themselves that they become little more than customer "bribes".

How do I prevent customer loss and gain a good understanding of my customers?
The successful companies are those which see customer retention not as just a marketing problem but a "whole of business" function. Look at how well you understand your customers and ensure you're acting on everything they tell you.

Simply locking them into contracts isn't a long-term solution. Many companies think that doing market research is enough, but, by itself, this is usually a waste of time. Your customers can, and are, telling you much more than just research results. There is a lot of valuable information within your business' databases.

What customers are buying, how they prefer to interact with you, their evolving spending and their lifestyle choices can all be discovered within your data.

How do I achieve customer engagement once I have this information?
We've all seen people queuing to get their iPhone or walking the extra distance to get their favourite coffee. To achieve and sustain such levels of customer engagement you must understand the emotional response you create in your staff and customers that makes them feel special.

Are my staff as important as my customers in the success equation?
Successful companies have realised "customer-centricity" must begin with their own people. Achieving strong staff engagement requires the right training, defining key performance indicators and empowerment of innovative decision-making.

So in the end, it's all about my customers' experience?
Yes, though many businesses define customer experience as customer service and focus on reducing in-store queues or having call centre staff "smile before you dial".

While these are important, customers will define a great experience for themselves. Successful companies constantly monitor the end-to-end experience, to ensure their brand promise is delivered across every customer touch point.

www.igniter.co.nz