How To Retain Customers | 3 Strategies!
3 Customer Retention Strategies That Keeps Customers Paying You…
Want to learn how you can increase customer retention and the lifetime value of your clients?
In this video I talk about what exactly is customer retention, what are some of the top customer retention strategies you should be using, as well as specific examples of how we’ve used customer retention to increase the lifetime value of our clients.
These customer retention strategies can be executed by a customer success manager, automated through a customer relationship management system, or even done easily by yourself!
Although “customer loyalty” programs are an okay way to keep customers coming back, these strategies are much more efficient.
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[00:00:02] What’s going on, everyone? Ravi Abuvala from Scaling With Systems here in a beautiful Cabo San Lucas, Mexico. I’ve been down here for the past 14 days with a few of my other friends, but in this video I gonna be talking you guys a little bit about some customer retention or client retention strategies. Now don’t be fooled. Customer client retention can feel like one of those fufu things that doesn’t have much importance to it. But if you actually follow this correctly, it can be the difference between you having a wildly and massively profitable business that sees double digit growth month over month vs. an OK business where you’re fighting for every single customer and you see annual growth of just single digits.
[00:00:40] Think of it this way. Right. So let’s say that this month you do eighty thousand dollars in cash collected for your company and next month you have a goal of hitting a hundred thousand dollars, which will be a 20 percent increase in your month in cash collected. And if you did that without a solid customer or client retention strategy, then you’re going back in the second month in the next month, having to find one hundred thousand dollars worth of cash versus if you had a really solid customer retention strategy. Then your clients are going to renew for the next month and that eighty thousand dollars is going to carry over and you only have to find twenty thousand dollars more in order to hit that hundred thousand dollar growth mark. So really quickly, for those you that don’t know what customer retention, client retention is, is essentially the idea that whenever someone signs up with you, they’re either a continuously paying you every single month for their services or B, there’s moving up in your value ladder. If you have some kind of product or one off service where they buy one thing upfront, then they want to buy the second thing. And then the third thing on the back end.
[00:01:36] Customer retention, is how you can turn one customer from someone that just gives you 1000 dollars one time to someone who gives you twelve, twenty, thirty, forty thousand dollars over a period of a few years. So let’s get right into it. What are the three customer retention strategies I recommend my clients at Scaling With Systems. The first one is going to be set expectations correctly. Now, if you’re doing the sales calls or you have somebody else doing the sales calls, it’s incredibly important that whenever someone buys in your program, they understand 100 percent what they’re buying into and the expectations are understood. So they’re not expecting this magical pill that they swallow and all their problems are solved. Instead of saying, hey, we’re gonna get you a hundred bookings next month. And, you know, that’s honestly on the higher end, you can say, hey, we’re gonna shoot for about 10 to 15 bookings for you. And you can set their expectations at a reasonable level. That way, if you meet them, they’re happy if you exceed them. They’re thrilled. And that way, if you don’t have to go underneath them and disappoint them.
[00:02:30] The second customer retention strategy that I would recommend that you follow is to create a customer retention, S.O.P. So we love to use ASANA and I’ll put a link in this video similar to another ASANA tutorial I walk through on how we use ASANA in order to hold our centre operating procedures. But you want to essentially create a standard operating procedure that takes your account manager or you do the exact steps they need to take from day one the client being signed on for month, one month, two months, six months, 12 month, 30, 36 until that client has been off-boarded by you. These simple and easily followable steps can include stuff like make sure you send a client welcome email. Make sure the client conducts an onboarding call. Send the client a letter in the mail. Send the client a bottle of wine on Monday to send the client a Starbucks gift card home on three Sunday. Client a t shirt on, man for whatever you essentially want to do that no one can be S.O.P able teachable to somebody else. Number two, let the client know that they’re welcome, they’re wanted and they’re special. And number three, actually increases the efficiency of your entire team.
[00:03:27] Finally, the third and final customer retention strategy I recommend is have a ticketing system so that you’re able to answer all of your client’s needs whenever they need them. Most small business owners or clients that I see typically when they come in there, whenever they close a deal or they sign somebody or their company, there’s no real sure and easy channel for that client to reach out with questions. And so what an heavily ends up happening is that client reaches out to the salesperson that close them or on your cell phone because you call them whenever you close them in asking questions and then you get upset that they’re messaging you through the text messages, asking all these questions. And on each side, it’s a massive amount of inefficiency and everyone’s upset at everybody. We like to use a ticketing system like Zendesk. That’s what we teach our clients as that’s getting with systems so that as soon as that client is close and brought onboard into our company, they get an email, they get a personal phone call, they get a text message, and they’re let know inside the core section. Hey, if you have any questions whatsoever, you email firstname.lastname@example.org as that ticketing system is monitored 24/7 and we’re able to answer you back within 24 hours.
[00:04:28] This way, if the client’s texting me or texting the closures, they can easily say, hey, e-mail to support, and we don’t have to get upset that everyone’s messaging us. And also the client can get the exact answers that I need by e-mailing support and having someone trained like a virtual assistant or an account manager on the other end of that support ticket that’s able to walk them through any questions they have concerning their problem. So that’s it, guys. Those are your customer retention strategies. Okay. Number one is gonna be to make sure that you set expectations correctly, either you or your salesperson, so that whenever they buy into the program, it’s exactly what they expected whenever they paid. Number two is that you have a standard operating procedure. In place, some kind of action sequence or automation that on boards the client and sends them gifts or let someone know, hey, this is how many touch points you do with this many e-mails or phone calls you do. And here’s the gift you need to send so that every single client receives the exact same amount of service. And number three, make sure you have some kind of ticketing system in place so that it’s very clear to your client how and where they can reach out in order to get answers. And it doesn’t burden your sales team or you, and it’s able to actually be easily delegated all to a virtual assistant or a customer success manager.
[00:05:31] If you got value out of this video, as usual, pleased to meet with, they will give it a thumbs up comment down below any questions you have about customer retention or client retention to make sure you hit the subscribe button below? And also, as usual, in case you guys have any additional questions about customer success or how to even find customers or clients in the first place, or how to make your first dollars online or where to find a virtual assistant. I’ve created entirely free courses, about eight and a half hours of training where I walk through what customer success is, what kind of business model you should be running, what those S.O.P is look like an order to onboard a client, where to find a virtual assistant, what the messaging script should be and so much more. All you have to do is click the link down in this video and you’ll get instant access to it. Thank you guys so much for your time and I’ll see you in the next video.