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Debunking Customer Retention Myths That Are Affecting Your Business

Breathing more life into your business by considering a customer retention program makes your brand’s dealings spot on. Almost half of the top 100 brands on the National Retail Federation list at least run a rewards program of their own kind. Competition is healthy and on the increase. Each brand is discovering their own secrets of retaining their customers. Every brand wants to make sales and stay in the limelight.

Customers are always right. Big and renowned brands have employed different customer retention tactics through rewards programs that have sometimes failed. Once the implementation flops, customers may turn their backs on your brand. First, understand all your customers and their needs. You will then know what is best for them and how to convince them purchase it.

Your customers shouldn’t flee you because of a mistake you can rectify before implementation. We shall discuss a few myths that can be detrimental to your business and how to counter them.

  1. A satisfied customer forever sticks by you

Change is inevitable. No one is constant in their dealings. We all change our minds on various aspects and circumstances. Reasons best known to us. Tastes and preferences change with time. There is always a best music hit dropped each year. You will keep shifting each time something new hits the market. This directly affects the businesses of the brands involved.

Competitive advertising especially through social media has an effect on the motivation, purchase and behavior of your customers. What is on your newsfeed dictates how long your customers will stay by you. With time and changes in a customer’s need list may increase or decrease. They begin to cross check if really your brand and its products will be useful to them.

Many brand employ similar or almost similar reward programs. What makes you think your top repetitive customers may not descend your ladder to go up another floor belonging to another brand? Engaging your customers to know how they feel about your products or services and changes you can make or adjustments.

How do you counter this? Be prepared in case a few customers walk away. You can prevent this by improving your customer experience. Check your reward programs reassess and keep updating them. Take not of your email marketing tactics and create a program structure that favors both your brand and your customers. Take charge of your brand’s explainer page. If you want more sales and customers having interest in your products be tactful.

2. Customers make purchases only on discounted products and services

Saving for rainy days is everyone’s aim. It is not being a miser. Many of us love cheap and low priced products as long as they can serve us well we wouldn’t mind. Customer retention strategies are used differently for different brands. Rewards could be in terms of free shipping or delivery, some dollars subtracted or a certain percentage deducted. All these are forms of discounts. This is a high determinant of product purchase.

Different brands are in the struggle to lure customers with amazing discounted products and services. How best you work with this discounts will determine how long you will have your customers around. Competition exists and we all have to compete favorably.

Despite fighting to be at per or pass your competitors who seem to be doing well with the discount strategy, you can hack this by all means. Deciding to send thank you emails to your clients frequently will make them feel engaged and valued and purchase your product whether they are discounted or not. Volkswagen Group does this all the time. Birthday rewards work well too to children’s products especially. Amazing customer support will make your customers stay longer by you.

Customer experience lasts longer. Maintaining this through more reward programs like special events like company annual get-away, beautiful brandings and more advanced access to product and service sales is beneficial.

3. You must reward your customers often

That is totally wrong and can get expensive and lead to a company’s closure. If you keep rewarding all your customers what returns do you get? What are the profit margins? If Air France Corporate could begin giving free air tickets to its customers every time they make a booking don’t you think this would weigh on their fuel expense? If this becomes a common practice and it takes some halt customers will sulk and take a U-turn. This is costly and dangerous to progress of your brand.

Reacting to this is vital and should be in a polite way to make your customers hold on to you. Thanking your repetitive customers is top on your list and hold on to you and your products. Impromptu rewards are ideal. Once in a while offer a surprise waiver or a free shipping but not always. Making it a habit might see you fall off the business ladder

4. Adapt to changes-yesterday’s solution may not be today’s

Keep adjusting with the changes that occur in your rewards program. Their customer’s needs changing will make your competitors up their rewards game and make to marvel their customers. You wouldn’t want to lag behind. Making your programs constant is wasteful and what worked for you in the past and was tremendously successful may not work for you when the same problem arises.

Edenred Reward programs are an appreciatory tool and should create a positive long lasting experience to your customers. This in turn rewards your brand by increasing your product purchases. When your customers speak up what they think about your products there is room for improvement. They are always right and if they loath your product you have to put up corrective measures. Work on creating a customer feedback section with ratings and comment section. Investing in this is beneficial. Positive criticism from your customers about your products and services is inspiring and a motivation.

5. Do not interfere with your program whatsoever

Tempering with your program means creating a breakage rate that is a percentage of awarded points that are not being spent. Not redeeming points in customer smart cards is unhealthy for your brand’s reward program. Encourage them to spend their earned points so that they can be motivate to keep shopping and earning rewards.

Indicate information on how to redeem points on the explainer page. Make it bold if possible and update your customers with their account details and products worth their points. Keep your customers posted.

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