That's a popular blunder to overlook current customers in the search for new ones. While acquiring new customers is essential for business development, meeting the needs of your current customers is just as important. Businesses that execute a good customer retention plan will enjoy the following advantages.
According to a well-known study conducted by Brain and Company, a mere 5% rise in retention rates will boost profits by up to 95%. When compared to new customers, repeat customers are more likely to spend more and try new items. A study conducted by the Harvard Business Review found that “increasing customer retention rates by 5% increases profits by 25% to 95%.” As a result, businesses can strive to create a customer base with confidence and loyalty for their brand.
Acquiring a new customer is time consuming and costs nearly five times what retaining an existing customer costs. Furthermore, businesses should confirm that repeat customers make daily transactions or subscribe to services. Retaining a repeat customer expands your customer base and provides valuable testimonials. These endorsements serve as a seal of approval that can entice new customers. It also aids in obtaining useful input that can use to strengthen the situation in the future.
However, due to continuous overtime and long hours on the front end, businesses have been unable to concentrate on after-sales programs or customer retention at times. If a company’s sole emphasis is on consumer retention, it risks obstructing its primary work and jeopardizing its core competencies. The most convenient and appropriate way to take care of customer retention without hindering any other work is through BPO services.
For many BPOs, improving customer service is an ongoing goal. As a result, these BPOs have a unique opportunity to impact customer retention through value-adding customer service interactions.
Certain ways through which BPO services improve customer retention and satisfaction are:-
Call Center Services is one of the most underrated and underutilized services to improve customer retention. It also acts as a catalyst in improving customer loyalty towards the services as it builds trust and a sense of responsibility for the company. Services that can cater through the call center are inbound calls (where an agent receives the call from the customer), outbound calls (where the agent reaches out to the customer through call ), order placement, fulfillment and tracking etc. It helps in getting valuable feedback from customers too. Firms like We Win Limited uses such feedback to share it with the parent company and add valuable insights from both ends.
Data has become the USP for many companies. The segmentation, management, and better data analysis help the company segregate their customers into different segments and cater to their needs and expectations accordingly. However, data management is time consuming and needs certain skills. Hence, outsourcing your data can resolve one of the biggest issues for a firm. And better management of the data will help the company make descriptive analyses for future scope of improvement.
There are times when people aren’t satisfied with the firm’s interface or the OS (Operating System). It is slow or difficult to negate. Services such as slow payment portals and data security play a major role in service providing industry. We Win Limited has successfully helped organizations like IRCTC to improve their BPO services and portals that have eased the interface interaction to a high extent, increasing their customer retention by folds.
While customer satisfaction is a major driver of retention, offering consistent and appropriate customer service before, during, and after the encounter stage is at the heart of retention, particularly as mobile phone companies compete to add new services or improve service quality to increase customer satisfaction. But in-house is going to be time consuming, highly costly in terms of infrastructure, hiring, training and acquiring resources. Hence it’s always better for organizations such as the government, private sector and start-ups to outsource customer service such as customer relationship management.