The importance of maintaining a high customer retention rate—the rate at which a company turns one-time buyers into return customers—is evident, especially when it comes to the bottom line.
For example, aggregated research from Customers That Stick shows that:
- Repeat customers spend nearly 70 percent more than new customers
- It is up to 10 times more expensive to attract new customers
- Increasing retention rates by only 5 percent can lead to a profit increase of up to 95 percent—with a minimum of 25 percent
It’s clear that customer retention directly correlates with profit; however, a company must first identify how to increase and improve customer retention in order to see revenue growth. Here are a couple of ways your organization can begin doing so:
- Consistent agent training: Whether it involves hands-on exercises conducted onsite or sending copies of call and desktop recordings to individual agents so that they can see what went right (and wrong) during customer interactions, there are plenty of options available for contact center managers to improve agent training, coaching and personal development. For example, according to the above mentioned research, “repeating oneself” was listed as a top cause of poor contact center service. Managers can leverage the call recording capability within their call center software to flag key phrases or words mentioned by customers during calls—like “repeat” or “I already said that”—to more quickly identify the root issue at hand and train agents appropriately.
- Data analytics: Another reason customers may be slipping through your fingers, so to speak, is because you are not properly leveraging the data that is being collected within your contact center. For example, among those customers who listed repetition as a top frustration, many said it is especially true when engaging with agents across multiple communication channels. If your contact center solution cannot synch data (i.e. contact information, historical data, voice of the customer data) between all communication systems, it will likely lead to repetition and dissatisfaction.
Ready to increase profits through customer retention? Improving on these two areas of focus will surely get you there.