PUBLIC RELATIONS
CUSTOMER RETENTION NEW BOTTOM-LINE TO SUCCESS
mwhpublicrelations.com
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PUBLIC RELATIONS MWH Public Relations (MWHPR) employs a comprehensive approach in learning our clients’ business needs and expectations to fully execute successful public relations campaigns. We offer state-of-the-art products and services that actively respond to our clients’ target markets. Contact us today and let us distinguish your brand, drive your new acquisitions and repeat business.
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CUSTOMER RETENTION TOOL KIT TABLE OF CONTENTS Customer Retention Service Our Approach
Customer Service History & Segmentation Segmentation Groups
Stay in Touch Helpful Hints
Reconnect with Lost Customers Startling Statistics
Loyalty Programs
Loyalty Program Solutions
Customer Satisfaction Surveys Customer Satisfaction Surveys
The End Process
Customer Service Training
Training Options
Customer Retention Rate
Customer Retention Value Proposition
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CUSTOMER RETENTION SERVICE MWH Public Relations (MWHPR) offers the Customer Retention service to help our clients fully engage their customers, build long-term relationships, and drive repeat business. We believe customer retention is a process and have committed resources to ensure our clients are enacting the proper strategies to maintain sustainable business growth. The MWHPR Customer Retention Specialist (CRS) is charged with helping clients develop and implement solid customer retention practices that become an intricate component of corporate strategy. With our phased-in approach, our clients are guided through the entire process and learn how to effectively use customer retention tools and strategies to enhance their customer relationships.
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OUR APPROACH Phase
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Assessment
2
Phase
Planning and Development
The CRS evaluates our clients’ current customer retention
The CRS works with our clients to create or fine-tune
practices and identifies opportunities for improvement.
existing customer retention practices that reflect their
The CRS also isolates any mitigating factors that could
overall goals and objectives and plans for future growth.
impact successful implementation.
This determines the strategies and/or tools that our clients will use to fully engage their customers.
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Phase
Implementation
4
Phase
Measurement
The CRS ensures that management and designated
The CRS helps our clients determine the best method of
employees understand the proper use of the customer
measurement to ascertain the effectiveness of their customer
retention tools and how to incorporate them into their daily
retention practices. Clients then set appropriate benchmarks
routine. The CRS will then determine if any supplementary
and review monthly, quarterly, or annually as they see fit.
MWHPR services are needed to further enhance newly
MWHPR encourages our clients to use the Customer
developed practices.
Retention Tool Kit as a reference guide in spearheading their customer retention efforts. Our CRS, Carolyn Hartmann, is available to help you embark on your journey. You can reach Carolyn at (713) 840-6392. 3
CUSTOMER SERVICE HISTORY & SEGMENTATION Companies who are leaders in their markets know
customer service history and makes segmentation
who their customers are: when they buy (purchasing
a much easier process. The software also tracks
patterns), how they use their products and services,
customer behavior which facilitates product and
what they are likely to need or want next, and why
service development.
they buy from them. Having a 360 degree view helps them stay one step ahead of their customers
Once your customer profiles are in order, you can
anticipating their future needs and requirements.
begin the segmentation process. Segmentation is the secret weapon of any effective marketing program.
Ideally, your customer intelligence should originate
It provides a better user experience and definitely a
from one data source. If you have customer
better conversion rate because you are reaching out
information dispersed among multiple platforms,
to a targeted audience group. Every organization has
some form of systems integration might be required.
its own segmentation strategy. However, there are
There are various types of Customer Relationship
some basic practices or principles that can be applied
Management (CRM) software available that houses
across the board.
Customer service history and segmentation help you hit the ground running. They form the basis of all your customer retention practices and allow you to anticipate your customers’ needs and expectations.
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SEGMENTATION GROUPS The following provides a list of the different groups that many organizations choose to segment.
High Risk
Loyal
Target customers on the verge of discontinuing
Target long-term customers to show your
service immediately to see how you can improve the
appreciation for their business and acquire potential,
quality of your products and services and relationship
new services.
building efforts.
Revenue Generators
Inactive Target customers who have not been in contact with
Target high revenue customers on a regular basis for
you over a certain period of time to determine if there
increased profit margins.
are any issues of concern.
New
Lost
Target brand new customers within the first two
Target customers who have relinquished services to
weeks to establish relationship and build credibility.
obtain feedback on the quality of your services and your relationship building skills.
Current Target existing customers to retain business and qualify sales leads. 5
STAY IN TOUCH Frequency of communication is a must if you want to sustain your customer base. Staying in touch with your customers builds rapport which leads to future assignments and referrals. Both are key components of a successful business plan. This approach will enhance your perception as a dependable and professional resource. The following strategies can help you establish the framework for stronger relationships generating significant ROI.
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CALL YOUR CUSTOMERS
EVENTS
SOCIAL MEDIA
Company-wide and/or networking
According to Nielsen’s 2012 Social
In the age of pervasive online
events are a great way to connect
Media Report, Americans spent 121
communications, it’s easy to lose
with new and existing customers
billion minutes on social networks
sight of the traditional forms of
and reestablish former relation-
between July 2011 and July 2012,
customer contact. The simple act
ships. Branding, special occasions,
up from 88 billion the previous
of calling your customers is the
open houses, etc. provide the
year. Social media is here to stay.
mainstay in customer service.
opportunity to unveil new services
Whether it’s to keep open lines of
You can inquire if your prod-
and reveal the future direction
communications with C-level exec-
ucts and services are living up
of your company. These events
utives or to promote your brand in
to your customers’ expectations
also generate sales leads and
new and exciting ways, businesses
or hindering their operations.
encourage customers on the fence
can generate significant revenue
Calling your customers on a
to return. Your customers are
with social media if used prop-
regular basis tells them they are
appreciative and are more likely
erly. Engaging in social media on
on your radar and are important
to view you as reputable service
a steady basis helps you achieve
to your business.
provider who cares.
constant visibility with your target audience and create a special bond where your customers are invested in your success and are willing to take notice. 7
HELPFUL HINTS BLOG
eNEWSLETTERS
EMAIL CAMPAIGNS
A blog is a simple and inexpen-
Online newsletters are extremely
Email campaigns are useful
sive way to stay in touch with
valuable in connecting with your
tools if leveraged properly. They
your customers. It’s one of the
customers. They facilitate dialogue,
provide the perfect outlet for
most powerful weapons in your
strengthen relationships, enhance
ongoing communications with
marketing arsenal. Your blog is
marketing efforts, and increase
your customers. Unlike tradi-
primarily used to promote your
lead generation. eNewsletters
tional marketing techniques, email
products and services, keep your
also provide helpful analytics
campaigns can be highly custom-
customers informed about the
for tracking and measuring their
ized in delivering messages to a
latest company updates, increase
effectiveness. Most importantly,
particular segment or target audi-
brand awareness, and attract and
they further differentiate your
ence. They also produce detailed
retain customers. Blogging also
brand and achieve customer loyalty
analytics to help you secure the
provides a more personal connec-
and retention.
success of your customer engage-
tion with your customers giving them the opportunity to provide ongoing feedback.
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ment strategies.
RECONNECT WITH LOST CUSTOMERS The national average of customers who leave their service provider every year is roughly twenty percent. That’s one out of five of your current customers! Several surveys administered by the American Society for Quality Control, the Harvard Business Review, U S News & World Report, and even the Swedish Post Office titled “Satsa pa Kunden” (“Focus on the Customer”) investigated why customers end business relationships. Each survey was done independently, yet produced the same results. 9
STARTLING STATISTICS 14 percent left
9 percent left for the
9 percent moved out
68 percent said
because complaints
competition.
of town.
they left for
were unresolved
“no special reason.”
It’s in your business’s best interest to reconnect with the 68 percent of customers who severed ties to recoup lost revenue and gain invaluable feedback as to why they ceased contact. How can you and other organizations circumvent this scenario? Here are some helpful tips for reestablishing customer relationships • Monitor customer retention programs or initiatives to refine current practices or develop new strategies. • Categorize top reasons why customers leave to identify improvement opportunities. • Regularly obtain customer feedback to deter customer exits. • Offer incentives to returning customers. • Monitor returning customers closely to gauge their satisfaction. • Invite lost customers to company-wide events to demonstrate your level of commitment. • Customers leave for a wide variety of reasons, some because they had an unpleasant experience, others because they felt unappreciated, or those that no longer needed your products and services. How your business responds to your customers’ departures has an enormous impact to your revenue stream and could adversely affect public perception giving your competitors the upper hand. 10
LOYALTY PROGRAMS Whether you’re a small business or global franchise, investing time and resources in a loyalty program is a major component of corporate strategy. While expanding your customer base is essential to business growth, long-term customers should not be taken for granted. Promoting customer loyalty is crucial for many reasons. Some of the benefits include: Repeat Business
Competitive Advantage
Greater Volume
Word-of-Mouth Marketing
Cross-Selling Opportunities
Increased Profit Margins
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LOYALTY PROGRAM SOLUTIONS “Most businesses today are at a very basic level in how they use loyalty programs, and many customers see them as punitive. Businesses that do reward programs right can garner incredible loyalty,” says Harvard Business School senior lecturer José Alvarez.
TRADITIONAL LOYALTY PROGRAMS Simple Points System – Customers work toward a certain amount of points to earn rewards. Tier System – Customers join a loyalty program and
A well thought-out loyalty program can help iden-
receive an initial reward. Value of the reward increases
tify purchase data from regular customers. Once
as they move up the “loyalty ladder.”
shopping habits are tracked, businesses can better anticipate their customers’ needs. Loyalty programs can then be tailored to resemble customer behavior.
Upfront Fee for VIP Benefits – Customers are charged a one-time fee to simplify the buying process.
The following provides examples of successful loyalty
Coalition Program – Customers benefit from a stra-
programs that have proved successful for both small
tegic partnership between two service providers that
and large businesses.
provide complimentary services. Games – Customers win rewards by participating in competitive games.
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ONLINE LOYALTY PROGRAMS Mobile Integration – Mobile apps allow consumers to make payments via a QR code. Mobile apps store consumer transaction history and encrypt card data requiring use of a Pin number for access. The app also tracks points and offers discounts. Social Media Integration – Consumers tag certain items online and gain rewards as they recruit friends to register with and make purchases on specific websites. Consumers are rewarded via their Facebook likes and WordPress comments. PunchTab Integration – PunchTab is the world’s first, instant loyalty platform reaching over 20 million consumers across hundreds of sites that have integrated companys’ loyalty programs. With PunchTab, publishers, retailers, and application vendors deploy tightly integrated reward programs to their users in minutes with no development or marketing costs. Consumers can immediately authenticate through popular social networks and start earning loyalty points that are redeemable for exclusive offers, gift cards, and custom rewards. Digital Integration – Consumers earn rewards by sharing their information via Facebook, Twitter, digital and in-store scavenger hunts using a points system. It is important to realize that active customer engagement is the precursor to loyalty. Customers have to know they matter and believe that loyalty programs are not convoluted schemes to “win” trust but a way to show appreciation for their commitment to the company. 13
CUSTOMER SATISFACTION SURVEYS An organization must be well-versed in relationship management to attain long-term growth and profitability. Responding to your customers’ needs, following up after a sale, going the extra mile in rectifying a problem are simple steps that contribute to customer satisfaction. Customer satisfaction surveys assist management in developing strategies to achieve the all-important goal of gaining and retaining customers. Surveys play a key role in identifying opportunities for improvement. They can also pinpoint areas that can be leveraged to achieve business growth and expansion. Many factors are involved in orchestrating a customer satisfaction survey. It is truly a process. 14
CUSTOMER SATISFACTION SURVEYS The early stages of development are crucial and have to
surveys also offer anonymity increasing your chances
be constructed and well-thought out to be worth the time
of getting honest and frank input from respondents.
and effort. If the proper steps are followed, your survey can yield reliable and credible results which can be acted upon.
To facilitate the success of your customer satisfaction surveys, please use the following tips as a helpful guide:
To begin, you have to decide whether your survey will be administered online or offline. This determines the nuts and bolts of the survey from design and format to data collection and analysis. With the emergence of social media, eMarketing, mobile apps and overwhelming access to the internet—businesses are now looking to online surveys to judge performance.
• Define your goals to drive the execution and delivery of your survey. • Determine if your first survey will be a benchmarking survey. • Recruit the “right” target audience and segment accordingly. • Determine the survey time period.
There are many practical purposes of online surveys that benefit both the business and the customer. Online surveys make the collection of data analysis a more efficient and cost-effective process. Online survey tools offer analytics which can track activity in real-time and repeat deployments. These types of
• Structure questions that complement your data analysis. • Keep your survey short and simple to encourage survey completion. • Use constructive survey tools to capture your results facilitating data compilation and analysis. 15
THE END PROCESS After appropriate data analysis and results compi-
with your participants, it is crucial to devise a formal
lation are completed, you should ask the following
action plan and carry out the necessary deliverables
questions. Who will receive and use the results? How
regarding the identified improvement opportunities.
will they be used? Will the findings be shared with
This will validate your entire survey and show that you
your participants? Where will they be posted? These
do listen to the voice of your customers.
inquiries require your upmost consideration because they affect how your customers view your motivation
MWHPR offers a Customer Satisfaction Program
behind the survey. Generally, your customers want to
to enhance your customer retention efforts while
know their opinions matter and will be acted upon.
improving your products and services. Our CRS will work with you in designing and structuring your
When your survey findings are evaluated by the appro-
survey using the proper tools to capture and analyze
priate individuals within your organization and shared
survey findings.
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CUSTOMER SERVICE TRAINING Statistics show that roughly 90 percent of the time, customers will sever ties if they have an unpleasant customer experience. Customer Retention expert Michael Lowenstein, Vice President for loyalty management at Harris Interactive, states that employee engagement and loyalty have a direct relationship to customer satisfaction. “Employees directly contribute to both customer disappointment and delight. It is essential that companies have research and analysis methods that link employee performance to customer behavior so they can hire, train, recognize, and reward employees for adding value to customer relationships.� To initiate employees into the customer engagement process, they must be well-equipped with the proper tools to enhance the customer experience. Because customer service representatives are often the first line of customer contact, they must demonstrate proper telephone etiquette. By clarifying the proper way to answer an incoming call or end a call, employees add value and give the customer the incentive to call back should the need arise. This is why telephone training is crucial for customer retention. Employees are coached in handling various types of personalities such as disgruntled customers. The following provides varying forms of customer services training that are in practice today.
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TRAINING OPTIONS IN-HOUSE TRAINING
TRAINING SEMINARS
Customer service training conducted in-house can be
Similar to (external) professional training, seminars
customized to accommodate the immediate needs of
introduce participants to a wide range of ideas and view-
the company and compliment the corporate culture.
points from both the instructor and other participants.
Employees are more willing to participate in a familiar
Seminars also promote social interaction where best
atmosphere. Because an “outside” trainer,” is not
practices can be gleamed. However, they are usually not
involved, costs are relatively contained.
tailored to your organization’s goals and objectives.
(EXTERNAL) PROFESSIONAL TRAINING
VIDEO TRAINING
Employees are exposed to a multitude of customer
videos when the subject matter is more industry
service best practices from an outside source that has
specific. This training is cost-effective as one set of
varied experience in the subject matter. Participants may
videos can be used for any number of employees.
take instruction better from an outside source versus a
Video training also offers scheduling convenience.
representative within their own company. Because profes-
The drawback is that there is no social interaction
sional training can be costly, you may want to explore the
among participants and the instructor.
merits of in-house training then evaluate accordingly. 18
Organizations employ customer service training
ONLINE INSTRUCTION Online customer service training gives employees independent access to customer service training modules. For some time, online methods of training were criticized for their lack of two-way interaction. However, with the dawn of social media, two-way interactions are instantaneous. Companies must evaluate the type of customer service training that mirrors their corporate strategy and gauge the success rate. This will facilitate choosing the appropriate training curriculum that will have a positive impact on their retention efforts.
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CUSTOMER RETENTION RATE The customer retention rate enables clients to evaluate their relationship building efforts, lower cost, and maximize profitability. The retention rate also helps clients identify operational issues affecting their ability to attract and retain customers. The customer retention rate is considered a factor of frequency; the percentage of customers that subscribe to client products and services on a regular basis. While there is not one standard method of measurement, the most widely used calculation translates as the number of “repeat� customers over the total number of existing customers. While this formula applies in most cases, the CRS helps our clients decide what variables to include in the calculation such as customers on retainer, customers that sign on midyear, etc. The key is to analyze repeat customers over a long enough period of time to gain an accurate picture of your current retention practices. The majority of organizations review their retention rate on an annual basis. Once the retention rate is determined, clients can set appropriate benchmarks to gauge success and continually improve the process. Research suggests that a small 5 percent increase in customer retention can lead to a 75 percent increase in profits so it is critical for businesses to identify any obstacles that are adversely impacting business growth and implement tangible solutions.
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CUSTOMER RETENTION VALUE PROPOSITION The Customer Retention Specialist (CRS) will ensure our clients establish solid customer retention initiatives, increase retention rates, and develop mutually beneficial relationships. These strategies will create an environment where their customers are valued, appreciated, and add to the bottom-line long-term.
Carolyn Hartmann Customer Retention Specialist (713) 840-6392
For additional information about the MWHPR Customer Retention service, please contact Carolyn Hartmann at (713) 840-6392.
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PUBLIC RELATIONS
713.840.6392 Fax 832.698.2882 1 RIVERWAY, STE. 1700 | HOUSTON, TX 77056 info@mwhpublicrelations.com mwhpublicrelations.com 22