Friend or Client OR Both?
Posted on 18 August, 2015
Retention marketers know there is a difference between loyalty and retention. Without a proper understanding of the two concepts, it’s not possible to foster valued customers. A business that solely wants to keep customers at all costs is not effectively managing their resources. It’s more important to use the concepts of loyalty and retention to ensure customers are happy with current product and service offerings. A company must be able to identify when a customer is not a good fit and be willing to cut the cord.
Loyalty Means Growth
Loyal customers conduct themselves in a way that produces positive outcomes for themselves and the business. Loyalty programs are a good example of systems that can transform how a customer interacts. When a customer takes part in a loyalty program, they benefit in a positive way by receiving incentives and special offers. Loyalty programs encourage habits that benefit the customer and business.
Retention Means Decline
Retention is commonly thought of as the process of keeping a customer. While this is a part of retention, a company that aims to keep a customer that isn’t a good fit is shooting itself in the foot. Many companies lower prices in an effort to keep a customer. This rarely works long-term because the customer languishingly stays; even free services or products won’t keep them onboard. Customers must value the company’s products and services to reap long-lasting benefits. Education, evaluation, and fit are the main focus of retention marketing. Provide resources that remind the customer the value of your service. Help the customer evaluate the service to be sure that this relationship is a good fit.
Use Both Marketing Campaigns
Loyalty and retention campaigns combined ensure the customer keeps coming back and has a reason to do so. Do not miss an important opportunity to communicate with customers. Implementing both campaigns will promote long lasting relationships and result in greater returns. Omega Management Group offers solutions to your customer care strategies. Contact us today at 1-800-711-5196 to learn more.
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