The goal of management in any business is finding ways to create customers. This means sound policies for developing relationships not just with existing customers, but with as many potential customers as possible. Here are four ways that management can promote customer acquisition and retention.
1. Customer Acquisition Cost (CAC)
Many companies tend to focus resources on driving more sales without stopping to calculate how much it’s actually costing them. Cutting promotional costs is just as important to sustaining profits as finding new customers. Track every dollar being spent on sales and marketing, and at the end of the month divide this figure by how many new customers you’ve acquired. This is your CAC. Look at what these customers are actually spending. It’s important that you operate at a low CAC.
2. Customer Service Training
The one asset that keeps customers coming back, even more than great deals or speedy shipping, is a high level of customer service. To accomplish this, your support team needs to be well-versed in interactive skills, not memorizing scripts or quoting company policies. A warm, positive tone and empathy for the customer’s dilemma are the hallmarks of good service, as emotional intelligence is a huge component of customer service and leadership. Don’t assume that any competent agent has sufficient skills; helping them build relationships is critical to your business.
3. Customer Service Technology
Today’s customer support needs to be empowered with the best tools. Multiple channels for more contacts, such as chat, email, and text, are essential to virtual consumers. Customer relationship management (CRM) software allows agents to bring up a customer’s information and history quickly for more effective conversations. Data analytics, dashboards, and fast reporting can also help in monitoring and improvement. Both agents and their managers need efficient tools to keep pace.
4. Give Your Customers What They Want
Customer acquisition can cost four to eight times as much as customer retention. You can best stimulate repeat business by creating loyalty among your customers. The way to make this happen is to ensure that you’re living up to their expectations. This requires gathering feedback and establishing metrics to judge your own performance. You might want to consider hiring management professionals who have finish a degree, such as an online MBA program. This prepares business people for leadership positions and for understanding customers through digital activity.
While sales, marketing, and customer support put in most of the time, management must still coordinate these efforts into a successful plan. The aim of your plan is not only to acquire customers, but to keep them.
Author: Anica Oaks is a professional content and copywriter from San Francisco, California. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. You can connect with Anica here. Anica suggests you check out the online MBA programs offered by Pepperdine University.