What is the Value of Customer Retention?

Understand the value of customer retention

Many companies realize that customer retention is extremely important. They recognize that losing valued, loyal customers is bad for the company’s long term revenue potential and overall success. Even though this is understood on a basic level, few companies – especially those companies providing a service – seem to misunderstand what losing a single customer can mean to their business.

 

Example:  Sandra took her car to an auto maintenance facility for trouble with her oil gauge. Sandra knows very little about cars, so she decided it would be wise to have her car towed to the closest auto maintenance facility to be serviced. The mechanic on duty treated Sandra with absolute condescension.  He acted as if Sandra should know much more about cars and how to check her own oil. Upon completion of service, the mechanic charged Sandra for 2 hours of service even though Sandra had only waited an hour for her oil to be checked and changed.  It was obviously a bad experience for Sandra, and she had no intention of returning to that auto maintenance facility for future services, nor would she recommend their services to friends and family.

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3 Customer Loyalty Survey Mistakes

As we defined in yesterday’s blog post, Customer Satisfaction vs. Customer Loyalty, customer loyalty consists of two factors – loyalty behavior and loyalty attitudes. Loyalty behavior (or customer retention) is when customers make repeat purchases of current brands, rather than buy from competitor brands. And, loyalty attitudes are opinions and feelings about products, services, brands, or businesses that are associated with repeat purchases.

Customer loyalty is a critical component of maintaining a successful, long-term business. Customers that are vigilant users of your products or services are more likely to be repeat customers and recommend your business to others – keeping the business relationship alive and away from your competition.

Customer loyalty programs can be implemented into your overall business plan and be used to expand your business. Consider using online survey software to create customer loyalty surveys. Many experts believe that online customer loyalty surveys are a strong research method. By allowing customers to provide feedback and be more involved in the company experience, your business is building a stronger loyalty base and bond with your customers. Implementing a regular customer loyalty survey may cause a noticeable positive shift in your company’s overall loyalty. Continue reading

Factors to Consider when Creating Customer Surveys

Many, if not all, industries use customer satisfaction surveys to gather customer feedback. Survey data from customers is used to plan, formulate strategic business strategies and solutions, and make informed business decisions, which improve overall performance. At times, it can be a difficult and laborious task to develop and execute an efficient process of surveying large numbers of customers in a way that produces meaningful results. To get the most use out of your survey research, prior to administering a customer satisfaction survey that targets a sample of customers, take the following factors into consideration:  Continue reading

Allow Respondents to Rank or Order Their Preferences

Many questions in customer satisfaction surveys ask respondents to rank certain aspects of their experience. Ranking questions ask respondents to rank or order a set of options. Continue reading

Rating Scales for Satisfaction Survey Questionnaires

When designing a satisfaction survey, it is highly like you will need to implement rating scales in your questionnaire.  Ratings are subjective assessments that use a personal set of standards to evaluate your product or service.  Rating scale questions are used in Satisfaction Surveys of all types such as: Customer Satisfaction Surveys, Employee Satisfaction Surveys, Healthcare or Patient Satisfaction Surveys, and Educational Surveys such as Student Evaluations and Course Evaluations.  Continue reading

Survey Research Briefs – Writing a Research Brief for a Successful Survey

A great research brief begins with clear objectives and is an essential first step in any survey.  A well thought out plan will enable you to prioritize your objective and to develop the right questions to gain the information you need for your market research.

The first step in developing your brief would be to answer these questions: Continue reading