Best Ways to Improve Customer Loyalty and Retention

By now, you might probably know that the key to tow truck business growth is not just about bringing in new customers, it involves much more. It is about retaining the customers you have. Research has shown that increasing the customer retention rate by just 5 percent leads to a profit increase of up to 95 percent. Acquiring new customers can be 5 to 25 percent more expensive than retaining existing ones. These stats show how it so imperative to invest a lot of time and resources in retaining existing customers than retaining new ones.

Here are some important strategies

Invest in customer service tools

If you want to create delightful customer experiences, your team needs to be well-equipped to do the same. If you can have the right tools at your disposal will help in creating convenience for your employees and customers as well. You can make use of knowledge management software to keep your teams connected during urgent and complicated customer issues. If a sales rep needs to contact a service agent, they can ping them through the software and communicate in real-time. They will not need to put a customer on hold or set up an additional meeting just to troubleshoot the same thing.

Use reciprocity to increase loyalty

Reciprocity is a social aspect that has been found to increase a lot of loyalty. Any simple act of kindness will create a feeling of obligation in the person who wants to repay the kindness. Ensure you include elements of surprise while delivering to a customer. Surprise reciprocity is a surprise gift or gesture. An example would be sending customers free swags or tickets, without even letting them know you had intentions to do the same.  Trumpeted reciprocity is when the person giving or doing something beneficial does so in a way that reveals they are going above and beyond.

Exceed Expectations

It is one thing to satisfy a customer and it is another to satisfy them. You need to create the kind of customer delight that customers all crave. You need to understand what your customers are expecting from you. What do customers expect from the industry you are involved in? What steps are your competitors setting? You need to understand how you can meet those expectations and work towards ensuring they are all exceeded. Customers will always be forming opinions and you must ensure you listen to their concerns.

Keep communication record

If you have been interacting with a customer before, you need to ensure you keep a record of past problems. Your company culture, leadership, and business practices will all contribute to customer retention. One way to ensure you prevent future problems is to adopt a CRM system where you can store previous notes and communication, and pull them whenever you want to interact with a customer. If you can have detailed notes and a complete history of the relationship and interactions recorded, someone new handling the customer can pull out the conversation and handle the customer without many problems

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