Losing a customer is easy. Modern customers are not easy to please and a less forgiving person would call them fickle. Unless you own a total monopoly in a sector, they can just as easily find someone else who will make them happy. Countless business owners find this out sooner or later – much to their great frustration.
Customer retention is crucial if you wish to grow your business. As we all know, it is more expensive to sign up a new customer compared to retaining a customer. Even if you only factor in the marketing costs, you can see that this is an accurate statement. The number varies greatly from business to business but on average, it is 6 times more expensive for you to sign a new client. This is the kind of money that should have been used to bring in new business and not wasted by replacing the customers who left for greener pastures.
As you can imagine, the bulk of customer complaints begins and ends with the attitude of the employees with whom they have to deal. Some of the major reasons why a customer will sign up with your competition are:
- Lack of transparency and communication,
- Missed deadlines,
- Lax attitude in employees.
How Policy and Procedure Can Retain Customers
A business is comprised of a team. How will a team ever function properly if the employees are not on the same page? This is why you need a clearly defined policy written by management and communicated to your staff. Everyone should know where the company is heading in terms of meeting its objectives. A well-written policy has a clearly defined purpose. This purpose must always align to the company’s objectives, mission, and values. If this is communicated to your workforce, kept up to date, and your staff applies the policy and procedure as intended, then you will have an optimised company – self-sufficient and effective. This is the basis of customer retention and a solid foundation to continue building your company’s customer satisfaction.
Do you need help drafting a policy for your business? Get in touch with my team by using the details on the Contact Us page. You can also share this article by using the buttons below.