Subscription and recurring billing companies want to keep customers as long as possible. These types of companies can make huge profit gains from lengthening the time their customers stay paying customers, even by just a month or two. Therefore, it is imperative to know how and what to say to customers to make them choose to continue being a paying customer as long as possible.
Developing customer retention strategies is not a guessing game – your customer retention strategies should be developed through a method of testing and analyzing those test results. Not taking the time to understand your customer retention strategies’ impacts on every level of your business leaves you with very little knowledge to continue the process of effectively improving your company.
When brainstorming ideas for improving customer retention, offering discounts through email, coupons, etc. is a common strategy. But what about offering those discounted promotions when customers actively contact your company through phone, email or the web? Instead of peppering your customers with emails they can delete and coupons they can throw away, offer your promotions when customers are already taking the time to interact with your company.
This is especially true if the customer is attempting to cancel their subscription with your company. Try to get cancelling customers to stay subscribed at a discounted rate. The worst answer they can give is no, in which case they will simply unsubscribe like they had originally intended. However, if they say yes, whatever discounted rate they accept is money in your pocket that would otherwise not be there. Finding the discount most cancelling customers accept is where the money is at – money you didn’t even know existed!
Customer retention strategies should be more precise than the commonplace coupons we are barraged with daily. Utilizing customer service channels to extend the subscription life of your customers is a much more specific way to connect with your customers. Identify why they are contacting your business, make them an offer in conjunction with their needs, and watch your profits increase along with your customers’ satisfaction.