Plugging the Leak


Often even with some of the best plans customers go elsewhere for whatever reason. Generally it’s a perceived feeling that you, your company or a sales rep from your company prevented them from feeling like a valued customer whether intentional, unintentional or entirely false, it does happen. As much as the usual goal is to point fingers and blame specific handlers of the account, you’re much better off learning from that mistake and choosing a CRM that fits your business profile. CRMs can be made and adjusted so that they will give a variety of different alarms that allow you and your sales reps to know when a customer is intending to leave, or just in general unhappy. Keyword filters are a popular method as well as monitoring social media and flagging specific conversations or posts. By doing so you’re able to see a trend forming, an increasingly delayed product or a customer who is growing more hostile with each correspondence suggests something is wrong and it should be highlighted as a problem to fix.

Always assume that the problem is fixable, something that your company can do to make the situation better and thus, make the customer(s) happy. Heading into it with such a belief will allow you to better digest the problem and come up with a solution. CRMs are an excellent way to increase profit by not only preventing customer loss but also to reverse that trend and draw in more leads and in turn more profits as sales close. You’ll need to set up a CRM specifically however, that sets up alarms and pushes them out to the pertinent sales rep in charge of handling that account or acting as a liaison. Whichever the case, you need to be certain that your CRM is properly functioning in order to keep your customer retention numbers high and prevent them from taking their money and connections elsewhere.

The most pertinent form of alerts are those when a customer has dramatically altered their orders downward. Meaning, if you’ve had a steady selection of customers and after a few months and several steady orders, they suddenly drop their order amount or gradually taper it off over the course of the year you need to investigate that. A CRM can raise an alert to the people handling the account and they can comb over the records dating back to when the odd behavior started. Often this is a result of a customer tapering their supply with your company while increasing their purchases at another company. Using a CRM to find these connections can inform you which company and even why the customer is leaving. A quick polling of your prices and statistics from the period just before and just after the change in behavior is a good indicator of what the reasoning was. Odds are pretty good that the reason is related to price, availability and communication. As a result of increased price, either product or shipping, and decrease in availability you might unintentionally make your customer start looking elsewhere for the same or similar products. A quick fix is to offer a “loyalty discount” which many companies have used to great extent.

While particularly useful for older customers who have been buying with your company longer, you reward them with discounts that just happen to be around the same price as your competitor, or bundle those products with additional services or support. By doing so you increase the perceived value, your customer feels like they are truly valued at your company and they’ll take most of their business back to your company and all for a little extra work on your end. This good will often pay off, resulting in an average of an 18% referral of another customer from the customer that initially was going to take their business elsewhere. By setting up your CRM to monitor these fluctuations you’re able to alert the account supervisors and sales reps that get in touch with the customers and in doing so better retain your customer base. However, keeping your customers happy through these alerts also allows you to grow your base simply by word of mouth, which remains to be the best way to get, and retain customers.

After the Leak is Plugged


After you’ve stopped your customers from leaving, through the use of inventive and proper CRM use you’ll need to do something to grow your customer base, chase more leads and close more sales. This is a primary opportunity for CRM to turn your business around and turn a negative into a positive purely through the use of CRM. Now that you’ve got your customers back and you’ve retained them, you need to go back to working on growing your consumer base, increasing your sell rating and growing the number of loyal customers who will in turn spread their knowledge of your company to others. It’s through this word of mouth that your business is likely to grow the fastest and strongest initially. It’s a good idea to have a stellar reputation, because a reputation will precede any company that makes a claim about durability or service in their products.

There will always be another company or contractor that can sell or do things cheaper than you, engaging in a price war benefits nobody, surely not yourself and eventually even the consumers are hurt as they buy cheaper and cheaper made products that simply break, making them buy more. This gives the cheaper companies more money and yet the customers are more upset than ever before, yet they don’t see the reality for what it is. However, bundling excellent service or great durability of a product is important to impart lasting value to your brand and to your company. By using a CRM to prevent customer’s leaving you can employ those very same tactics to draw in more customers so that you’re able to grow your consumer base and use the lessons learned to incorporate an ever growing population of customers.

Article By: Penguin Writer

Commerce | Business

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