“The current economic climate is causing customers to be more selective about where and with which businesses they spend their money. As a result, many companies are losing customers at a rapid rate,” said Kyle La Malfa, Allegiance Best Practices manager and loyalty expert. “However, many companies focus so much on acquiring new customers that they not only fail to do what’s necessary to keep their existing customers, but also to take those relationships to a higher level.”
It is estimated that the average business today loses between 10 to 30 percent of its customers annually. To address this, some businesses have as many as 35 or more tools in place to listen to the voice of the customer (VOC). However, these tools frequently duplicate efforts and constitute a tremendous amount of time and resources. For that reason, companies are increasingly turning to systems such as the Allegiance Engage Enterprise Feedback Management (EFM) platform, a Web-based system that allows them to collect customer feedback through multiple channels (email, Web, print, phone) into a central database for analysis and action.
Once a comprehensive feedback system is in place, companies should focus on these areas to identify ways to improve customer retention:
-
The type of customer feedback and the percentage in each feedback category (complaints, suggestions, comments, concerns)
-
The channel most used by customers to provide feedback (Web, phone, in-person, etc.)
-
The underlying drivers of customer loyalty and engagement, such as their emotional bond to the business
-
The current strength and depth of customer loyalty and engagement
-
The trends in customer loyalty and engagement levels over time
-
The opportunities for new revenue and growth
The white paper includes detailed information on how to build more profitable customer relationships.
Retaining Customers in Tough Economic Times – New Allegiance White Paper