Customer Communications Strategy: Retaining Customers In a Tough Economy
We’ve all heard that it’s far more expensive to bring on a new customer than to retain an existing one. Depending on your industry, the costs can vary widely. As our economy continues to struggle, competition is fierce and some customers are tempted to shop around. Holding on to profitable customers is the key to weathering an economic storm. While you’re thinking about how to keep customers satisfied, your competitors are actively working on luring them away. Now is the time to consider new ways to communicate with existing customers to meet their demands.
This Harvard Business Review blog reminds us that profitable, loyal customers are usually driven by your differentiation strategy. If you can find an aspect of your product or service that stands out from your closest competitors, your best customers will recognize the benefits and will be much less tempted to choose the low cost leader.
So, how can you differentiate from your top competitors to keep your best customers from switching?
Step 1: Stand out. The first step is to ensure that you have a solid differentiation strategy in place. What is the primary aspect of your product or service that makes you stand out from your closest competitors? Depending on your industry, this could be anything from price to customer service to patient care or product quality. Identify your top one or two areas of differentiation.
Step 2: Convince. This is where developing a creative customer communications strategy is crucial. It’s great if you recognize how you’re different but your customers are the ones who must be convinced. Continue to remind them that your product or service is different and therefore still the best solution to their problem. Stay out in front of competitors and on your customers’ minds with ongoing marketing communications. Use creative solutions like Transpromo messaging, which turns your existing billing statements into marketing tools. It’s a simple, cost-effective way to remind your customers of your additional products, services or discounts.
Step 3: Add value. In a tough economy, customer satisfaction is just as important as cash flow. Meet your customers’ unmet needs by offering them high-value communications. For example, offer electronic billing solutions or mobile communications such as text messaging or emails of important account reminders. This is yet another source of differentiation and your mailing costs will be significantly reduced. Provide mobile account access to let your customers pay their bills instantly. This meets their desire for mobile technology and dramatically improves your cash flow – a win-win in a down economy!
Step 4: Learn. Contact Tom Rich or Mark Henry to learn more about saving money while enhancing customer experience!