September 21, 2018
It’s common knowledge in business that it’s 5 times more expensive to acquire new customers than to retain your existing customers. Repeat customers are worth up to 10 times as much as their original purchase, and 61% of SMBs report that more than half of their business comes from repeat customers.
While repeat customers are one of the most valuable assets to your business, the truth is sometimes customers stop coming in. 67% of customers say they stop going to a business after a poor customer service experience.
Other customers may stop coming in because they found another brand that offers a better customer experience. This is a real threat considering 86% of consumers are willing to pay up to 25% more for a better customer experience.
Sometimes customers stop visiting your business simply because you haven’t engaged them enough with the right offers.
It’s a huge bummer for any business to lose customers. But the good news is you have the tools to improve your customers’ experience, reduce churn rates, and win back lost customers.
In this post, we’ll share how you can identify when you’re about to lose a customer and five ways to win them back.
1. Capture Customer Satisfaction Feedback with NPS
What’s a Net Promoter Score (NPS)? We’re glad you asked because it’s one of the top ways to gauge how satisfied your customers are with the service your business provides.
NPS is a simple metric that tells you how likely a customer is to recommend your product or services to a friend or family member. Thanx helps you assess this by sending out a short 1-question survey that asks “On a scale of 1-10, how likely are you to recommend us to your friends?” after a customer makes a purchase at one of your locations.
Customers that respond with a 9 or 10 are considered Promoters. If you’re receiving consistent lower ratings, it quickly indicates you may have a problem with your customer service or product that you need to address.
Thanx sends and captures NPS responses for you making it super easy to discover how customers feel about your business. We also provide an at-a-glance dashboard so you can quickly see trends in customer satisfaction over time, in each of your locations, as well as industry benchmarks.
2. Respond Personally to Customer Feedback
Thanx makes it super efficient to respond to valuable customer feedback in real-time as we provide automatic alerts for low scores or negative feedback. This enables you to respond in a timely manner and keep negative, business-impacting feedback and reviews from third-party sites like Yelp. It also allows you the opportunity to respond personally to the customer and depending on how valuable they are to your business you may select to send them an offer or a discount or just a note to say you’ve received their feedback and want to make things right.
Responding to feedback can have a positive impact on your bottom line revenue, too. We’ve seen our merchants gain 14%-21% in incremental revenue by personally and privately responding to feedback.
3. Use a Winback Campaign
Thanx merchants that use win back campaigns are able to get a 6X ROI.
Our platform automatically captures customer purchase data, identifies customer churn, and automatically reach out to customers with win back offers. You can think of it as your staff that never sleeps.
Here’s how it works: Our platform can detect lapses in customer visit frequency over time. When we detect customers that haven’t been in within a certain amount of time, we will automatically generate a win back offer and send it to customers that are trailing off. Customers receive these win back offers, come back, redeem their offer, and are reactivated.
It’s worthy to note Winback Campaigns are proven to drive 49% of lapsed customers back.
4. Measure up to the Competition
If you’re looking to engage your customers, it’s vital to understand how you compare to your competitors.
Thanx understands how important it is to get data-driven insights into how your business is performing in relation to competitors. That’s why we offer in-depth competitor analysis you can easily see in your merchant dashboard.
We’ll show you things like how much your customers spend at your locations vs how much they spend at your competitors’ locations, how frequently your customers visit your business as opposed to a competitor, and how your business compares in relation to the rest of the market.
These types of insights help you identify what you are doing right and where you may need to make improvements.
When you stay on top of your competitors, you can rest assured your customers will stick with the better option—your business.
5. Engage Customers to Avoid Losing Them
The best way to keep your customers active is to engage them with personalized messages and offers before they go MIA. How do you do this? Cast off old-school punch card loyalty programs and embrace modern day data-driven customer engagement and loyalty. Traditional loyalty programs don’t measure and provide you real revenue and ROI. They simply erode margins and offer the same discount-driven offers to everyone promoting promiscuous customer behavior that doesn’t breed loyalty.
With Smart Offers from Thanx, you can track the impact of campaigns from the beginning to end, so you can see the real ROI of your efforts and reward your best customers with personal and targeted offers and rewards to grow your business.
Thanx has seen redemption rates of up to 75% with Smart Offers, and so can you.
It’s now easy to capture customer feedback, respond to customers in real time, outshine the competition, and launch appropriate win back campaigns so you can keep your customers engaged, happy, and coming back making churn a thing of the past.