Focusing on churn alone can lead companies to underestimate the negative impact of a bad customer experience. Turnover isn’t the only way a customer’s experience costs your company money.
I asked who was responsible for customer retention in his company. He looked startled by the question and replied, “Customer retention is everybody’s job!”
The idea that “everybody” is responsible for customer retention is a common belief, yet it’s fundamentally flawed. Worse, it can actually contribute to customer turnover.
So you want to prevent customer churn? Consider these scenarios: Scenario#1 Picture a high-end jewelry store. Fine jewelry isn’t purchased on any regular schedule, so the business doesn’t always know when a customer wants to make a new purchase. Let’s assume this company offers an incredible in-store experience. They send occasional emails and mailers about …
Customer Loyalty is something Starbucks pays a lot of attention to, and so do I. As a loyal customer and member of their rewards program, I’ve always gotten a birthday giveaway from Starbucks every January (my birthday month). I love getting my annual freebie! Even if I’m not in a Starbucks groove of regular coffee drinking, come January, I’m psyched. I know I have a month to enjoy my birthday latte. For days, if not weeks, Starbucks will be on my radar screen until I get to the store to claim my freebie. I make a point of going, and every time I think to myself, “classy move, Starbucks.”