Eight Actions to Increase Customer Retention

Every interaction you have with customers-be it over the phone, through a letter or via the Internet-is a chance to improve your relationship with customers. Here are eight ways to boost customer retention.

1. Answer calls, e-mails and letters enthusiastically and appropriately. Use positive responses that will make your company stand out in the customer's mind. Use welcoming phrases like: "Thanks for calling," and "What can I do to help you?"
2. Use the customer's name naturally. If your system identifies the caller, answer with: "Good morning, Mr. Smith, what can I do for you?" But don't use the customer's first name unless they say it's OK.
3. Show confidence in your company by sharing your knowledge of its products and services. Customers appreciate it when you can answer their questions quickly, concisely and accurately. The more knowledge you can exhibit, the more customers will come to you for solutions.
4. Know when to bend the rules. Make sure you know when it's appropriate to depart from standard procedure. Most customers don't really want to talk to a manager, they just want to talk with someone who can meet their needs.
5. Report endangered customers immediately. If you think a customer may defect due to a service failure or another reason, inform your supervisor promptly, so they can take steps to try to repair the relationship.
6. Be aware of negative phrases like "You'll have to..." and "You told us to..." Rephrase them and say "If you'll just..." and "It was our understanding..." They leave the customer with a much better feeling about your company.
7. Show team spirit. If you need to transfer a call, stay on the line until you're sure contact is made. Always make positive references to others in your company.
8. Close calls, e-mails and letters on a positive note. For a memorable close, use the customer's name and tie it to your company's name: "Thank you for calling ABC Company, Mr. Smith!"