Customer retention strategies to grow your business

Customer retention has a strong psychological basis and it reflects how people think and feel. Our guest Dr Helen Watts (Deputy Head of Worcester Business School at the University of Worcester) did her PhD researching customer retention in fitness clubs. So while rational factors such as service quality and value-for-money are important, Helen's motivation was to look further at emotional factors influencing whether the customer leaves the business.

Organisations need to focus more on meeting customer needs on a personal level. In a diverse customer base, these needs and motivations will vary.

The Worcester Business School offers an Executive MBA suitable for business owners. It has marketing modules which cover customer retention and building long-term customer relationships.

Technology can help customer retention by identifying trends and patterns in large datasets, using machine learning. Large qualitative datasets can also be examined based on what customers have said.

Customer retention has touch points throughout the business, not just in marketing or sales. It's smart to have all these touch points identified, managed, and optimised.

Customer referrals is a strong KPI when it comes to customer retention. The ideal scenario is when the retained customer becomes a raving fan and advocate. To do this, have strategies where you offer them more. Always understand customer expectations, so you can meet or exceed them. Also understand why customers leave and have clear communications everyone is aware of.

Steve Ennis from Business Doctors is your host and the show was produced by Dave Bird in his Small Biz Digital Media studio.