retention presentation

2017

Corporate Presentation:Focus on Retention

CONFIDENTIAL AND PROPRIETARY. 2017 All rights reserved. Kemp Anderson Consulting, Inc.

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Your company core value and beliefs?• What are the COMPANY VALUES?

• What does the COMPANY BELIEVE IN?


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1. Can you “outsell” your cancels?2. Can you “retain” your customers while getting new ones?

HOW?3. What are the acceptable retention rates per service line?4. How can retention impact profit and growth?

http://www.monthlygiving.co.nz/keeping-your-supporters/


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Why is Customer Retention necessary?

• It costs much more to generate a new customer than to maintain an existing customer.• Losing customers can cripple your company.• A “SMALL” increase in your customer retention rate should

dramatically increase your profits…• The “Loyalty Effect” says that a 5% increase in customer retention

yields >25%+ increase in profit:First: Loyal customers are less expensive to serve than non-loyal customersSecond: Loyal customers are willing to pay more due to the relationship.Third: Loyal customers are willing to buy more services due to the trust.Fourth: Loyal customers recommend others to the service and this has the

highest close rate and retention rate.



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What is Customer Retention?

• Customer Retention is the maintenance of the patronage of people who have purchased a company’s goods or services once and the company gaining “repeat purchases” cycle after cycle. • Customer Retention occurs when a customer is “loyal” to a company,

brand, or to a specific product or service, expressing “long-term” commitment and “refusing” to purchase from competitors.



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How does Loyalty play a role in Retention?

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What is the “Preferred” state of Loyalty?

• Prefers to buy from you

• Positive word of mouth

• Buys multiple services• Spends more with the

company

• Repeat Customer• Multiple year relationships• Relationship is “routine”

• Feels part of the company

• Accepts price increases

• Ignores mistakes• Only buys from one

company• Goes out of the way to

tell others

• I’ll call you when I need you. • No Loyalty• Low Conversion• No multiple service buying• Just fix my problem

“Occasional Loyalty”

Emotional Loyalty

Attitudinal Loyalty

Behavioral Loyalty


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Customer Loyalty Measurement Framework

AdvocacyThe number and percent of new

customers.

Retention1. Churn Rates

2. Service Contract and Renewal Rates3. Use Metrics for

Retention4. Measure bundles

and retention/customer

Advocacy1. Overall Satisfaction

2. Likelihood to recommend

3. Level of trust4. Willing to forgive

5. Willing to consider….

Retention1. Likelihood to

Renew2. Likelihood to leave

Purchasing1. Likelihood to buy

multiple services2. Likelihood to

expand use

BehavioralEmotional

Obj

ectiv

eSu

bjec

tive

(Sur

vey

Q&

A)

Mea

sure

men

t App

roac

h

Loyalty Types



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3 Loyalty Landing Spots: Loyal Customers, Neutral Customers, Detractors…

Detractors

I will not buy anymore or renew I will tell others not to buy from you at all opportunities

NeutralI “might” continue to renew I will only buy what I need

LOYALI will recommend you to others I will buy more from you and renew


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Customer and Brand Relationship Model…

LoyalLove

Like

Learn about the Brand

Lack of Awareness

The c

usto

mer

s em

otion

al jo

urne

y Fanatical Protection

Affectionate &Passionate

Curious and Engaged

Aware and Familiar

Who are you?What do you do?Why you?

The Brand Objectives:

Advocate and Influence the markets.

Will deliver tailored community engagement.

May Help you build community awareness.

Somewhat aware of company and offerings

Who are you? Not a customer, No trust.


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The evolution of LOYALTY…

Suspect or Lead: a target to sell

Prospect: someone who

has taken action and you have

their information

Shopper: someone who buys from you one time, one

service

Customer: has purchased from you more than

once more than one service and or renews yearly

Member: has a sense of

belonging to your services and brand –

retains service

Advocate: introduces

other people to your brand and

services – actively referring

RAVING FAN: insists that

others use your services and does heavy

recruiting for you….

The business goal is To get advocates as customersThat become RAVING FANS…


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Why is Retention so important?


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Retention by the numbers…

Residential Pest >87%+

Commercial Pest >90%++

Lawn and Ornamental 70%-75%+

Termite >90%

A 5% increase in customer retention can increase a company’s profitability by

over 25%....


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Retention by the numbers….

Love your customers:Which is Better?

Retaining Current Customers or Getting New Customers?

68% of Customers LEAVE because they perceive that you are indifferent to them.

A 2% increase in customer retention has the same effect as decreasing costs by 10%.



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Retention by the numbers….

Roughly 80% of a brand’s future profits will come from 20% of existing customers. After YR1 Renewals.

Increasing customer retention rates by 5% can increase profit by up to 20%+.

The profitability of renewing an existing customer = most profitable customer type.

68% of customer leave brands because the customers perceives you are “indifferent” to them.


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Why do customers leave a company?

1% Customer

dies

3% Customer relocates

5% Customer

goes DIY or Other Srvc.

Change9%

Customer leaves for

Competitor and/or price

14% Customer is

unhappy with the service

68% Customer thinks you do not care about them

Controllable?

Controllable?

Controllable?


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Developing customer strategies to drive value

Retain Customers Reasons to stay: loyalty programs, discounts, great service!

Cross Sell #Services/Customer

Broaden the Communication and Relationship

Demographics – Acq. The right customer

Improve margins of value destroying customers

Provide me reasons to purchase more – bundles, packages

Understand me and make relevant competitive offers

Understand my needs: appropriate sales

Can I be satisfied more cost effectively? Route density, generics

Busi

ness

Cha

lleng

e

Cust

omer

Issu

e


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How can your company Increase Loyalty and Renewal Rates or

Retention?1. The Selling Process impacts renewal rates and loyalty….Set the proper

expectations at time of sale and sell with integrity.2. Communication and Scripting: describe what you are doing and why

and phone scripts and door scripts.3. Free add-on service enhancement: roll up the hose, bring in the trash

cans, sweep the porch, bring in the news paper.4. Time targets: how long to answer the phone, respond to service call,

wait for technician? 5. Apologize for any issue: service, sales, renewals. Own your mistakes…

“Either hold a rock concert or a ballet;But don’t hold a rock concert andAdvertise it as a ballet”…- Warren Buffett



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Customer retention strategy…1. Build Trust through Relationships:

a) Communicationb) Blogc) Chat, Tweet, +++

2. Implement customer feedback survey allowing customers to rate the experience. Professionalism, timeliness, value, and so on

3. Strong customer support system with an customer grievance system designed to avoid the negative experience and word of mouth. Chat, Email, Phone.

4. Personalize the experience. Track and reward referrals and send personalized thank you notes from the branch, technician, HQ.

5. Referral programs designed to reward existing customers and gain new one’s where everybody wins.

Define Attrition

Model Attrition

Build Offers

Retention Strategy

Campaign Design & Execution CUSTOMERS



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Successful Retention Strategies…• Set customer expectations – Set customer expectations early and a little lower than you can provide to eliminate

uncertainty about the level of your service and ensure you always deliver on your promises.• Become the customers’ trusted advisor – You need to be the expert in your particular field, so that you can gain

customers’ trust and build customer loyalty.• Use relationships to build trust – Build relationships with customers in a way that fosters trust. Do this through shared

values and fostering customer relationships.• Take a proactive approach to customer service – Implement anticipatory service so that you can eliminate problems

before they occur.• Use social media to build relationships – Use LinkedIn, Twitter, and Facebook to connect and communicate with

customers and give them a space for sharing experiences with your company, so they can become brand ambassadors.• Go the extra mile – Going above and beyond will build strong relationships with customers and build long-term loyalty

by paying attention to their needs and issues.• Make it personal – Personalized service improves customer experience and is something customers are expecting and

demanding. Make their experience personal to strengthen the bond with your brand.• Scripting – sales, phone center, service, management and all company positions. Manners…Thank you, Yes Sir, Yes

mam, I will follow up…own it.



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The #1 way you can improve retention…1. Listen to the customer needs1. Stay in front of the customer on a regular basis. Service, Emails, and so on.1. Keep the customers pulse on “service satisfaction”. Fix issues immediately. Service calls in 24 hours or less. 1. Don’t tell them what they need. Solve their issues first, then upsell.1. Care about the customer as a person not a sales generating object. Make it personal.1. Responsiveness.1. Make customer and employee retention critical.…….It’s a process….there is no magic bullet.



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5 Characteristics of an effective Customer Advocate….ARE YOU A CUSTOMER ADVOCATE?

1. THE HEART OF A CUSTOMER: Sees the company through the customers eyes. (Chuck Steinmetz)

2. MUDDY BOOTS: Has spent time in the trenches and knows how to get things done.

3. STREET CRED: Has the trust and respect of their peers.4. BEGGAR and BORROWER: Can operate on a slim budget if needed.

Resourceful. 5. TRUE GRIT, INTEGRITY and LEADERSHIP: Will put their career on the

line to win the important battles for the customers and company.



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Retaining the customer…• Make customer retention measurable and “ALL” Leadership

accountable to the metrics.• Always honor the agreed price.• Respect the customers time: being late and being early are both

unacceptable. • Customer surveys electronically and personally. Know what your

customers are saying about you.• Deliver all promises.



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Thank you…

retention presentation

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