Developing a Customer Save Program for Your Business
by Hostway
An important part of any business is minimizing customer defections. It’s far
cheaper to keep customers than it is to get new ones, so keeping your current
customers happy is critical to your success. But, no matter how hard you try,
some will want to cancel your service. Having a simple save or win-back protocol
in place can help you salvage customers when the time comes.
Friction
The first step in saving a customer is knowing they need to be saved. Be sure
you put some friction in the system so they can’t leave with the simple push of
a button. On the flip side, you don’t want to be the old AOL, the Hotel
California of service providers, where there’s no way out either. Just give
yourself a chance to save the customer by having them call you to terminate
service.
Customer Service
In a small business, owners and employees usually wear many hats. If you
don’t have a dedicated customer service rep, take the time to train yourself or
an employee in the art of customer service. The keys are the ability to listen,
patience and a positive attitude.
The Call
When a customer calls and wants to cancel, they’re unhappy. Let them vent.
Listen to what they have to say. Be sure you don’t interrupt and don’t argue the
issues. Once they’ve finished, tell them you’re sorry they’re having a problem
and you’ll be happy to help them resolve it.
Paraphrase the problem and repeat it back to the customer. This assures them
that you really do understand their issue.
Find out why they became a customer in the first place. Understanding why
they valued your business will help you make them see that value again.
Resolution
Ask them what you can do to make them happy. Say something like, “We value
you as a customer. What can we do to resolve this and keep you with company X?”
This is the key to any negotiation; make the other party put up the first offer.
You might be surprised at how little they really want.
When you counter-offer, make sure it’s commensurate with the problem. First,
make sure that the customer understands the full value of your service. They
might be missing out on a key value that could win them back without costing you
anything.
Is there another product or service that would better suit their needs? Is
there a cheaper, streamlined offering that would satisfy them? If the issue is
bad enough, a discount (i.e., one month free) might be in order.
If you find a resolution that will satisfy the customer, take care of it
quickly and courteously. If they just can’t be satisfied, use the opportunity to
get feedback on why they’re unhappy and take care of the cancellation request
promptly. Whether you save them or not, leave the customer happy with your
service. A happy defector is more likely to come back to the fold than an angry
one.
Hostway Corporation helps small- and medium-sized businesses increase sales with innovative
Web hosting packages that include an easy-to-use Web site builder, a built-in mechanism for driving traffic and an
email marketing platform. Founded in 1998, the company currently serves more than 600,000 customers across the globe and operates over 250,000 square feet of state-of-the-art data centers with a direct presence in 13 countries, 17 worldwide operation centers and more than 700 employees.
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