Wednesday, January 15, 2014

Customer retention - It's not a dog eat dog world!

Often start-ups feel that one mistake/bad experience. is enough to send the customer back to choosing another party for carrying out a particular service, or providing a particular product.Customers are not waiting to switch to the next vendor at a moment's notice. Vendor selection is also a cost to any business. The cost includes, creating a requirements list, choosing one among many, explaining in detail the task that has to be carried out, spending time answering queries and finally negotiating.

So if your start up makes a mistake (or doesn't provide a product/service that's up to the mark), the following options should be considered in descending forms of urgency

1. Replace (if not rectify) the moment you know the customer maybe right
Often, the time of deployment of your solution maybe critical to a customer's service delivery. The customer's tolerance level for crap at this point of time is the lowest. The customer usually advices you to take an alternate course of action, which you (or your team should be empowered to) must take a call on. Post the incident, involve the customer in a discussion as to why you failed. Customers appreciate that.

2. Raise flags with a what-why-what next plan
What Happened? Why it happened? What next should we do to fix it? These are the 3 questions that a customer is concerned about. The customer doesn't give two hoots about 'how it could not have happened'.

3. Call/meet client when you know something has gone horribly wrong.
If your startup processes taxes efficiently, or if your a gifting company - chances are you notice a serious issue before your customers do. In this case, don't wait for the crisis to occur. Figure out the what-why-what next , and then be proactive and visit the customer to inform them. 

Customers will turn away, not because you make mistakes, but if you do nothing about them.

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