Retention Telemarketing
By: Mark Swanson
Retention Telemarketing
In today’s direct marketing world it has become common knowledge that retaining a customer is simply more cost effective than acquiring a brand new customer. The outbound telemarketing services world can be an extremely effective tool for customer retention; in fact, it is one of the best, if not the best way to retain customers. Outbound telemarketing services offer marketers the chance to retain customers with a service oriented approach as well as an extremely customized renewal offer. Retention telemarketing has become one of the most common uses for outbound telemarketing services because of the cost effective nature of the effort as well as the high response rate. However, even with all of the success of retention telemarketing, some programs have been unsuccessful for a variety of reasons. There are ways to ensure that your retention program will be both effective and profitable.
Understanding Data
The first way to really make sure that retention is possible is to know your customers and their buying habits. Analyze the data to find out where they are dropping out in the customer life cycle and what attributes some of these customers share. Working with much of this data can significantly impact the results of a retention program and change the focus of the provided offer. Some of the similarities in data can result in a more customer focused offer or a solution that can retain more prospects then simply providing a lower price. The ultimate concern here is to understand the customer information as well as the most effect offer or offer combination in order to retain the customer.
Avoid Mix Offerings
Any experienced marketer is most likely testing several offers as well as attempting to retain customers through several channels. This is certainly a great way to ensure customer contact; however, it can be problem if customers start receiving mixed offerings. When running the telemarketing program a best practice is to allow the telemarketing agent to offer a lower priced selection or to allow the agent several price options. The rule of thumb in direct marketing is to close the sale now because closing it later rarely happens. Telemarketing services can successes in the retention process if they are given the right tool and offer to work with. Also, if running a telemarketing program along a direct mail or any other retention effort coordinating the offer to the list is always the best way to ensure success.
Understanding the Markets
B2B
When running B2B retention programs one thing that can often be a factor is the multiple decision makers involved in the retaining the product or service. Outbound telemarketing calls can be used to identify these issues through predefined questions that can capture the data needed to offer them a more targeted solution. More often than one might expect, price is not the only factor. In fact many customers may even use pricing as a deterrent to addressing the really issue they dropped out of the account.
B2C
The B2C market can be completely different. In reality, these are the easiest to really work in a good retention program for. The customer centered focus that has emerged in the marketing industry coupled with the strong presence of the internet has really allowed for customers to become more fickle about who they deal with. This fact alone makes the need for a good retention program even more convincing.
These retention programs should revolve around customers that have recently dropped out or are in danger of leaving. Segmenting this list then further to try and reach customers with an offer catered to their buying habits can help convert them. Additionally, using your telemarketing program to learn more about why they are dropping out is vital to understanding your customer database. Telemarketing can be one of the most effective programs to improve a database.
Understand Loyalty Campaigns
It is easy to get lost in trying to retain fallout or at risk customers; however, retention can be equally effective as a loyalty campaign as well. These campaigns can not only provide some insight into what the customer is thinking but it provides companies with the opportunity to cross sell or introduce new products and services. Telemarketing services campaigns that involve loyalty programs are great ways to keep customer data refreshed, pull opinions from existing customers, correct any misgivings that a customer may have perceived to have happened since the company’s last connection with them, and ultimately offer a new product or service to meet needs. These Loyalty program reward customers for simply being customers and really offers a chance to ingrain them further in a company’s product line. Using outbound telemarketing services to reach out to these customers can be exceptionally valuable to the customer lifecycle longevity.
Continuity
Continuity outbound telemarketing services, have become a goldmine for clients who have multiple products and a pool of current customers that are part of a continuity program already with the company. Using a telemarketing service provider to call these customers back and cross sell them with another continuity program another similar product is a huge sales converter. In addition, it offers the chance to express general interest in the continuity offer that they are already using and their satisfaction, combined with an up sell or a cross sale.
Membership
Using outbound telemarketing services to retain members is one of the most highly successful ways to retain a customer. More often than not recently lost customers can be retained for less than $20 through outbound telemarketing services, and telemarketing services have the highest response rate for any form of direct marketing communication. Savvy direct marketing experts will often use their telemarketing services campaign to offer membership club programs that have recently expired an up sell to gain an even higher profit out of the same call. Using a telemarketing services agent that has been properly trained, telemarketing services uses can often get these agents to successfully sell customers on an up sell, or convince customers that are canceling their membership to stay onboard even it if means offering a down sell. No other form of direct marketing can offer this flexibility, which is why membership groups heavily utilize telemarketing services for their membership retention campaigns.
Ultimately, using telemarketing services to reach out to customers who are current members or past customer to retain them is one of the most effective uses for not only the telemarketing services channel but for any form of direct marketing. Visit teleresources.net for more information on telemarketing.