Once your customers decide to leave, it’s too late to try and retain them.
Attrition Risk? What can you do? Intervene!
Your ‘best’ and your ‘potentially best’ customers are already loyal and will stick with you. A large portion of your marketing dollars probably goes to influencing the behavior of these customers. They are responsive to your efforts to make them more profitable and to increase lifetime value. Whether you are implementing a loyalty program or not, your efforts are working with this segment of your overall customer population.
What about those customers who are at risk of leaving…those customers, who fall just below your potentially best customers? They are probably one of the largest segments of your overall customer base but for some reason, known or unknown, may choose to leave.
- Do you know who they are?
- Do they respond to traditional loyalty efforts?
- Are your competitors actively pursuing them?
- Are they on the fence? What would it take to influence them to stay?
Chances are, you may not have a program in place to address these at-risk customers.
Attrition–The Silent Enemy
Attrition is a numbers game – one that you want to win. The more customers you retain, the fewer you need to acquire. Keep in mind, customers like to win too. They need a compelling reason not to attrite with something that is meaningful and valuable to them—or they might shop around with your competitors.
In most industries, the cost of replacing a customer is many times greater than the cost of keeping an existing one. Many companies develop predictive attrition models but lack a cost-effective tool to intervene with rewards that are low-cost, high perceived value, immediate and automatic.
Loyalty programs may not always address this segment of at-risk customers. These customers respond to ‘always on’ rewards that are immediate and automatic and do not need to be earned. They love and appreciate surprise and delight programs and studies show that investing at this stage of the customer relationship will pay dividends down the road.
Loyalty: Pulling Rewards In
Loyalty programs tend to treat all customers the same and tend to not focus on the at-risk customers. Loyalty programs can be expensive and often difficult to measure. Traditional loyalty programs use a pull rewards model where the customers must earn and redeem. These programs are also often aimed at your best or most secure customers and don’t appeal to your at-risk customers. Loyalty programs “Pull” in the rewards.
Preemptive Retention: Pushing Rewards Out
Preemptive retention programs focus primarily on the at-risk customer segment. A reward is pushed to the customer as a service extension of your brand or member benefits. Preemptive retention creates loyalty and affinity with customers without telling them that it is loyalty and can be low-cost, easy to implement and ROI based.
- Extend the Customer Lifecycle with Perks that stick – Adding a perks program that is always-on keeps customers longer, opens the opportunity to influence them more often and turn them into better customers who can be ambassadors for your brand. You can then spend less on acquisition and more on retention. Customers are less likely to attrite because they would be losing something tangible, there is a real loss of valuable benefits or perks.
- An Extension of your Brand – The Entertainment® Rewards & Incentives Digital Savings Platform was designed for one purpose…to preemptively retain at-risk It is designed as a service extension of your brand or part of your suite of benefits if you are a membership organization or club. It has been designed to provide immediate access to a unique set of savings and discounts that provide valuable, tangible and easily accessible benefits to your at-risk customers. Here are a few reasons why the Entertainment® Digital Savings Platform can be a great way to turn your at-risk customers into your best customers:
- Our extensive savings is a powerful reason to stay
- We offer another channel to interact with your brand
- We provide a customer experience enhances your brand presence
- The service is given to them automatically, customers don’t need to sign up or enroll
- Savings benefits don’t need to be earned or redeemed
- Valuable perk programs increase the lifetime value of the customer
- Our platform can be a value-added channel to further communicate with your customers and influence their behavior, without contingent liability on the books!
- Your business will fend off competitors’ attempts to steal your customers
- You can apply analytics to learn more about your customers’ behavior
- Our platform increases ROI (it is measurable!)
Don’t let your at-risk customers leave you! Intervene with valuable, tangible perks with savings on dining, shopping, attractions, travel and more that keep them engaged with your brand all year long.
If you want more information on the Entertainment® Digital Platform as a benefit from your company contact us to learn more or call 800-450-8114.