It seems that there is too much emphasis on getting new customers rather than retaining current ones.
What has seemed to be an ongoing trend in the security industry, attrition rates continue to hold steady while residential net attrition increases to a four-year high. The battle between gaining new customers and retaining current ones remains. We will discuss the challenges companies face when dealing with attrition trends across the marketplace.
In layman’s terms, attrition is the measure of a customer’s dissatisfaction with or the need for the company’s system. It is important for a business to understand their attrition rate because it measures customer dissatisfaction. For the most part, the reasons for this dissatisfaction are company caused. Companies should manage their attrition tracking process to focus on, improve, and identify these causes within an organization.
There are several factors that have an influence on attrition trends in the marketplace. Customers that move to a new location is one of the leading causes for attrition increases within the industry. It is difficult for a company to retain a customer when that customer moves across the country. Companies that provide services online can manage this problem better than those who only provide services at a specific geographical location.
Another popular reason why companies are dealing with attrition increases is when customers are faced with financial difficulties. This often leads to them not making payments and are sent to collections. Since there can be many causes for attrition, companies need to focus not only on gaining new customers but on maintaining the overall satisfaction of their existing ones.
Better communication opens many doors to potential solutions that might not have been visible before. Getting to know your customer better can help tailor solutions that fit their needs. If a company discovers that their customers can no longer afford their services, they can apply discounts and promotions to make the product/service more affordable for these customers. Ultimately open communication allows companies to uncover problems as well as finding the solutions to fix them.
It is important to continue to add value for your customers. If a company can significantly show that their product has more value than competitors, retaining customers will not be difficult. Companies can add value by communicating with customers to discover underlying factors that cause attrition. Then they can work to find the solution that fits the customer’s needs.
The last suggestion is to stay up to date with the latest improvements in technology. Since technology is incorporating itself more and more into our everyday lives, each new advancement cannot be ignored. There are numerous platforms designed to create better ways of communicating. It is important that companies utilize these tools to discover what is causing their attrition to increase and to find the best solution for resolving them.
A great tool that utilizes communication to solve issues of attrition is ItsPayd. It allows for both businesses and customers to communicate and develop payment strategies that fit both their needs. It is an ideal solution for maintaining a company’s RMR while keeping customer satisfaction one of the highest priorities. It is the perfect tool to solve the battle between retention and acquisition.
For more information, please visit www.itspayd.com or call 855-999-PAYD (7293), email: kgreen@itspayd.com
