Customer Retention Formula

Serve + Engage + Relate + Verify = S.E.R.V.

Customer retention formula = S.E.R.V. - No, it's not a misprint. These are the four letters that are the basis for the long term success of your business. These letters contain key points that will keep your phones ringing and your revenues rising.

S.E.R.V. is an acronym for the customer retention formula, which supports the notion that customer service is key to customer retention and business growth.

SERVE your customers. Too many companies seem to forget this basic point. Eventually, these organizations end up paying a stiff penalty.

The customer must know that they are going to walk through the doors of your business and consistently receive a "WOW" experience.

A consistently positive customer experience will not only have customers returning, but will have them referring their friends and family.

This is why it's so important to take the time to break down and explore each part of the customer retention formula.

ENGAGE your customers. Connect with clients whenever possible. Make the effort to reach out to your customers at every possible opportunity.

Know the names of your customers. Know their likes/dislikes and know a little about what is happening in their lives. It's not difficult, it just takes a moment of actually speaking, listening and paying attention to what they say when they approach the counter.

This part of the customer retention formula is clear. You cannot overstate the importance of building a connection with your customers. This connection is what keeps customers loyal to you and your company.

RELATE to your customers. Let them know that you understand their needs and that you are determined to meet or exceed their expectations.

Showing indifference to your customers will only have them quickly turning to your competitors for respect and reassurance.

Ensure your customers know how much you appreciate their business. People want to feel valued. If they feel taken for granted and unappreciated, they will be an easy target for your competition.

VERIFY that what you are doing is working. Following up with your customers is critical to maintaining their loyalty. Send out customer service surveys. Drop in for courtesy calls - do whatever is necessary to keep the communication flowing.

Inspect what you expect when it comes to customer service.

The principles of the customer retention formula are actually very simple. Bottom line, without customer service, there are no customers to serve.

In order to keep your current customers and constantly gather new ones, you have to keep your customer service standards at the highest level possible.

It's a fact that many customers will go where they feel the most "cared for". Despite what you might think, price is NOT the most important thing in the minds of many consumers.

Take care of your customers and they, in return, will take care of you.

Never allow your organization to lose sight of the customer retention formula. Success in customer retention is very basic - you must remember that it will always be the little things that make all the difference.

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