Piaras Kelly PR - Public Relations in Ireland

Niall Cook’s recent post about switching car insurance providers highlighted the fact that consumers, now more than ever, are not loyal to any organisation. Companies are increasingly facing more tradeoffs between retaining and attracting customers. This is a trend that’s not going to go away. The Internet is bringing about a level of price transparency never witnessed before and more regulation is coming into a variety of sectors which will make it easier for customers to switch service providers.

Here are a few tips that companies should consider whilst deciding on a strategy for retaining their current customer base and attracting potential consumers:

Flexibility - Niall Cook’s example of how new RAC customers were being offered a better deal than existing customers highlights how organisations can get so bogged down in terms and conditions. Managers and sales staff need to be given the flexibility whereby they can match offers to retain customers.

For example, the price promise that you see in many retail outlets which says they will match the price of any competing retailer on an identical product affords sales staff the flexibility to make snap decisions to strike a deal.

In a past life I worked in retail and I was often left frustrated that I couldn’t sell more products because I didn’t have the leeway to give customers a better deal, despite knowing the margins.

Good Customer Service - Despite the fact that I’m being told as a consumer to shop around, quite often I’ll just go to the service provider that is most helpful to me, even if I know I’m paying more. The reason why I choose AIB as my bank was because my local branch had a better queuing system than their rivals. If you treat your customers well they’re more likely to stick with you, even if they know you charge more.

Change is hassle. People naturally don’t want to have to up sticks and change service providers, but there’s only so much we can take. Even if you’re fighting a losing battle, you may as well make the customer’s fleeting days with you as pleasant as possible.

No Hard Feelings - Above all make sure there’s no hard feelings when you lose a customer, you never know where you’ll bump into them again.

Despite being emotionally involved with my clients, I know that one day they will either change agencies or I will change jobs. It’s a fact of life. Don’t be a drama queen about it. Burning bridges only hurts in the long run.

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