Boost Customer Retention With These 5 Powerful Client Survey Questions
By: Kathleen Ries-Jubenville | Read time: 5 minutes
High client turnover can lead to decreased profitability, reduced customer lifetime value, increased marketing and sales efforts, and a damaged reputation. Turnover is an indicator of low customer loyalty and problems with the services you are providing. It is crucial for you to address these problems and prioritize customer retention to foster long-term success and sustainable growth.
- High client turnover directly impacts a company's profitability. Acquiring new clients is often more expensive than retaining existing ones. When clients leave, companies lose the revenue they bring in, and the costs associated with acquiring new clients can erode profits. According to research from Harvard Business School, boosting customer retention by even 5% can increase profits by 25-95%!
- Client turnover results in a shorter customer lifetime value (CLV). CLV refers to the total revenue a customer generates over their entire relationship with a company. When clients leave early, companies miss out on the potential long-term value they could have provided. Not only do long-term, repeat clients often represent 65% of total sales, but businesses also have a 60-70% chance of upselling to an existing customer.
- Constantly replacing lost clients requires additional marketing and sales efforts. Companies with high client turnover must continuously invest resources in acquiring new clients to compensate for the departing ones. This can strain budgets, time, and energy that could have been allocated to other business initiatives. It costs 6-7 times more to acquire new customers than to retain existing ones.
- Constant client turnover can damage a company's reputation. If clients are leaving due to negative experiences or dissatisfaction, they may share their negative feedback with others, leading to a tarnished reputation. This can make it more challenging to attract and retain new clients in the future. And more than 70% of customers will switch to a competitor when they have a bad experience with a brand.
So, there is plenty of proof that a lack of customer loyalty directly impacts your company's bottom line! Building strong customer loyalty is crucial for sustainable business growth and success.
But how do you know what to do to improve your services and keep your clients coming back for more?
The best way is to just ask them!
HERE A 5 POWERFUL CLIENT SURVEY QUESTIONS TO HELP YOU BOOST CUSTOMER RETENTION:
- How likely are you to recommend our product/service to a friend or colleague?
Known as the Net Promoter Score (NPS) question, this question serves as a key indicator of customer satisfaction and loyalty. By asking customers to rate their likelihood of recommending your product or service on a scale of 0 to 10, you can segment them into three categories: promoters (score 9-10), passives (score 7-8), and detractors (score 0-6). Promoters are highly satisfied customers who are likely to recommend your business, while detractors are unsatisfied customers who may be at risk of churning. By analyzing the distribution of scores and focusing on improving the experience for detractors, you can take targeted actions to enhance customer satisfaction and retention.
- What is the one thing we do better than our competitors?
This question helps you identify your unique value proposition and understand why customers choose your business over competitors. By collecting feedback on your strengths, you can emphasize and enhance these aspects in your marketing efforts. Additionally, this question can uncover hidden competitive advantages that you may not have been aware of, enabling you to refine your messaging and differentiate yourself further from the competition. Understanding what sets you apart in the eyes of your customers can significantly impact customer loyalty and retention.
- What is one thing we could improve to better meet your needs?
Customer feedback is a goldmine for improving your products or services. By directly asking customers for suggestions on how you can better meet their needs, you demonstrate your commitment to their satisfaction. This question can reveal pain points or areas of improvement that you may have overlooked. Actively listening to customer feedback and implementing relevant changes will not only address their concerns but also enhance their overall experience, leading to increased customer retention.
- How would you rate the effectiveness of our customer support?
Customer support plays a critical role in customer satisfaction and retention. This question allows you to assess the effectiveness of your support team in addressing customer inquiries, resolving issues, and providing a positive experience. By analyzing the feedback, you can identify areas where your support team excels and areas where improvements are needed. Consider investing in training programs or tools that can help your support team deliver exceptional service consistently. Improving your customer support can foster stronger relationships with your customers and enhance their loyalty.
- What additional features or services would you like to see from us in the future?
This question helps you understand the evolving needs and expectations of your customers. By exploring their desires for additional features or services, you gain insights into potential opportunities for innovation and expansion. Customer preferences change over time, and by staying attuned to their evolving needs, you can ensure that your offerings remain relevant and valuable. Implementing new features or services based on customer feedback not only increases customer satisfaction but also strengthens their loyalty and reduces the likelihood of them seeking alternatives.
BONUS QUESTIONS TO ASK CLIENTS IN AN EXIT INTERVIEW:
Even if you never survey your existing clients, at least ask the following two questions when a client is cancelling their services. Their answers may be hard to hear, but they will give you the best insight for making the improvements needed to keep the rest of your clients happy and be better able to acquire new ones. Plus, you may be able to win a sour client back, just by showing you care about their experience.
- Was there one particular thing that made you cancel?
- Is there anything we can do to win you back in the future?
Keep in mind... sometimes your business is not the right fit to supply the solutions they are looking for, so only implement their suggestions when it aligns with your brand and business strategy.
When you listen to your customers and take action based on their feedback, you will be well on your way to building strong and lasting relationships that benefit both your business and your customers. You will make more money while creating a culture of excellence in customer service.
Source for statistics: https://www.zippia.com/advice/customer-retention-statistics/
The Fearless Climbers
Sign up for weekly mindset, marketing & sales tips for entrepreners!
Subscribe now to get your first edition today!
You can unsubscribe any time and we will never sell your information.