VIEWPOINT
CAN TECHNOLOGY IMPROVE CUSTOMER RETENTION?
Chris Fisher, VP of EMEA, LBMH Division at ECI Software Solutions.
WITH THE MOST recent figures from CIPS showing strength in the UK construction industry, builders’ merchants need to be in a position to make the most of renewed demand - effectively delivering orders in full, on-time and at a competitive price.
Customer retention Merchants understand the value of a loyal customer - many having worked with the same contacts for years.
The importance of a strong customer retention strategy is critical to maintaining high customer lifetime value, and as businesses grow, evolve and personnel change, this requires careful management - especially for those focused on the day-to-day running of the business. Working to attract new
customers can be an effective way to improve turnover, but research suggests that this can cost up to five times more than retaining existing customers.
In fact, one study found that a 5% increase in customer retention can result in a minimum of 25% increase in profitability. What steps can builders’
merchants take to develop a strong customer retention strategy and stand-out against the competition? Given the ongoing supply chain disruption and the price of raw materials constantly fluctuating, this isn’t always straightforward. The key is “control what you can, where you can”, so the customer feels that they are at the heart of everything you do.
Great experience Consistent communication is key to building and maintaining strong relationships. Developing a strategy that includes regular updates on company news,
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step one, but customers should not expect to receive a different service proposition than in store or your investment will struggle from the start.
product developments, industry trends and success stories is an effective first step. By developing a strong external comms strategy, businesses are able to tailor their own story while demonstrating investment in customer products and services.
Adding value to your customers - news of a new vehicle, team member, product, IT system or eCommerce platform all deserves promotion. Using a number of channels such as email, newsletters, social media and blog posts to reach your clients effectively creates a 360 marketing approach. Additionally, personalised communication, such as sending occasional handwritten notes or personalised emails, can further strengthen the client relationship at minimal cost.
A comprehensive and well- structured onboarding process is essential for ensuring your new customers’ relationships start off on the right foot, while at the same time, facilitating a smooth transition from old, possibly antiquated systems. With a dedicated account manager, clients can be assured that they understand your entire product and service portfolio and know where to turn when help and assistance is required. By scheduling regular check-ins during the first couple of weeks of a new relationship,
any questions or concerns can be addressed in a timely manner. A seamless onboarding experience helps lay the foundation for a successful long-term relationship. Once established, long-term relationships must be nurtured to encourage repeat business and customer loyalty. Additionally, rewards such as early access to promotions, dedicated account management or supplier-supported product training can set your business above the rest and demonstrate attention towards customer care. Specific incentives for trade customers, such as tiered rewards programs or volume-based bonuses can also be utilised to drive repeat custom.
By recognising and rewarding dedicated customers, increased satisfaction and a strengthened commitment will build loyalty - inevitably helping your organisation weather price and supply chain challenges.
Knowing customers Understanding each client can help take customer service to the next level.
In order to meet customer expectations and keep up with digital demand, developing an online service that is equal to your in-store service offering is crucial. Being easily accessible for consumer interactions online is
A customer relationship management (CRM) solution organises customer data and means all staff can access information regarding key contacts, previous orders and any special requirements. With all of this information saved digitally, teams can be confident that the information they are relying on is always up-to-date.
With built-in analytics, sales teams can drill down into the profitability of each customer and potential lifetime value. In a data driven world, this kind of information is key for really getting to grips with offering a good quality customer experience, whilst still remaining profitable. Armed with this insight,
businesses can also identify up and cross-sell opportunities. Similarly, if customer activity does start to drop, the sales team can reach out to understand what has changed and whether there is anything that the business can do to better support the customer.
With proactive visibility of order status and potential delays, merchants can take steps to avoid passing this disruption on to the customer. This might involve notifying them as early as possible that an order will be delayed or offering a like-for-like product Providing an all-round, consistent and effective service is a great way to establish a robust customer retention strategy. By investing in technology designed by industry experts, such as ECI Spruce, merchants can modernise processes across the business, boosting income and sustaining future growth. BMJ
www.buildersmerchantsjournal.net May 2023
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