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MWH Public Relations (MWHPR) employs a comprehensive approach in learning our clients’
business needs and expectations to fully execute successful public relations campaigns. We offer
state-of-the-art products and services that actively respond to our clients’ target markets. Contact
us today and let us distinguish your brand, drive your new acquisitions and repeat business.
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CUSTOMER RETENTION TOOL KITTABLE OF CONTENTS
Customer Retention Service 2
Our Approach 3
Customer Service History & Segmentation 4
Segmentation Groups 5
Stay in Touch 6
Helpful Hints 8
Reconnect with Lost Customers 9
Startling Statistics 10
Loyalty Programs 11
Loyalty Program Solutions 12
Customer Satisfaction Surveys 14
Customer Satisfaction Surveys 15
The End Process 16
Customer Service Training 17
Training Options 18
Customer Retention Rate 20
Customer Retention Value Proposition 21
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CUSTOMER RETENTION SERVICEMWH Public Relations (MWHPR) offers the Customer
Retention service to help our clients fully engage their
customers, build long-term relationships, and drive
repeat business.
We believe customer retention is a process and
have committed resources to ensure our clients are
enacting the proper strategies to maintain sustainable
business growth. The MWHPR Customer Retention
Specialist (CRS) is charged with helping clients
develop and implement solid customer retention
practices that become an intricate component of
corporate strategy. With our phased-in approach,
our clients are guided through the entire process
and learn how to effectively use customer retention
tools and strategies to enhance their customer
relationships.
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Phase 1 Assessment
The CRS evaluates our clients’ current customer retention
practices and identifies opportunities for improvement.
The CRS also isolates any mitigating factors that could
impact successful implementation.
Phase 2 PlAnning And develoPment
The CRS works with our clients to create or fine-tune
existing customer retention practices that reflect their
overall goals and objectives and plans for future growth.
This determines the strategies and/or tools that our clients
will use to fully engage their customers.
Phase 3 imPlementAtion
The CRS ensures that management and designated
employees understand the proper use of the customer
retention tools and how to incorporate them into their daily
routine. The CRS will then determine if any supplementary
MWHPR services are needed to further enhance newly
developed practices.
Phase 4 meAsurement
The CRS helps our clients determine the best method of
measurement to ascertain the effectiveness of their customer
retention practices. Clients then set appropriate benchmarks
and review monthly, quarterly, or annually as they see fit.
MWHPR encourages our clients to use the Customer
Retention Tool Kit as a reference guide in spearheading
their customer retention efforts. Our CRS, Carolyn
Hartmann, is available to help you embark on your journey.
You can reach Carolyn at (713) 840-6392.
OUR APPROACH
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CUSTOMER SERVICE HISTORY & SEGMENTATIONCompanies who are leaders in their markets know
who their customers are: when they buy (purchasing
patterns), how they use their products and services,
what they are likely to need or want next, and why
they buy from them. Having a 360 degree view
helps them stay one step ahead of their customers
anticipating their future needs and requirements.
Ideally, your customer intelligence should originate
from one data source. If you have customer
information dispersed among multiple platforms,
some form of systems integration might be required.
There are various types of Customer Relationship
Management (CRM) software available that houses
customer service history and makes segmentation
a much easier process. The software also tracks
customer behavior which facilitates product and
service development.
Once your customer profiles are in order, you can
begin the segmentation process. Segmentation is the
secret weapon of any effective marketing program.
It provides a better user experience and definitely a
better conversion rate because you are reaching out
to a targeted audience group. Every organization has
its own segmentation strategy. However, there are
some basic practices or principles that can be applied
across the board.
Customer service history and segmentation help you hit the ground running. They form the basis of all your
customer retention practices and allow you to anticipate your customers’ needs and expectations.
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SEGMENTATION GROUPSThe following provides a list of the different groups that many organizations choose to segment.
High Risk Target customers on the verge of discontinuing
service immediately to see how you can improve the
quality of your products and services and relationship
building efforts.
Revenue GeneratorsTarget high revenue customers on a regular basis for
increased profit margins.
New Target brand new customers within the first two
weeks to establish relationship and build credibility.
Current Target existing customers to retain business and
qualify sales leads.
Loyal Target long-term customers to show your
appreciation for their business and acquire potential,
new services.
InactiveTarget customers who have not been in contact with
you over a certain period of time to determine if there
are any issues of concern.
LostTarget customers who have relinquished services to
obtain feedback on the quality of your services and
your relationship building skills.
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STAY IN TOUCH Frequency of communication
is a must if you want to sustain
your customer base. Staying
in touch with your customers
builds rapport which leads to
future assignments and refer-
rals. Both are key components
of a successful business plan.
This approach will enhance your
perception as a dependable and
professional resource.
The following strategies can
help you establish the frame-
work for stronger relationships
generating significant ROI.
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CALL YOUR CUSTOMERS
In the age of pervasive online
communications, it’s easy to lose
sight of the traditional forms of
customer contact. The simple act
of calling your customers is the
mainstay in customer service.
You can inquire if your prod-
ucts and services are living up
to your customers’ expectations
or hindering their operations.
Calling your customers on a
regular basis tells them they are
on your radar and are important
to your business.
EVENTS
Company-wide and/or networking
events are a great way to connect
with new and existing customers
and reestablish former relation-
ships. Branding, special occasions,
open houses, etc. provide the
opportunity to unveil new services
and reveal the future direction
of your company. These events
also generate sales leads and
encourage customers on the fence
to return. Your customers are
appreciative and are more likely
to view you as reputable service
provider who cares.
SOCIAL MEDIA
According to Nielsen’s 2012 Social
Media Report, Americans spent 121
billion minutes on social networks
between July 2011 and July 2012,
up from 88 billion the previous
year. Social media is here to stay.
Whether it’s to keep open lines of
communications with C-level exec-
utives or to promote your brand in
new and exciting ways, businesses
can generate significant revenue
with social media if used prop-
erly. Engaging in social media on
a steady basis helps you achieve
constant visibility with your target
audience and create a special
bond where your customers are
invested in your success and are
willing to take notice.
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BLOG
A blog is a simple and inexpen-
sive way to stay in touch with
your customers. It’s one of the
most powerful weapons in your
marketing arsenal. Your blog is
primarily used to promote your
products and services, keep your
customers informed about the
latest company updates, increase
brand awareness, and attract and
retain customers. Blogging also
provides a more personal connec-
tion with your customers giving
them the opportunity to provide
ongoing feedback.
eNEWSLETTERS
Online newsletters are extremely
valuable in connecting with your
customers. They facilitate dialogue,
strengthen relationships, enhance
marketing efforts, and increase
lead generation. eNewsletters
also provide helpful analytics
for tracking and measuring their
effectiveness. Most importantly,
they further differentiate your
brand and achieve customer loyalty
and retention.
EMAIL CAMPAIGNS
Email campaigns are useful
tools if leveraged properly. They
provide the perfect outlet for
ongoing communications with
your customers. Unlike tradi-
tional marketing techniques, email
campaigns can be highly custom-
ized in delivering messages to a
particular segment or target audi-
ence. They also produce detailed
analytics to help you secure the
success of your customer engage-
ment strategies.
HELPFUL HINTS
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RECONNECT WITH LOST CUSTOMERSThe national average of customers who leave their service provider every year is roughly twenty percent. That’s
one out of five of your current customers! Several surveys administered by the American Society for Quality
Control, the Harvard Business Review, U S News & World Report, and even the Swedish Post Office titled “Satsa
pa Kunden” (“Focus on the Customer”) investigated why customers end business relationships. Each survey
was done independently, yet produced the same results.
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STARTLING STATISTICS14 percent left because complaints were unresolved
9 percent left for the competition.
9 percent moved out of town.
68 percent said they left for “no special reason.”
It’s in your business’s best interest to reconnect with the 68 percent of customers who severed ties to recoup lost
revenue and gain invaluable feedback as to why they ceased contact. How can you and other organizations circum-
vent this scenario?
Here are some helpful tips for reestablishing customer relationships
• Monitor customer retention programs or initiatives to refine current practices or develop new strategies.
• Categorize top reasons why customers leave to identify improvement opportunities.
• Regularly obtain customer feedback to deter customer exits.
• Offer incentives to returning customers.
• Monitor returning customers closely to gauge their satisfaction.
• Invite lost customers to company-wide events to demonstrate your level of commitment.
• Customers leave for a wide variety of reasons, some because they had an unpleasant experience, others because
they felt unappreciated, or those that no longer needed your products and services. How your business responds
to your customers’ departures has an enormous impact to your revenue stream and could adversely affect public
perception giving your competitors the upper hand.
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LOYALTY PROGRAMSWhether you’re a small business or global franchise, investing time and resources in a loyalty program is a major
component of corporate strategy. While expanding your customer base is essential to business growth, long-term
customers should not be taken for granted. Promoting customer loyalty is crucial for many reasons. Some of the
benefits include:
Repeat Business
Greater Volume
Cross-Selling Opportunities
Competitive Advantage
Word-of-Mouth Marketing
Increased Profit Margins
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LOYALTY PROGRAM SOLUTIONS“Most businesses today are at a very basic level in
how they use loyalty programs, and many customers
see them as punitive. Businesses that do reward
programs right can garner incredible loyalty,” says
Harvard Business School senior lecturer José Alvarez.
A well thought-out loyalty program can help iden-
tify purchase data from regular customers. Once
shopping habits are tracked, businesses can better
anticipate their customers’ needs. Loyalty programs
can then be tailored to resemble customer behavior.
The following provides examples of successful loyalty
programs that have proved successful for both small
and large businesses.
TRADITIONAL LOYALTY PROGRAMS
Simple Points System – Customers work toward a
certain amount of points to earn rewards.
Tier System – Customers join a loyalty program and
receive an initial reward. Value of the reward increases
as they move up the “loyalty ladder.”
Upfront Fee for VIP Benefits – Customers are
charged a one-time fee to simplify the buying
process.
Coalition Program – Customers benefit from a stra-
tegic partnership between two service providers that
provide complimentary services.
Games – Customers win rewards by participating in
competitive games.
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ONLINE LOYALTY PROGRAMS
Mobile Integration – Mobile apps allow consumers to make payments via a QR code.
Mobile apps store consumer transaction history and encrypt card data requiring use of a Pin number for access.
The app also tracks points and offers discounts.
Social Media Integration – Consumers tag certain items online and gain rewards as they recruit friends to
register with and make purchases on specific websites.
Consumers are rewarded via their Facebook likes and WordPress comments.
PunchTab Integration – PunchTab is the world’s first, instant loyalty platform reaching over 20 million consumers
across hundreds of sites that have integrated companys’ loyalty programs. With PunchTab, publishers, retailers,
and application vendors deploy tightly integrated reward programs to their users in minutes with no development
or marketing costs. Consumers can immediately authenticate through popular social networks and start earning
loyalty points that are redeemable for exclusive offers, gift cards, and custom rewards.
Digital Integration – Consumers earn rewards by sharing their information via Facebook, Twitter, digital and
in-store scavenger hunts using a points system.
It is important to realize that active customer engagement is the precursor to loyalty. Customers have to know they
matter and believe that loyalty programs are not convoluted schemes to “win” trust but a way to show appreciation
for their commitment to the company.
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CUSTOMER SATISFACTION SURVEYSAn organization must be well-versed in relation-
ship management to attain long-term growth and
profitability. Responding to your customers’ needs,
following up after a sale, going the extra mile in recti-
fying a problem are simple steps that contribute to
customer satisfaction.
Customer satisfaction surveys assist management
in developing strategies to achieve the all-important
goal of gaining and retaining customers. Surveys play
a key role in identifying opportunities for improve-
ment. They can also pinpoint areas that can be
leveraged to achieve business growth and expansion.
Many factors are involved in orchestrating a customer
satisfaction survey. It is truly a process.
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CUSTOMER SATISFACTION SURVEYSThe early stages of development are crucial and have to
be constructed and well-thought out to be worth the time
and effort. If the proper steps are followed, your survey can
yield reliable and credible results which can be acted upon.
To begin, you have to decide whether your survey will
be administered online or offline. This determines the
nuts and bolts of the survey from design and format
to data collection and analysis. With the emergence
of social media, eMarketing, mobile apps and over-
whelming access to the internet—businesses are now
looking to online surveys to judge performance.
There are many practical purposes of online surveys
that benefit both the business and the customer.
Online surveys make the collection of data analysis
a more efficient and cost-effective process. Online
survey tools offer analytics which can track activity
in real-time and repeat deployments. These types of
surveys also offer anonymity increasing your chances
of getting honest and frank input from respondents.
To facilitate the success of your customer satisfaction
surveys, please use the following tips as a helpful guide:
• Define your goals to drive the execution and
delivery of your survey.
• Determine if your first survey will be a bench-
marking survey.
• Recruit the “right” target audience and segment
accordingly.
• Determine the survey time period.
• Structure questions that complement your data
analysis.
• Keep your survey short and simple to encourage
survey completion.
• Use constructive survey tools to capture your
results facilitating data compilation and analysis.
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THE END PROCESSAfter appropriate data analysis and results compi-
lation are completed, you should ask the following
questions. Who will receive and use the results? How
will they be used? Will the findings be shared with
your participants? Where will they be posted? These
inquiries require your upmost consideration because
they affect how your customers view your motivation
behind the survey. Generally, your customers want to
know their opinions matter and will be acted upon.
When your survey findings are evaluated by the appro-
priate individuals within your organization and shared
with your participants, it is crucial to devise a formal
action plan and carry out the necessary deliverables
regarding the identified improvement opportunities.
This will validate your entire survey and show that you
do listen to the voice of your customers.
MWHPR offers a Customer Satisfaction Program
to enhance your customer retention efforts while
improving your products and services. Our CRS will
work with you in designing and structuring your
survey using the proper tools to capture and analyze
survey findings.
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CUSTOMER SERVICE TRAININGStatistics show that roughly 90 percent of the time, customers will sever ties if they have an unpleasant
customer experience.
Customer Retention expert Michael Lowenstein, Vice President for loyalty management at Harris Interactive,
states that employee engagement and loyalty have a direct relationship to customer satisfaction. “Employees
directly contribute to both customer disappointment and delight. It is essential that companies have research
and analysis methods that link employee performance to customer behavior so they can hire, train, recognize,
and reward employees for adding value to customer relationships.”
To initiate employees into the customer engagement process, they must be well-equipped with the proper
tools to enhance the customer experience. Because customer service representatives are often the first line of
customer contact, they must demonstrate proper telephone etiquette. By clarifying the proper way to answer
an incoming call or end a call, employees add value and give the customer the incentive to call back should the
need arise. This is why telephone training is crucial for customer retention. Employees are coached in handling
various types of personalities such as disgruntled customers.
The following provides varying forms of customer services training that are in practice today.
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TRAINING OPTIONS
IN-HOUSE TRAINING
Customer service training conducted in-house can be
customized to accommodate the immediate needs of
the company and compliment the corporate culture.
Employees are more willing to participate in a familiar
atmosphere. Because an “outside” trainer,” is not
involved, costs are relatively contained.
(EXTERNAL) PROFESSIONAL TRAINING
Employees are exposed to a multitude of customer
service best practices from an outside source that has
varied experience in the subject matter. Participants may
take instruction better from an outside source versus a
representative within their own company. Because profes-
sional training can be costly, you may want to explore the
merits of in-house training then evaluate accordingly.
TRAINING SEMINARS
Similar to (external) professional training, seminars
introduce participants to a wide range of ideas and view-
points from both the instructor and other participants.
Seminars also promote social interaction where best
practices can be gleamed. However, they are usually not
tailored to your organization’s goals and objectives.
VIDEO TRAINING
Organizations employ customer service training
videos when the subject matter is more industry
specific. This training is cost-effective as one set of
videos can be used for any number of employees.
Video training also offers scheduling convenience.
The drawback is that there is no social interaction
among participants and the instructor.
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ONLINE INSTRUCTION
Online customer service training gives employees
independent access to customer service training
modules. For some time, online methods of
training were criticized for their lack of two-way
interaction. However, with the dawn of social
media, two-way interactions are instantaneous.
Companies must evaluate the type of customer
service training that mirrors their corporate
strategy and gauge the success rate. This will
facilitate choosing the appropriate training curric-
ulum that will have a positive impact on their
retention efforts.
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CUSTOMER RETENTION RATEThe customer retention rate enables clients to evaluate their relationship building efforts, lower cost, and maxi-
mize profitability. The retention rate also helps clients identify operational issues affecting their ability to attract
and retain customers.
The customer retention rate is considered a factor of frequency; the percentage of customers that subscribe to
client products and services on a regular basis. While there is not one standard method of measurement, the
most widely used calculation translates as the number of “repeat” customers over the total number of existing
customers.
While this formula applies in most cases, the CRS helps our clients decide what variables to include in the
calculation such as customers on retainer, customers that sign on midyear, etc. The key is to analyze repeat
customers over a long enough period of time to gain an accurate picture of your current retention practices. The
majority of organizations review their retention rate on an annual basis.
Once the retention rate is determined, clients can set appropriate benchmarks to gauge success and continu-
ally improve the process. Research suggests that a small 5 percent increase in customer retention can lead to a
75 percent increase in profits so it is critical for businesses to identify any obstacles that are adversely impacting
business growth and implement tangible solutions.
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CUSTOMER RETENTION VALUE PROPOSITION
The Customer Retention Specialist (CRS) will ensure our clients establish solid customer retention initiatives,
increase retention rates, and develop mutually beneficial relationships. These strategies will create an environ-
ment where their customers are valued, appreciated, and add to the bottom-line long-term.
For additional information about the MWHPR Customer Retention service, please contact
Carolyn Hartmann at (713) 840-6392.
Carolyn Hartmann
Customer Retention Specialist
(713) 840-6392
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713.840.6392
Fax 832.698.2882
1 RIVERWAY, STE. 1700 | HOUSTON, TX 77056
mwhpublicrelations.com
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