28th Feb, 2020
Marcom, , Designation
Gone are the days when retention was often confused with loyalty. Brands recognised that while they were able to retain a large number from their long list of the customer database, the retention played no role in determining how much those customers were spending on their competitors (and thus fizzled out the loyalty illusion). Today, apart from expanding their contact database, companies focus on increasing their share of wallet, i.e. the money being received from existing customers for various services offered by their brand.
Successful upselling to the current customer base is what all business leaders dream of, though, not all are able to fulfill the same. While upselling can be understood in simple terms of ‘Would you like to have fries with your burger?’, it’s not that easy a feat when dealing with customers who are being lured in numerous directions with sparkling offers or charming communication by competitors.
Here are some basic yet often overlooked principles which guide this game of increasing customer’s wallet share:
1. Focus on customer share and not just market share
With the 80/20 rule, i.e. 20% of the customers contributing to 80% of the business, it is important that you take care of those 20 percent who already know your credibility instead of pouring all your energies into building credibility amongst new prospects.
2. Know thy customer
It may sound cliched because you know those customers since long but with time, things evolve, visions evolve, and needs evolve. If you’ll put efforts in knowing them in & out, you would be able to direct them to allied products much before even they anticipate a need.
3. Utilize loyalty rewards well
Everyone likes freebies but the length of that ‘feel-good’ depends upon the quality and usability of the freebie, as well as the effort which went into claiming those. Loyalty rewards always strengthen the existing bonds between the customers and the business.
4. Ride on the market trends
Given the dynamic state of affairs, be it B2C or B2B landscape, it is important that you remain abreast of all the latest market trends and accordingly provide your customers with products and services which are in vogue.
5. Keep the brand connect fresh
To maintain the brand (& trust) recall alive in the customer’s mind, ensure that your communication remains interesting and you continue to engage with customers regularly to inform them of any new development at your end.
Now, with these tips handy, expand your customer satisfaction strategy since satisfaction is no more a benchmark if you want to win in the aggressive market race. The time demands using ‘customer satisfaction’ strategies to pull ahead of the competition and the way to do that is through increasing your customer’s wallet share.