In an article published on July 10, 2013 on the Verint Blog, Dave Capuano, Vice President of Marketing, discussed the importance of turning customer retention into a relationship-based experience instead of a transactional experience.
Too often, companies worry about their customers only as they are ready to leave. How many times has this happened to you with your cable company? We’ve all been there. You are so fed up with the service, the price, wireless internet not working, etc. that you hit a breaking point. You call the company and try to cancel your service. Before you can finish your complaint, though, the company has already started offering discounts and trial offers for premium channels that will keep you on board. This is a perfect example of a transactional experience – the wrong way to do business that ends up being more expensive in the long run.
How many times have you heard “it’s cheaper to retain a current customer than it is to acquire a new one”? This can be very true, if done correctly. Retaining customers is not a one-stop, quick fix. Retention does not begin when the customer is threatening to cancel their season tickets. It’s a long-term, proactive relationship that begins when the season ticket holder signs on with the team. It is important to find out what value the season ticket holder is getting from the tickets, what made them sign up for the tickets, and how you can keep the value of the tickets high. Knowing the answers to these questions will go a long way in building a relationship with your customers. Implementing a Voice of the Customer program is key to a retention-based service approach. A Voice of the Customer program is not a one-size-fits-all solution. It involves a lot of data and many touch points. Below are a few examples of elements included in Turnkey’s clients’ Voice of the Customer programs, all of which are aimed at better understanding stakeholders’ wants and needs.
- Season ticket holder surveys
- First Year STH Study: This survey focuses on why a season ticket holder purchased his/her ticket plan and what those season ticket holders’ expectations are, and dives into specific demographics.
- Mid-Season and End of the Year STH Study: These surveys focus on season ticket holders’ experiences. What aspects of the gameday experience do they love/hate? How are they interacting with their account representative? How do they value their benefits? What can the team do better? What is the likelihood they will renew their tickets?
- Retention scoring
- Turnkey’s retention model predicts season ticket holders’ likelihood to renew their tickets throughout the season by using data provided by the team (e.g. ticketing data, email opens, additional purchases, etc.) and demographic and lifestyle data to produce a retention score. If a season ticket holder receives a low score, an account representative can proactively reach out to the season ticket holder before renewal time to address any issues that may be percolating.
- Data tracking
- Teams will examine data points like ticket scan history, re-sale data, exchange data, account representative interactions, email opens, and tenure to identify patterns that may indicate a season ticket holder’s increased likelihood to cancel their tickets, and put ticket holders in those categories in a tailored service model.
Implementing a Voice of the Customer program now will save many headaches when renewal time comes. Don’t wait for the “churn” moment when your season ticket holder is about to cancel – be proactive!
Read Dave Capuano’s full article, “Customer Retention: It’s More Than Just Churn”, here.