Alarm dealers work hard to build loyal and long term relationships with customers. But sometimes customers quit. The good news is that you may have more control over customers quitting than you think. Read on for the top 5 reasons customers quit and what you can and cannot do about it.
1) The #1 Reason is Relocation.
Dealers have more control than you would think. Statistics show that many “moves” are “move-ups” to larger homes in the same area. If you have happy customers, you should expect to keep them if they move within your service area. You also have the opportunity to gain a new customer as a new owner moves into the location you currently serve.
2) Service and Billing Problems.
Dealers have near complete control over these areas. Sometimes there are unavoidable mistakes or customer expectations are not met. But what distinguishes the leading companies is the fact that their employees are: a) aware of the problem and, b) in a position to fix them in a respectful manner. A 1995 U.S. News and World Report Survey highlighted that 68% of customers quit because of an attitude of indifference by an employee or specific department. Often it is not what you do, but how you do it.
Successful Dealers sell “solutions” to problems. A range of security solutions and price points can be offered to meet customers´ needs. “Low dollar down” options often get expensive with add-ons. A solution can be tailored to ability to pay.
4) False Alarms.
While Dealers cannot directly control false alarms, they can be instrumental in monitoring their frequency and identifying ways that customers can reduce them. Beyond the inconvenience factor, more and more communities now impose substantial fines for repeated false alarms. As such, dealers should be proactive in working to reduce the incidence of false alarms in their client base.
Dealers do not have control over attrition that occurs as a result of customers who go out of business or file personal bankruptcy. Through consistent slow pay or no pay policies, however, dealers can limit their exposure. Up-front credit scoring, D&Bs, or reference checks can also mitigate losses.
In a business where recurring revenue drives value, increasing customer retention and creating customer loyalty go a long way toward maximizing the value of your business.
How do you increase your customer retention?
Cornerstone’s Billing and Customer Management System uses your customer database and invoices to reduce attrition and build the value of your account base. You can have a proactive move-in/move out program, easy to understand invoices and better customer communication. Contact us today to find out how we can help you improve customer retention.