Retention presentation

2017
Corporate Presentation:
Focus on Retention

Your company core value and beliefs?
• What are the COMPANY VALUES?
• What does the COMPANY BELIEVE IN?
CONFIDENTIAL AND PROPRIETARY. 2017 All rights reserved.
Kemp Anderson Consulting, Inc.
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1. Can you “outsell” your cancels?
2. Can you “retain” your customers while getting new ones?
HOW?
3. What are the acceptable retention rates per service line?
4. How can retention impact profit and growth?
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Why is Customer Retention necessary?
• It costs much more to generate a new customer than to maintain an
existing customer.
• Losing customers can cripple your company.
• A “SMALL” increase in your customer retention rate should
dramatically increase your profits…
• The “Loyalty Effect” says that a 5% increase in customer retention
yields >25%+ increase in profit:
First: Loyal customers are less expensive to serve than non-loyal customers
Second: Loyal customers are willing to pay more due to the relationship.
Third: Loyal customers are willing to buy more services due to the trust.
Fourth: Loyal customers recommend others to the service and this has the
highest close rate and retention rate.
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What is Customer Retention?
• Customer Retention is the maintenance of the patronage of people
who have purchased a company’s goods or services once and the
company gaining “repeat purchases” cycle after cycle.
• Customer Retention occurs when a customer is “loyal” to a company,
brand, or to a specific product or service, expressing “long-term”
commitment and “refusing” to purchase from competitors.
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How does Loyalty play a role in Retention?
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What is the “Preferred” state of Loyalty?
• Prefers to buy from you
• Positive word of mouth
• Buys multiple services
• Spends more with the
company
• Repeat Customer
• Multiple year
relationships
• Relationship is
“routine”
• Feels part of the
company
• Accepts price increases
• Ignores mistakes
• Only buys from one
company
• Goes out of the way to
tell others
• I’ll call you when I need
you.
• No Loyalty
• Low Conversion
• No multiple service
buying
• Just fix my problem
“Occasional
Loyalty”
Emotional
Loyalty
Attitudinal
Loyalty
Behavioral
Loyalty
7CONFIDENTIAL AND PROPRIETARY. 2017 All rights reserved.

Customer Loyalty Measurement Framework
Advocacy
The number and
percent of new
customers.
Retention
1. Churn Rates
2. Service Contract and
Renewal Rates
3. Use Metrics for
Retention
4. Measure bundles
and
retention/customer
Advocacy
1. Overall Satisfaction
2. Likelihood to
recommend
3. Level of trust
4. Willing to forgive
5. Willing to consider….
Retention
1. Likelihood to Renew
2. Likelihood to leave
Purchasing
1. Likelihood to buy
multiple services
2. Likelihood to expand
use
BehavioralEmotional
ObjectiveSubjective
(SurveyQ&A)
MeasurementApproach
Loyalty Types
8CONFIDENTIAL AND PROPRIETARY. 2017 All rights reserved.

3 Loyalty Landing Spots: Loyal Customers, Neutral
Customers, Detractors…
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Detractors
I will not buy anymore or renew I will tell others not to buy from you at all opportunities
Neutral
I “might” continue to renew I will only buy what I need
LOYAL
I will recommend you to others I will buy more from you and renew

Customer and Brand Relationship Model…
Loyal
Love
Like
Learn about the
Brand
Lack of Awareness
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Fanatical
Protection
Affectionate &
Passionate
Curious and
Engaged
Aware and
Familiar
Who are you?
What do you do?
Why you?
The Brand Objectives:
Advocate and Influence the markets.
Will deliver tailored community engagement.
May Help you build community awareness.
Somewhat aware of company and offerings
Who are you? Not a customer, No trust.

The evolution of LOYALTY…
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Suspect or Lead:
a target to sell
Prospect:
someone who
has taken action
and you have
their
information
Shopper:
someone who
buys from you
one time, one
service
Customer: has
purchased from
you more than
once more than
one service and
or renews yearly
Member: has a
sense of
belonging to
your services
and brand –
retains service
Advocate:
introduces
other people to
your brand and
services –
actively
referring
RAVING FAN:
insists that
others use your
services and
does heavy
recruiting for
you….
The business
goal is
To get
advocates as
customers
That become
RAVING FANS…

Why is Retention so important?
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Retention by the numbers…
Residential Pest >87%+
Commercial Pest >90%++
Lawn and Ornamental 70%-75%+
Termite >90%
A 5% increase in customer retention can
increase a company’s profitability by
over 25%....
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Retention by the numbers….
Love your customers:
Which is Better?
Retaining Current Customers or
Getting New Customers?
68% of Customers LEAVE
because they perceive that
you are indifferent to them.
A 2% increase in customer
retention has the same effect
as decreasing costs by 10%.
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Retention by the numbers….
Roughly 80% of a brand’s
future profits will come from
20% of existing customers.
After YR1 Renewals.
Increasing customer
retention rates by 5% can
increase profit by up to
20%+.
The profitability of renewing
an existing customer = most
profitable customer type.
68% of customer leave
brands because the
customers perceives you are
“indifferent” to them.
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Why do customers leave a company?
1% Customer
dies
3% Customer
relocates
5% Customer
goes DIY or
Other Srvc.
Change
9% Customer
leaves for
Competitor
and/or price
14%
Customer is
unhappy
with the
service
68%
Customer
thinks you do
not care
about them
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Controllable?
Controllable?
Controllable?

Developing customer strategies to drive value
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Retain Customers Reasons to stay: loyalty programs,
discounts, great service!
Cross Sell #Services/Customer
Broaden the Communication and
Relationship
Demographics – Acq. The right
customer
Improve margins of value destroying
customers
Provide me reasons to purchase more
– bundles, packages
Understand me and make relevant
competitive offers
Understand my needs: appropriate
sales
Can I be satisfied more cost
effectively? Route density, generics
BusinessChallenge
CustomerIssue

How can your company Increase Loyalty
and Renewal Rates or Retention?
1. The Selling Process impacts renewal rates and loyalty….Set the
proper expectations at time of sale and sell with integrity.
2. Communication and Scripting: describe what you are doing and why
and phone scripts and door scripts.
3. Free add-on service enhancement: roll up the hose, bring in the
trash cans, sweep the porch, bring in the news paper.
4. Time targets: how long to answer the phone, respond to service
call, wait for technician?
5. Apologize for any issue: service, sales, renewals. Own your
mistakes…
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“Either hold a rock concert or a ballet;
But don’t hold a rock concert and
Advertise it as a ballet”…
- Warren Buffett

Customer retention strategy…
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1. Build Trust through Relationships:
a) Communication
b) Blog
c) Chat, Tweet, +++
2. Implement customer feedback survey allowing customers to rate the experience.
Professionalism, timeliness, value, and so on
3. Strong customer support system with an customer grievance system designed to avoid the
negative experience and word of mouth. Chat, Email, Phone.
4. Personalize the experience. Track and reward referrals and send personalized thank you notes
from the branch, technician, HQ.
5. Referral programs designed to reward existing customers and gain new one’s where everybody
wins.
Define
Attrition
Model
Attrition
Build
Offers
Retention
Strategy
Campaign
Design &
Execution
CUSTOMERS

Successful Retention Strategies…
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• Set customer expectations – Set customer expectations early and a little lower than you can provide to
eliminate uncertainty about the level of your service and ensure you always deliver on your promises.
• Become the customers’ trusted advisor – You need to be the expert in your particular field, so that you can
gain customers’ trust and build customer loyalty.
• Use relationships to build trust – Build relationships with customers in a way that fosters trust. Do this
through shared values and fostering customer relationships.
• Take a proactive approach to customer service – Implement anticipatory service so that you can eliminate
problems before they occur.
• Use social media to build relationships – Use LinkedIn, Twitter, and Facebook to connect and communicate
with customers and give them a space for sharing experiences with your company, so they can become
brand ambassadors.
• Go the extra mile – Going above and beyond will build strong relationships with customers and build long-
term loyalty by paying attention to their needs and issues.
• Make it personal – Personalized service improves customer experience and is something customers are
expecting and demanding. Make their experience personal to strengthen the bond with your brand.
• Scripting – sales, phone center, service, management and all company positions. Manners…Thank you, Yes
Sir, Yes mam, I will follow up…own it.

The #1 way you can improve retention…
1. Listen to the customer needs
1. Stay in front of the customer on a regular basis. Service, Emails, and so on.
1. Keep the customers pulse on “service satisfaction”. Fix issues immediately.
Service calls in 24 hours or less.
1. Don’t tell them what they need. Solve their issues first, then upsell.
1. Care about the customer as a person not a sales generating object. Make
it personal.
1. Responsiveness.
1. Make customer and employee retention critical.
…….It’s a process….there is no magic bullet.
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5 Characteristics of an effective Customer
Advocate….ARE YOU A CUSTOMER ADVOCATE?
1. THE HEART OF A CUSTOMER: Sees the company through the
customers eyes. (Chuck Steinmetz)
2. MUDDY BOOTS: Has spent time in the trenches and knows how to
get things done.
3. STREET CRED: Has the trust and respect of their peers.
4. BEGGAR and BORROWER: Can operate on a slim budget if needed.
Resourceful.
5. TRUE GRIT, INTEGRITY and LEADERSHIP: Will put their career on the
line to win the important battles for the customers and company.
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Retaining the customer…
• Make customer retention measurable and “ALL” Leadership
accountable to the metrics.
• Always honor the agreed price.
• Respect the customers time: being late and being early are both
unacceptable.
• Customer surveys electronically and personally. Know what your
customers are saying about you.
• Deliver all promises.
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Thank you…
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