Record tourist numbers, world-leading occupancy rates, and mega queues at major attractions… If there’s one thing we’ve seen this year, it’s that business is definitely back in the UAE.
Obviously, that’s excellent news after the turbulence of Covid, and companies are naturally clawing back their losses by capitalising on new clientele.
However, while businesses are rubbing their hands, there’s a hum of discontent rumbling among regulars complaining about sky-high prices, hard-to-get bookings, and jam-packed venues taking the edge off their enjoyment.
As one friend told me recently after visiting her favourite weekend spot, “it just doesn’t seem like they’re interested in me anymore.” The result? She’s taking her frustration and her money elsewhere next time.
The customer churn challenge
In many ways, the struggle between acquisition and retention is nothing new. Customer churn has always been one of the biggest challenges facing organisations, with research showing that it’s easier (and cheaper) to cultivate existing buyers into long-term advocates than it is to attract new ones.
Some of the main reasons customers walk away are poor service and neglect, which is why brands usually focus on creating a positive all-round experience.
But, we seem to be operating outside of normal parameters right now, heightening the issues involved. The steep economic bounce-back has led to a boom, making it easy to forget some of the basic principles that have stood the test of time.
Unfortunately, one of the first things to slip as demand soars is customer service. Make no mistake, you’re on dangerous ground if previously faithful clients feel like they don’t matter when things are on the up.
The fact is, fortunes can change in the blink of an eye, not just on a macroeconomic level. Various crises can affect an individual company putting a sudden strain on revenue; without a core customer base to rely on, it soon becomes hard to survive.
People want consistent quality interactions, so don’t wait for a downturn to worry about keeping them engaged.
There are plenty of ways you can maximise opportunities in the current climate while continuing to nurture long-term relationships.
Maintaining loyalty
You don’t have to treat all of your customers the same. Start by segmenting your database, so you’re in a position to tailor your communications and have smarter conversations based on their different needs.
Stay engaged by talking to your regulars about the things that matter to them in personalised language, on the channels they prefer.
Show how much you appreciate their loyalty through free gifts, special offers, rewards and ‘VIP’ privileges.
It will be easier for them to accept any inconvenience associated with busier periods, if they’re receiving extra perks for their efforts. (Plus, when you’re sharing benefits for regulars on social media for example, it will encourage newcomers to stick around).
Then, during the quieter times, you can increase the frequency of your communication without looking like you’re only interested in winning back their business to fill a gap.
Customer dialogue is a two-way street. Your consumers deserve to be heard, and this is a crucial time to show that you’re still listening.
Be accessible, ask for feedback, acknowledge their pain points, and be prepared to respond quickly and efficiently.
It’s far better to be aware of any issues in order to deal with them effectively before things escalate, especially in a world where many people go straight to social media to share their complaints.
If a customer airs a valid grievance, be honest with them rather than jumping on the defensive. Most people will appreciate it if you are open about your circumstances and assure them that you’re working to rectify the situation as quickly as possible.
Data is one of your most valuable assets at every point of the customer lifecycle. You need customer details to stay in touch, and it’s just as important for analysing customer behaviour.
When you delve into the insights, you can see what point of the journey each buyer is at and gain a clearer picture based on reality rather than assumptions.
That way, you can develop an engagement strategy to ensure everyone gets looked after, proving that their satisfaction is always a priority.
Lucy Bradley, Brand Commander at Plug Communications
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