When we talk about customer retention, we are referring to a company's ability to keep its customers interested in its services for a long time. It is a percentage-based metric that measures the number of customers retained at the end of a given period. If taxi businesses fail to keep customers interested in their services, the opposite would happen, that is, the customer abandonment rate would increase.
It's essential to strike a healthy balance between welcoming new customers and making your existing customer base feel special. It can be achieved by ensuring that your needs and expectations are met. And we must put special emphasis on increasing this group of your followers and making their experience exceptional.
It is extremely important that those who run transportation businesses are up to date with the strategies to retain customers and if they are not, this article will be of great help. In addition to knowing the strategies, they will also know how these strategies can be applied in large or small companies. In addition to them, in this article you will find elements that are related to the topic of customer retention.
Retention rate by industry
You need to know exactly where you stand in a business at all times. How is this achieved? Well, you need to measure everything, because everything that is measured and looked at from another perspective improves. Compare your customer retention rate to the industry average, once you do, strive to improve it even further. By doing so you will be able to obtain a competitive advantage over the competition in the market.
Retention by industry is much broader, requiring extensive research and dedication. However, once you manage to progress in it, the results are favorable on a large scale. For this reason it is recommended for large or small taxi service businesses.
Why is customer retention important?
Studies carried out in the market indicate that 80% of income comes from 20% of its clients. This is popularly known as the 80:20 rule or Pareto principle, it is a fundamental phenomenon that applies to everything. In fact, it is Zipf's law, an example of this can be seen in popular novels. 20% of the words make up 80% of the text in any writing material, whether it's Shakespeare's Hamlet or Darvin's theory of evolution.
Be clear that 20% of the products drive 80% of the sales, 20% of the population owns 80% of the wealth and this brings us back to the first line: 20% of the customers generate 80 % of the incomes. However, the numbers do not have to be exactly 80-20 and they do not have to add up to 100. They can be 70-25 or 90-15 or another amount. The fact is that almost 65% of the stability of taxi businesses comes from regular customers.
Customer retention strategies
Once you know what to do, the next question you need to solve is how to do it? The ideal way to do it is to learn from the best. That is why below we have listed some references of different retention strategies perfected by some brands.
For customer retention:
By inspiring with a mission, starting a customer education program, using subscriptions, administering customer surveys, you could make great and noticeable progress. However, gamification will also be a great help, as will rewarding your loyal customers, personalizing apologies for errors, offering experiences, and personalizing customer thanks.
Experts in the area express that the difference between a good and a great business is that a good business sells its products, while an excellent one sells the idea. That is, it is not the product or service that people become emotionally attached to, but rather what the brand represents.
Another method that will help you is to take a step back and replace the "why" to think about your own business. Once you analyze it, redefine your buyer personas. Starting a customer education program would be great.
Users must recognize the value of your taxi business
With the customer education program we mentioned above, you will demonstrate the commitment you have to your customers for the long term. Many taxi businesses are educating their customers by introducing knowledge bases, discussion forums and video tutorials.
In fact, some well-known brands on the market also provide courses and certifications to learn about their products. Some of them even offer content that relates to the service they offer, which is helpful for customers who are out of their offerings.
It is a fact that customers return to buy or request a service if they receive special treatment. In fact, if the transportation business does a great job, it doesn't need to charge a fee for its subscription model to gain customer loyalty.
Reward your customers' loyalty and they will reward you
By keeping track of who your most loyal customers are, you will realize how necessary it is to reward them with gifts and surprises. With this you will be able to guarantee that all the people who support you in your development consider themselves appreciated. This customer retention strategy is simple but powerful and sets you apart from other transportation businesses.
Customer retention strategies are only effective if you know how to apply them and are consistent. Discipline is something that causes businesses to succeed and if you consider that your company has this, you only have to apply the strategies that we leave you in this article. With these, you will be able to stand out among the different taxi businesses.