As a provider of retention and cross-selling services to energy retailers, I’m also often asked, “What about growing my company? Can DR2 help me acquire new customers?”
My response is, “We are.” In the first place, every customer retained is one that doesn’t have to be replaced. So retention is as important to growth as acquiring new customers. It’s just much less expensive.
In addition, the strength of a brand, after all, is a major factor in acquiring more customers. DR2’s services are all about building a strong brand through digital communication. While we’re improving retention rates and increasing margins through cross-selling, we’re also building our client’s brand. Although it is hard to measure directly, a stronger brand absolutely equates to more new customers.
But there’s an even deeper answer. Every energy retailer I’ve encountered has a core competency around acquiring new customers. It’s what every retailer does well. They manage the acquisition channels effectively (door-to-door, telesales, direct mail, direct selling, referrals, etc.). The overriding mood, the pervasive tone at most retailers is one of aggressive enthusiasm and excitement–because that’s the right mindset for acquiring new customers! At most of DR2’s clients, you can literally feel that buzz when you walk in the door.
Retention, however, is different. Once you have a customer, it’s important to adopt a different tone. Retention is all about communicating reassurance and comfort. Instilling confidence. (So is cross-selling.) It’s hard to create that softer tone inside most retailers, especially smaller ones, because the rest of the organization is built around aggressive excitement and enthusiasm. Indeed, this is why so many retailers struggle with retention, and why so many of them outsource it to DR2.
By focusing on retention as our goal, DR2 creates in each customer a confidence and trust in our client. That allows us to dramatically improve retention rates, but it also makes for a great brand–and brand is a major determinant in acquiring more new customers. In sum, better retention fuels even more new customer acquisition.