By Princess Otoma
We hear that customers are the lifeline of a business, why is this so? This is because the success of a business will depend on its customers. In today’s competitive business space, companies face numerous challenges that threaten their survival. Amidst all these challenges, customer retention is important to the survival of businesses. Retaining existing customers is a critical component for driving revenue, growth and profitability.
Research suggests that it is seven (7) times more expensive to acquire new customers than to retain existing ones. By prioritizing customer retention, businesses can save costs, and ensure long-term survival. An approach that a business can deploy to enhance customer retention is the L.A.S.T approach for customer service management. L.A.S.T is an acronym for Listen, Apologize, Solve & Thank.
Listen
Listening is the bedrock of any means of communication, it involves actively engaging with customers and understanding their needs, concerns, and feedback. In my terms, listening majorly shows how empathetic a customer representative can be towards a customer. Listening Involves attentively hearing out the customer’s concerns. It’s not just about hearing their words but understanding the emotions behind the utterances.
Apologize
Apologizing is about expressing genuine regret for the inconvenience caused, a sincere apology doesn’t necessarily admit any wrongdoing, but it does validate the customer’s feelings. Apologizing is a great strategy to disarm an angry client, they will feel more open to your explanation and eventual solution if they feel like you are on their side. It’s important for customers to feel as if the person they’re talking to empathizes with them.
Solve
The end goal of every customer service engagement is a solution. Solving the problem is the most essential piece of the L.A.S.T method. In the business sector, the team comes up with a practical solution for the problem that will;
- Satisfy the angry customer
- Change their mind about the situation
- Encourage them to return
Thanks
The final step is to thank the customers for their patience and understanding. Expressing gratitude in challenging situations and giving customers a chance to understand what happened is crucial. Something as simple as “we appreciate your understanding as we work on a viable solution” or “Is there anything else I can do for you? Also, thank you for informing us. We appreciate your sincerity” are soothing examples that may be deployed to enhance customer experience.
In conclusion, the L.A.S.T approach is a powerful strategy for business survival and customer retention. By Listening, Apologizing, Solving, and Thanking, businesses can build strong, lasting relationships with their customers, driving loyalty, advocacy, and long-term growth. In today’s fast-paced business environment, the L.A.S.T approach can help businesses stay ahead of the competition and thrive. Try it in your business and track the growth in your customer retention.
Princess Otoma is a Graduate Intern at Olives and Candles (Legal Practitioners). For further information, enquiry or clarification, please reach out to Princess or Olives and Candles (Legal Practitioners) via email at [email protected]