Source | LinkedIn : By Nidhi Raina
Everyone from Bschools (love them!) and corporates alike will tell you the cost advantage of customer/employee retention over customer /employee acquisition.
Hey, why just them? Even the kinara shops near my home understands that .
So why does one need an article on best retention strategy then ? Sure, everyone must have it figured out by now.
1. One because there is NO such ‘retention’ ramban strategy. There is something else you should know, in its place.
2. Most people still think there is, and worse, measure it.
Let me explain myself:
Employee Retention: Flawed Strategy
You cannot really stop people from leaving. There are many reasons that people might leave you or your brand. It could be their preferences in life may have changed, their spend has increased or decreased, their loyalties have changed, their goals and direction have changed, their needs have amplified, among many myriad others.
Organisations are fighting a losing battle by worrying about these. These are not areas you can or should focus on controlling. Let me share with you the flip side of continuing on this before I tell you a possible solution.
Say you continue to focus on retaining your employee and come up with some amazing algorithm that helps. Then what? If the employees choices, preferences, needs, goals, direction, spend etc have really changed, you still lose
a) You now have a less than motivated person in your chain. His eyes/heart are set somewhere else and his mind is with you. He will never sell you the way you want to be sold. And trust me, you always want to be sold, among your customers, your vendors, your employees, everywhere!
b) You will spend FAR more on him/her as an employee JUST to retain him. Research shared that some of the ‘longest’ clients/people are also the most demanding, rigid and therefore more maintenance.Specially if they are not adding onto you anymore. Any relationship should be a two way street. You may not have been factoring this cost in there.
I understand this negates most of the logic we may have followed thus far to make our numbers. However as an added perspective only – a) maybe the causal relation between your retention strategy and your revenues was surface level only and there were other reasons that contributed strongly too (like the ones I will detail below) that we may have ignored, over this one or b) maybe we never went as deep into other strategies to see their benefits.