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Proactive Support Stories #1: How A Call Saved My Day

Basic Support or Unnecessary Support?

Back in the day, when I was running my own startup, I had this fear of missing out on important meetings and I would make sure that I block my calendars with enough of them to ensure that I was on top of everything. In my opinion, this is a basic requirement any executive would have. Comparing this to the customer mindset, there is a very simple yet important requirement that customers want to know any updates to their service or product and how it impacts them at any given moment.

Customer Acquisition is Important. But Retention?

I would like to continue by telling a story that happened to me a few months back. I wanted to commute and I had gotten tired of the two popular cab services in Chennai. I wanted to try something new and got hold of another service provide who was a new entrant to the market. I had started to like their service and was wondering if I could switch completely to them and make my life easier. This is when the following incident happened.

Why is Customer Retention is at the Core of a Business?

Every business tries to optimize their CLV (customer lifetime value) and its CAC (customer acquisition cost) to enable them to get more revenues. On a simpler note, by investing in the CAC, the business gets to have a go at the CLV the customer provides the business. By trying to increase the CLV (rate of purchase and margin of each purchase), a business can increase their gross margin. Though the calculations are simple, the execution of this is always a problem because there are lots of complexities like support, customer happiness, quality of the service/product, price comes into play. These all affect the rate at which the customer purchases again (frequency) and also the amount of each purchase. So, a business has to make more efforts to retain the customer so that the CLV doesn’t get affected by its other functions.

What happened to Me & My Story?

So going back to my story, I booked a cab using their mobile app and I was doing my usual work while the cab arrived. This commute is important because I wanted to reach the meeting at a time before and be ready as always. While I got immersed in my laptop, I had completely forgotten about the cab booking and I was too into the work where I needed to complete a document. Right then, the phone rang and I put the call on speaker and was about to talk to the driver who I thought might have called asking for directions or location. But I was surprised that the call was from their support center and they said that the driver’s location is not moving and he was unreachable and wanted to confirm with me whether to book another driver or find alternatives. I was pleasantly surprised that they had brought up this problem to me directly and wanted to check if the problem could be solved. Even though I went ahead and cancelled the booking and got into an auto on the road, if they had not informed me of the problem, I would have never made the alternative arrangements myself. This I found to be of great importance to me as a customer and made me feel a little bit more safer with them and their support.

Proactive Support

The proactiveness of the above incident really made an impact and helped to get the impression that they really care about. I wanted to write about this very event with one aim - to talk about how caring for your customers helps them in the most fascinating way and helps businesses grow and retain their customer easily. Be proactive, be awesome.

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