Marketers aiming to prevent customers from abandoning their brands must prioritize understanding the underlying reasons behind their decisions before implementing solutions, according to Virgin Media O2’s Director of Customer Experience, Marie Feliho. Speaking at the DMA Customer Engagement Conference on September 12th, Feliho cautioned against hasty, tactical approaches to customer retention, which often act as temporary fixes rather than addressing the root causes.
Feliho emphasized that a key consideration in customer retention is pricing, especially during times like the current cost of living crisis. However, she noted that price is rarely the sole factor influencing customer loyalty. Feliho illustrated this point with an example from Virgin Media, where long-term, high-value customers from other telecoms providers switched to Virgin Media not solely due to price increases but because they encountered difficulties in reaching the previous provider’s call center for assistance.
She highlighted the importance of avoiding a one-size-fits-all approach to customer retention and stressed the need for a comprehensive strategy that empowers all parts of the business to contribute to customer retention. Feliho advocated for an approach that connects various touchpoints with customers, enabling each department to take the most appropriate action to enhance customer engagement.
Feliho also underscored the significance of aligning the brand with consumer needs beyond price and emphasized the role of data in achieving customer-centricity. She explained that data helps brands better understand how to engage customers in their specific industry. In the case of Virgin Media O2, as a utilities provider, creativity is vital to keeping customers engaged. Feliho mentioned the importance of offering services and content that provide additional value, making customers more inclined to interact with the brand’s app or website even when they aren’t facing issues.
In conclusion, Feliho stressed the importance of a holistic and customer-centric approach to retaining customers, one that considers the root causes of customer attrition and empowers all facets of the business to contribute effectively to long-term customer engagement.
