A Roadmap For Shielding Your Taxi Company From App Attrition
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Tips on how to keep your customers coming back and reduce the churn rate.
App Installs. Customers. Bookings.
These are the only 3 goalmouth taxi app companies vie for.
Unknown by the fact, customers are the only asset to ‘run’ or ‘ruin’ the business–sadly most taxi-hailing businesses are obsessed only with conversions and are careless about the customers.
By all means, focusing more on customer penetration/acquisition and getting bookings from new customers is great, but retaining your existing – and –loyal customers and keeping them satisfied should be the key target. Since several market research of ride-hailing apps have found that 61% of sales come from existing customers!
In the taxi service industry, like any other business, the consumer is always the nucleus around which the business revolves. To keep the customers coming back, taxi app brands have to identify and evaluate the most pressing needs and preferences of customers.
With this objective in mind, to increase your customer satisfaction rate thereby, decreasing the churn rate here are a few app attrition strategies that work best.
Raise the bar of Customer Expectations
For increasing the retention rate of loyal customers, businesses have to meet their customer expectations and align their taxi app’s features and functionalities as per their consumer preferences.
According to Richard Brandson, setting customer expectations at a level that is aligned with consistently deliverable levels of customer service requires that your whole staff, from product development to marketing, works in harmony with your brand image.
Gone are the days when merely addressing customer complaints meant greater customer service. With the shift in technology, increased awareness and rising demands, meeting customer expectations has become a key requisite.
Here are a few pointers that your taxi-hailing companies should pay attention to:
- Faster responses to inquiries, grievances, and complaints
- Simple, easy-to-use, and intuitive taxi app solution that makes taxi booking easier
- Ability to track drivers in real-time
- Ease to cancel the bookings in case of any plan change
- Providing fare estimation before booking the ride
- Allowing your customers to pay through multiple payment options
- Allowing them to book rides for their friends or family members
- Giving them surprises by giving discounts on rides through promo codes
- Ongoing or post-ride communication to address the issues
- Keeping the brand interactive across multiple social channels
- Enabling customers to book taxis through a phone call if they don’t have an app or they are in the low network area.
These are the few ways to empower your customers and many of the ones described above can be solved through a feature-rich taxi app solution. For getting this built, a well-reputed taxi app Development Company can help you out.
Read Also: Learn about the latest features of the passenger app, driver app and admin panel and the cost to develop a taxi app.
Start Creating Some Loyalty Programs
Nurture your current customers with loyalty programs because the survey says:
- 80 percent of your future profits will come from just 20 percent of your existing customers.
- It costs 16x more to bring a new customer up and grow them to the same level as an existing one.
- The average repeat customer spends 67 percent more in 2 years of their relationship with a business than they do in months 0-6.
Keeping in mind these stats, giving away loyalty rewards to existing customers has become an urgent need to stop the churn rate.
But how to create the right loyalty programs for riders? Distill it down.
- Referral Rewards: Gift your customer’s bonus cash to be used for their next ride when they refer a new rider to your app and the user takes their first ride.
- Incentive-based loyalty: Introduced by Uber, in this program you can give your customers a unique referral code they can share with their friends and family and both the users get a discount on the ride.
- Points System: Let your customers collect points for every ride they take. The more points they collect, the more perks they can access. Those points can be converted into cash, making them eligible to unlock further offers.
Offering such kind of reward schemes is an excellent strategy to increase the lifetime value of the customers.
Address Customer’s Grievances and Complaints on Time
Taxi app companies can maintain happy clients from day one by solving their potential problems, complaints, and disappointments quickly. This empowers clients, increase their trust in the brand, and restores their confidence. Here are a few powerful strategies to manage customer complaints:
- Openly discuss solutions that can provide quick results.
- Provide clear timelines for when the problem will be resolved.
- Be realistic and DO NOT mislead your customer if the solution is practically not possible.
- Take continuous follow-up by email, messages, or calls when the resolution crosses the progress stages.
- When a service failure occurs apologize & make immediate amendments and recover fast.
Promote. Promote. Promote
No matter whether you have worked on all the points like loyalty programs, offered incentives, coupons, discounts, and more. But does that make sense if people don’t know about it?
Your roadmap deserves a good promotion plan as well.
This can be done through advertisements across all popular social channels, running an email campaign, writing blog posts, and creating compelling landing pages—all having enticing CTAs.
Now that you recognized the ways to save your taxi app business from a growing app attrition rate, it’s time to develop a strategic roadmap with a feature-rich and advanced taxi app development solution with an interactive user experience and a soothing UI to effectively reach and keep your existing customer base intact and satisfied.
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