At first glance, you would think yes, once you have the customer’s credit card information on file, you are set and you have landed a customer for life. If this is your theory, you are treading on very slippery slope. Survey after survey has shown that Customer Care and Customer support is the #1 driver for Customer Retention.
There are many aspects to customer care:
the Customer: Customer is King is an oft used phrase. It would do all businesses a world of good to pay heed to this phrase. Research has unanimously shown that customers will take their business and their money to a company that respects them.
The relationship with the customer does not end with a close of a sale, it is the beginning. Treat your customers as individuals, using first names, providing one on one attention when they raise an issue, assuring them that their needs are #1 priority, even a simple thing as a personalized thank you note makes a difference and goes a long way in securing a customer for life. Providing the card on file convenience is just an extra that the customer would like to have, but in no way is the deciding factor in customer retention.
the Product: If your product does not live up to customer expectations, does not matter how many of the customer’s credit cards you have on file, you are bound to lose the customer. Having the card on file, may give you a month leeway, before the customer gets around to calling to cancel and be assured that they will call sooner rather than later! Agreed that having a customers card on file is advantageous when it comes to repeat transactions but more make sure your product is sound and your product is meeting the customers needs.
the Employee: Hiring and training better employees, keeping them engaged and constantly helping them learn and better themselves results in a well rounded employee. Investing in your employee leads to a better work environment. Treat your employees right and they in turn will treat your customers right!
It is for organizations to decide what they want to accomplish.