Why customer retention strategy is important? All businesses need customers in order to survive, and business owners will do everything that they can to acquire them. Small and large businesses alike advertise themselves locally through print, local media and the websites. They hire web developers and search engine optimization experts to design a good website. Some seek the help of publicists to make sure that product or store launches are well-attended. They sponsor events to increase visibility.
While many companies focus on acquiring customers, most do not do anything to retain your clients . Many owners do not see the need to spend time, effort and money to retain the customers. They usually ask why they need to put effort in customer retention strategy when they are already acquiring new ones successfully. While this may sound logical, it is unfortunately a wrong thought that can lead to business loss or even failure. It is just as important to keep customers as it is to find them. The question people would ask though is why put effort in customer retention strategy?
No Acquisition Cost:
It takes money, time and effort to acquire new customers. The expense needed depends on your industry, the number of competition that you have and the type of advertisement you plan to have. Your expense can range anywhere from several cents to several thousands of dollars, and you can spend hours or days in doing so. Retaining old customers does not require the cost needed to acquire them, so you can actually save more money. To simply put things, it costs five times more money to get a new customer than keeping a new one.
The Art of Repurchasing:
Studies show that customers who have already bought from your business have a much higher chance of buying from you again.
Word Of Mouth:
Customers who are happy with any service are more likely to recommend the service to other people. This benefit is perhaps one of the most economic and efficient way for others to find out about your business and acquire new customers, too
With these in mind, you can really say that customer retention is worth the effort. So, instead of just taking time to win new ones, build a sold customer retention strategy to keep the old ones, too.
You make a sale and get a new customer – that has got to be good right? But do you know what is even better? It is when they come back the second, third and fourth time around to do business with you again.
But, there is an art to getting your clients to continue with your service – and this is why you need to ramp up your client retention strategies. As a small business owner, there are many things that you can do to improve customer retention strategy and have them return to you again and again and again. Here are some of them:
Keep Your Customer Service Top Notch:
Good customer service is one of the most important strategy among client retention strategies. Did you know that more than half of all consumers are willing to pay more money for better customer service? True, customer service will always make or break your business. Always seek to provide stellar service because this will benefit you in the long run and will encourage your clients to choose you over cheaper alternatives.
Admit Mistakes and Address Issues Immediately:
A study shows that 84% of customers will tell their friends (and even blog about) a negative experience with a certain business. Imagine how many potential customers you can lose if this happens to you. The key is to admit the mistake and address the complaint as soon as possible – and your client will most likely remain loyal and tell their friends about the service.
Remember Your Clients and They will Remember You:
Customers are just regular people, too. They are human beings who want to feel valued and appreciated. Show your loyal clients that you remember them by sending personalized greeting cards. Christmas is a good time to send cards but if December seems too far away, you can always start a customer appreciation mailing program anytime.
Learn about Your Client’s Needs:
One of the main reasons why clients stop availing certain services is because they no longer need them. People’s needs evolve over time, so you may also want to improve your products or services to cater to their new needs.
Keep Them in the Loop:
It is also good to keep your clients informed about new things going on in your business. Do you have new services? Have you updated your products? Do you have a new branch that is somehow closer to them? You can keep them informed through in-store presentations, brochures, regular e-mails or even print newsletters.
As a small business owner, you do not have to spend thousands of dollars on your client retention strategies. These are simple things that you can do (most of them for free) to keep your customers happy and coming back to you.