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.