Is your relationship with your customers like a one-night stand? Do customers seem to visit once and never come back? If so, you should rethink your current customer retention strategies.
Many businesses spend a lot of time and money on standard advertising that is focused on getting new customers and forget about nurturing those they already have. Unfortunately, those customers forget about the business too. The solution is customer retention marketing which is a strategy to keep current customers patronizing your business regularly.
Customer retention strategies are usually more effective and less expensive to implement than new customer acquisition strategies. This is because your customer already knows who you are and they know the value that you offer. If they were satisfied the first time they bought from your business, chances are they will want to buy from you again-or referring someone else.
You are still not convinced? Let's look at why retaining your current customers is important:
Standard Advertising Is Expensive.
It costs five times more to acquiring a new customer more than retaining an existing customer. Research shows that 5% of the customer retention strategies can increase your profits from 25- 90%. So, it is better to consider customer retention a priority in your business.
It Increases Profitability.
Did you know a customer profitability rates tend to increase over the lifetime of the long relationship? This is because existing customers are 50% more likely to try new products and spend 31% more when compared to new customers. An old customer will always spend again if he or she is fully satisfied with your service and product. The business must know how to satisfy the customer for a long-term relationship. Customer retention in a business leads to more and more profits.
Customer Retention Leads To Word-Of-Mouth Advertisement.
A repeat customer comes back again because they have liked the experience and the product or service you offer. For example, a restaurant can delight a customer with delicious meals and great service over time. This happy customer is open to sharing their experience and very likely to recommend the restaurant to family and friends.
It Can Increase Customer Satisfaction.
A customer retention plan results in improving customer satisfaction. This is because the business will meet and even exceed the customer needs. An example of an automotive car salesman can remember the customers' preferences for a vehicle they would like to buy and recommend those that best serve them, not just make a sale. The customer leaves happy with a car that is relevant to their lifestyle and will most likely come back for additional services.
It Creates An Engagement Of Loyal Customers
When you have a successful customer retention program, the social media pages of the business are bound to get more followers from loyal customers. By adding value to your social media posts with tips and helpful content, your loyal customers will share your posts with friends and make comments on your timeline. This engagement boosts customer retention and helps them feel like your partner.
Why Don't Businesses Do More Customer Retention?
The number one reason a business does not actively retain its customers is that it has not developed an actual customer retention strategy. Retaining customers also means that you keep in touch with them and be actively involved with their experiences.
With proper implementation and execution–you can launch a successful customer retention strategy using this short guideline.
Retention can be improved if the front-line employees, those in direct interaction with customers, understand the importance of a customer to your business. This happens with training. Many training programs concentrate on technical skills and completely ignore the soft skills, which include listening, understanding the customer, resolving complaints, and empathizing with the customer. The way employees treat customers is every bit as important as their mastery of the technology required by the business. These employees need to be trained and empowered to provide solutions to customers. This will lead to more satisfied customers who become repeat customers.
- Give Personalized Services.
A simple action of this can be done by a restaurant hostess who recognizes a regular guest on arrival by greeting him warmly and directing him to his favourite table. This makes your customer feel special.
- Involve The Loyal Customers In Your New Product Development Process It is important to get their perspective on a new products ability to meet their needs. It can also help in improving your existing products or launching new ones more successfully.
- Be Appreciative.
Be sure to identify the most loyal customers and send them personalized “thank you” messages. To make them feel even more important and appreciated, give them incentives and coupon codes.
- Develop A Customer Loyalty Program.
This sort of program appreciates repeat customers with attractive incentives to come back and bring referrals. Examples are discount codes, store cards that can redeem points.
- Be Proactive In Your Customer Care.
An example is a restaurant providing reserved clients with a digital menu to order before arriving at the restaurant to save time waiting for meals.
- Offer Only Proven And Quality Products And Services.
The essence of retaining a customer is a great experience. Only provide services that best meet the customers' needs with the least friction or delays. If launching new services, make sure they are as seamless as possible to avoid frustrating and losing a customer.
- Develop The Habit of Calling Back Clients.
It is important to hear the feedback of your customer’s experiences. Many customers leave without sharing their complaints which could have been resolved with a call. The business not only misses out on opportunities to retain customers but also to improve or change a problem area.
In conclusion, a “one-night stand” customer will not help grow your business in the long run. Your business should start a customer retention strategy sooner rather than later. Businesses rightfully work hard to gain new customers, but they should also strive to develop loyal customers into lifetime customers and reap the long-term rewards by using these customer retention strategies.