“Growth” and “profits” seem to be synonymous with attracting and recruiting new customers, but in reality they align more with your company’s ability to retain loyal customers. A 5% increase in retention of customers can grow your profits by 75% and yet, almost half of all businesses have a greater focus on acquiring more clientele.
You wouldn’t send a child to college without taking great effort to ensure they remain through graduation, so why would you acquire a customer and not put in great effort to ensure they remain loyal to your brand?
Benefits of Retaining Customers
Ease – It is a much easier and quicker process to retain current customers than it is to seek out and bring in new ones. The barriers of having to explain and sell your product no longer exist and clients may only need a little nudge to make their next order. By providing consistently great service and trustworthy products, little effort has to be made to convince them to purchase again.
Cost – The cost of retention is exponentially lower than that of advertising and outreach to potential customers. Targeting those customers who already express a strong interest in buying your product is easier and cheaper because you already know who they are and how to contact them. If you’re looking for a way to cut costs but maintain the integrity of your customer service, see what ROI Solutions can do for you.
Data – The success of your business relies on data reflecting who your customers really are and what products they seek. Spending more time getting to know the type of people who are most likely to become loyal to your business allows you to develop better relationships, better products, and better strategies to attract similar customers.
Loyalty – Taking effort in making your current customers feel important leads to loyalty and loyalty then leads to the best type of referrals by word of mouth. Potential customers will trust current customers more than you.
Where to Start Customer Retention
Loyalty Appreciation – Start small with simple loyalty appreciation efforts such as discount programs or birthday offers. This type of acknowledgement requires little expense and reminds your customers that you value their business.
Keep Your Promises – Consumers want a trustworthy and consistent service. If you say you are going to get in touch with them or offer some sort of discount, follow through. Focusing on providing excellent customer service will ensure future sales and revenue.
Know Your Customers – Utilize your whole team from the sales floor to marketing to provide feedback on what it is your customers need. Understanding buyers’ needs increases retention by inducing loyalty and preventing them from seeking a competitor’s services.
Although customer acquisition may be critical at the beginning of any business, retaining those customers is what will sustain your business for the long run. A successful company knows that their greatest investment is in returning patrons and will place just as much emphasis, if not more, into retaining those devoted customers as they do to attracting new ones.
Start taking action towards customer retention by partnering with ROI Solutions.