Once you’ve found a good customer, the goal is to keep them coming back again and again… again! However, this is easier said than done. When done correctly, the numbers provide a huge return.
Just a 5% increase in retained customers can increase your business revenue by 25-95%. Plus, consider this: The cost to acquire new customers is higher than the cost to retain existing customers. In fact, it’s six to seven times more expensive. That’s because customers who have already decided to purchase from you are qualified and further along in the sales funnel. Not to mention, your most loyal customers will buy more often and spend more than new customers.
Besides strictly revenue, there are other benefits that come from retaining customers when it comes to your marketing efforts. Happy customers are more likely to engage in word-of-mouth marketing and refer new customers for you. When a customer has had a positive first-hand experience, their friends and loved ones are more likely to trust the opinion of somebody they know and love.
Now that we’ve tackled the immense value recurring customers provide, let’s dive into ways that you can begin to work toward retaining customers today.
10 Ways to Retain Customers
1. Build trust. Sometimes retention is as simple as doing what you say you’re going to do. Build trust with your customers by consistently following through on your brand promise. Live up to your values and treat your customers with respect with each and every interaction.
2. Openly communicate. Create a personalized communication plan that welcomes and regularly updates new customers. This helps keep your business top of mind and your customers informed.
3. Gather feedback. Develop a process for obtaining customer feedback. Share that information with the rest of your business and decide how to act and improve on it. Plus, it’s important to make sure your customers know that you’re listening and paying attention to the feedback. Make sure to share the outcomes of the feedback you collect.
4. Build a community. It can be helpful to form a community around your product or service. Have helpful tips, offer up a place to ask questions and get other customers involved in your community. This could be virtual or even in-person events.
5. Focus on support. It’s true that customer service and support can make or break a relationship. Focus on ensuring your team is up to date on what you expect from your customer service team. Establish how you expect your team to handle specific issues that may arise.
6. Reward your customers. Celebrate your customers’ loyalty with discounts and freebies when they hit a certain number of purchases or dollar amount spent with your business. Who doesn’t love a reward for loyalty?
7. Thank your customers. This may seem obvious, but saying ‘thanks’ goes a long way. Send thank yous, anniversary and birthday cards and other personal touches to show your customers how much they mean to you. Host a customer appreciation week. The sky’s the limit with how you want to show your thanks.
8. Send gifts. Surprise and delight your customers with spur-of-the-moment, branded gifts. This shows your appreciation, and it helps market your business! Give them something that’s useful and has lasting power.
9. Upsell and cross-sell your existing customers. Not only does it boost your revenue, but it also personalizes the customer experience, provides unparalleled convenience to your customers, allows them to leverage a complete solution and enhances trust and loyalty. It’s a win-win for everybody.
10. Use email automation. Send a company newsletter. It’s a simple way to remind customers of your business and to share your best offers with them.
Put these tips into action
When you’re ready to put these tips into action, consider reaching out to one of our marketing strategists who will provide specific campaign recommendations designed to help your business retain its customers and increase revenue.