Co-Founder and Managing Director at Edkent Media, a boutique digital marketing agency servicing local, startup and enterprise companies.
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Many businesses focus on gaining new business, but I’ve noticed that not enough focus on customer retention. Retaining the customers you have is just as important as gaining new ones. Existing customers typically account for a greater ROI — it can cost five to 25 times less to keep them than to attract new ones. This is because potential customers require an introduction to the brand, its focus and its offerings.
It may take several attempts to convince prospects to try your products or services. Moreover, you’re much more likely to sell your products and services to your existing customers than to new prospects.
When new companies start up and customers see their advertising and promotional strategies, they may be tempted to try them out. This is why businesses need to emphasize promoting customer loyalty and consider it as an ongoing part of their daily operations.
Fortunately, some proven customer retention strategies can provide you with good results, if you execute them in the right manner.
Solicit Genuine Customer Feedback
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Feedback is a vital part of keeping your products and services essential to your customers. You may not even know that some unhappy customers have left until somebody notices that they haven’t called in a long time. In this case, you might have lost the opportunity to find out what made them leave.
One of the easiest ways to solicit feedback is using social media. Customers may not always call with feedback or suggestions, but many of them do use social media to leave feedback for their newly purchased products or recently availed services. Use Twitter or Facebook to encourage customers to post opinions or suggestions about your products or services.
Customer satisfaction surveys are another way to judge your company’s performance. Sending a quick survey a few days after product or service delivery will provide you with all the crucial information.
Remember, customers are more likely to respond to short surveys rather than long, time-consuming forms. If you don’t get the desired response, you can add an incentive like a gift card or entering them into a drawing for a cash amount.
If your company makes a change based on a particular customer’s feedback, put them in the spotlight on your social media channels. This will make your customer feel appreciated.
Build Bonds To Cherish: Connect With Your Customers
This is something many business owners and salespeople already know but fail to keep up with. Let your customers know that they aren’t just figures in your accounting software and that you care about them along with their business and success.
Be proactive in finding out what problems they are experiencing in their own business. Look beyond and see whether there is anything your business can do to help. Tailor your services and offerings to customers’ preferences. Remember, reaching out to your customers strengthens your relationship and boosts brand loyalty.
Always Apologize When Things Take A Wrong Turn
Always be apologetic when the situation calls for it. Whether it’s a defective item, a billing error or another problem, apologize to the customer. Thank them for bringing it to your attention. A simple complaint may also alert you to a problem that needs attention. This may include situations like malfunctioning production machines, corrupted software or an employee who is not efficient enough. A customer is more likely to trust you when you are honest and admit your mistakes rather than ignoring them.
Try engaging your customers, and respond to them in a timely manner. This will make them feel connected to you and boost your retention rate in the best way possible.
Maintain A Communication Calendar
Keeping a communication calendar is one of the most beneficial customer retention marketing tactics. Whenever you communicate with a customer, log it on the calendar. Keep track of when you need to follow up with them, too. This will keep customers from being forgotten and let them know that you value them.
Also, consider using social media to keep track of special events that customers are involved in, or awards they’re receiving, and log these on your calendar too so you can make congratulatory phone calls.
Always make sure you’re up-to-date on who to contact at a company. It doesn’t make a good impression when you call and ask for someone and end up being told that they left six months ago.
Be sure to keep notes on all of your customers’ problems and the solutions you provided them with as well. This can help you identify the ongoing problems that need to be addressed with the utmost care.
Implement A Customer Loyalty And Retention Program
Always reward loyal customers. Shower them with discounts or samples or your newly launched products. Simple thank-you cards also can go a long way when it comes to retaining your customers.
Many companies use customers’ social media pages to find out more about their hobbies and interests. Therefore, try sending relevant holiday gifts instead of holiday cards to stand out. Sending an assortment of gourmet coffees, candy or cookies can also boost your goodwill.
Building customer loyalty is a big part of keeping your brand relevant. It’s not just about making sales; when you build relationships, the orders will follow. Remember, repeat orders mean steady business.
When the economy falters, your new customers may rush to go elsewhere to try to get a better deal. It’s your existing customers — the long-lasting ones — who will stand with you because they know you stand with them.
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Author: Kenny Tripura, Forbes Councils Member
