How to Retain Customers in Business and avoid going broke. The dynamics of the internet say you must change your ways or fail
Estimated reading time: 5 minutes
Table of contents
Customer retention and the facts
The cost of acquiring a customer can not be compared to the much lower cost of retention.
Add to that lifetime values and you will see that retention is an important factor in customer management.
Supermarkets and large retail chains work the retention concept as hard as they can by offering every incentive to returning customers.
The use of hard mail alongside rewards cards and SMS marketing covers a wide expanse of contact media.
How to keep customers coming back?
Consistent and well-branded contact with exclusive offers and recognition of the person as an important part of the process work together to maintain all the elements of touch.
As individuals, we all like to be appreciated and recognized for our loyalty.
It all comes down to touch, the more often they see your name the more likely they are to return.
Online business marketing ideas explained in full
Client retention strategies
Where we are recognized is where we shop We all shop as individuals and not just customers.
My wife does the grocery shopping at a local store. I questioned why not the big chains where prices were cheaper. Her answer was that the bread man loves her the check-out chicks look after her and the boss always says hello as he passes.
Your business should be the same. The greater the personal contact the better the result.
Reward cards are the next touch that is also personal. My local liquor store will usually give me my balance and ask if I want to spend it or roll it on. Depending on the amount I make a decision. It keeps me coming back.
Going one step further are VIP cards. These are for your top 10% of customers who get those extra benefits. This ten percent will be as high as 40% of your sales so giving them extra benefits is worthwhile.
Instore promotions are also a great contact medium and encouraging participation is essential. Email or SMS notification will gather a following.
Your association with local sporting and social clubs provides a lot of one on one contact and provides the opportunity to donate gift packages. The return will be worth the effort.
7 Ways to keep customers for life
Customer loyalty is built around the adage of Know, Like and Trust, and when you have these three solved you are well on your way to success.
| 1. Provide great service. | Your employees interact with customers on a regular basis. |
| 2. Make it personal. … | Use names as often as possible |
| 3. . Stay in touch. … | Email, newsletters, SMS, flyers |
| 4. Offer rewards. … | Your rewards cards |
| 5. Celebrate your customers. | Make them part of the team |
| 6. Give back to your community | Sporting, social, or arts |
| 7. Don't forget the little things. | Thank you |
Unfortunately, these are all must-do items that can easily be messed up.
Life time value of a customer
A single customer can be a significant part of your future when you recognize the contribution they make to your business.
Take for example a Super Market customer that buys the weekly groceries spending about $300 a week. Or $15,600 a year and a ten-year return of over $150,000.
Can you afford to offend a customer like that in any business?
Customer service
Customer service is an antiquated idea that a department exists to mop up the problems caused by bad service. If you need such a department you are doing something wrong.
A new department called returns has taken over part of this service because the big companies understand that returns are part of life. No more making excuses or lying for the sake of your conscience, if you don't want it, bring it back. It is far cheaper to satisfy a customer than fight over a few dollars
Conclusion
An important subject that starts at the top. Influence flows down so if you don't treat this with respect then similar values will be inherited by your staff.
Furthermore it will be on disply to everyone and the pain will creep in bit by bit until it is too late. If your customers are not returning then there is a valid reason, they were not satisfied with the treatment received
How to Retain Customers in Business by Peter Hanley
