The ultimate goal of any business is to retain customers. Ensuring customer satisfaction is important for maintaining long-term success. An average business loses up to 20% of its customers because of the inability to manage the relationships with them. They fail to realize that it is much easier to keep existing customers happy rather than acquiring new ones. But, to keep your existing customers satisfied you must know effective customer retention strategies. The fact that customer profitability increases with the life of a retained customer acts like an added incentive for businesses to assign more resources for sharpening their retention strategies.
The following strategies will help you keep existing customers returning back for more.
1) Don’t lose customers
Many businesses spend an enormous amount in maintaining initial customer relationship and then let that relationship go unattended. The simplest way to grow a business is not to lose existing customers for new ones. Prioritize on retaining existing customers instead of acquiring new ones. Keep your budget enough to support retention efforts as much as you’ve spent on acquiring them.
2) Add a CRM system
A customer relationship management system is an automated system that allows you to track, analyze customer purchasing behavior and communicate with them. You can send customized messages focusing on a particular issue, product or service to specific customers. This results in a more trusted bond with your customers and ultimately helps in building customer retention.
3) Focus on Customer Service
The best way to retain existing customers is through excellent service. Keep them so satisfied such that they tell others on how well they’ve been treated while they were in business terms with you. Extraordinary service ensures repeated customers whereas poor services lead to loss of existing customers.
4) Measure Customer Value
Track, analyze and manage customer value. Use your database to measure sales. Once you’ve recognized how much combined profit you attain when a customer purchases from your business repeatedly, you realize the importance of taking good care of them.
5) Build Interaction on Social Media
With the rise of social media, building engagement through social media is a good approach to retain customers. Building a frequent and courteous social media presence and using a handful of social media platforms really well is more important than to focus on dozens of them.
6) Turn complaints into opportunities
Complaints from customers are an opportunity to turn their dissatisfaction into a state of delight. Try to utilize this opportunity fully to resolve their issues and thank them with additional services.
7) Create offline events
Whether you are running an offline or online business, hosting offline events are a great way to retain customers. Make some events exclusive to your current customers and you’ve easily turned an event into a retention strategy.
The above strategies will not only help you to strengthen customer relationships but will also boost your bottom-line sales impact. Continue to add new ideas to your customer retention strategies you will see a significant change in your business.