Although it is usually cheaper to keep or retain existing customers than it is winning new ones, many businesses still end up giving the later full attention without doing anything or much about the customers they have already. This is not wise and according to at least one view it is approximately 50% easier for retention efforts to be made regarding existing customers than it is to win new ones. Yes, it might seem very exciting to continue to add to the customer base that you already have, but this could eventually lead to losing your clients (customer attrition).
Now in order to prevent this, here are six tips you should consider using so that you can retain your customers.
Never ever underestimate the Power of Retention
Okay before going ahead to implement retention you need to first believe in its value to your business. So here are some statistics to prove this point. According to statistics from Gartner Group, which was gotten sometime back 80% of a company’s revenue in the future will be contributed by only 20% of the firm’s already existing customers. This should remind you of the 80-20 rule. Well another statistics this time from Bain and Co. says that 75% increase in profitability can be achieved by simply increasing customer retention by 5 %.
Put in place a Productive Customer Retention Program
The belief that a lot of business people have is that all they need to do in order to retain customers is to have a fantastic product/service plus provide a wonderful customer experience. Of course this is not entirely wrong if you are starting your business, but such retention will only happen for a while. This is because loyalty is not something customers owe you. It is something you must continually earn – every time. So putting in place a productive customer retention program will provide you with the know-how to spot, track, as well as custom promote to clients with the potential of becoming loyal, long-term generating sources of income.
Run relevant Promos
Loyalty program is one great way to do this. Special discount is also okay especially when this is designed to encourage customers who are in the process of defecting. Other promotions that can help retain your existing clients include sending birthday cards, promotional gifts, Christmas cards, etc.
Make an Engaging Personal Connection
Knowing how to use social media (Twitter and Facebook for example) and using it correctly to engage with your clients can help with customer retention. Here, it is all about creating a platform that allows you to engage with your customers in a very informal and social way. Yes, you will still be promoting your products/service, but this should not be obviously so. Also, promote interaction among your customers even as you continue to relate with them and allow them to build the traffic to your page.
Admit Mistakes as They Occur Accepting Responsibility
Admitting your mistakes and accepting responsibility for your actions as a business will go a long way in forming in the minds of your clients and prospective clients that you are a responsible business. It is only natural for human beings to make mistakes every now and then. Therefore, businesses which are made up of people shouldn’t be afraid of admitting their mistakes and accepting responsibility for same.
Leave your Customers with a Wonderful Feeling
This is quite straightforward. And, it can make your customers feel great just like royalty that they are. Remember your customer is King! So after every sale or purchase of a certain amount for instance you can wow your clients by giving them a valuable gift. An example could be that of a nice pen gift worth say $10 for every $100 or more purchase made.
Author Bio: Davis Miller has authored the article. He is very famous at guest blogging and article writing. In this article he provides the customer retention tips for an entrepreneur.