Customer Retention Strategies – How Customers Can Decide The Fate Of Your Business
It is a fact universally acknowledged by most business owners that the easiest way to grow your customers is not to lose them. For any business, sales are its lifeblood and for increased sales, customers play a vital role. According to a research, the average business loses around 20% of its customers annually simply due to the fact that they fail to attend to customer relationships. In some industries, this leakage is as high as 80%. The cost, in either case, can be staggering but few business organizations truly understand the implications.
Suppose two businesses, one that retains 90% of its customers, and the other that retains 80%. If both the businesses add new customers at the rate of 20% every year, the first will have a 10% net growth in customers/year while the other will have no growth at all. Over a period of 7 years, the firs firm will virtually double while the second will show no real growth. Every other factor remaining equal, that 10% advantage in customer retention will result in doubling of customers every seven years without you doing anything else.
Simple Customer Retention Strategies by the Experts
With the current business economic climate in the nation and the large number of businesses taking resort to either SBA loans or debt consolidation loans from private lenders, it is clear that the commercial environment is not very positive. While most business owners wonder about the reasons behind the soaring debt, they forget to take into consideration the vital fact that they’re losing customers, which is perhaps leading to more debt in the long run. So, what are the simplest methods of retaining your customers? Some experts have listed down a few strategies to retain your customers. Here are some of them.
1. Reduce Attrition:
Virtually, every business loses some customers but very few business owners measure how many of their customers are gradually getting inactive. Most businesses, ironically, invest huge time, effort and expense in building that huge customer base and the relationship with them. Then they let that relationship go unattended, in some cases even losing interest as soon as the sale has been done. Even worse, there are situations when a customer is abandoned as soon a problem occurs. Remember that the easiest way to grow your business is not to lose your customers and once you stop this gap, it’s possible to double or triple your growth rate.
2. Sell and Keep Selling:
There are so many people who do an excellent job of striking the initial sale and then they drop the ball and get complacent, ignore the customer as they start chasing more business. Your selling has just begun when someone makes the initial decision of purchasing because everyone is susceptible to buyer’s remorse. In order to lock in that sale and continue with repeat business that will flow from it, you require striking while the iron is hot. Thank them and remind them again why they’ve made the right decision.
3. Bring Back the Lost Customers:
Don’t you think that there’s little point in dedicating huge amount of time in generating new customers when 25-60% of your dormant customers will be receptive to your attempts to regenerate their business if you approach them? It is always better to reactivate customers who already know you and your product and this is one of the easiest ways of increasing your revenues. Contact them again and remind them of your existence, find out why they’re not buying from you anymore, try to overcome their objections and demonstrate that you still value and respect them.
4. Special Customer Care Service:
You always have to keep your customers so satisfied that they will tell others how well they have been treated when doing business with you. If you can move the service or the product that you deliver into the realm of the extraordinary by delivering more than what is expected, you can certainly a step forward in retaining your customers. Key facets include dedication to customer satisfaction by every employee, offering immediate response, no buck passing and going above and beyond every expectation of the customers.
5. Courtesy System:
Courtesy system is a powerful system that enhances the interpersonal skills of your team and changes the spirit of your organization. Speak to colleagues pleasantly and politely without parody or sarcasm. Treat them at least as well as you would want them to treat your customers. This will help your team to feel worthwhile and important. This results in warmer and stronger relationships and long term bonds with your customers.
If small financial problems are marring the growth of your business and you feel the immediate need of some change, pay close attention to your customers. Try your best to retain your customers by following the above mentioned tips.