There’s not a lot better than sealing the deal with a new customer. Or is there? Did you know you can save time and money by retaining an existing consumer? Or re-engaging a previous consumer? That’s right; customer retention is a great strategy that can save your business time and money.
Why Is Customer Retention Important?
For so many reasons! Most companies put so much focus on customer acquisition. And new clients are always worthy of pursuit. But here are some customer retention facts to sink your teeth into:
- Companies spend over $50 billion a year on loyalty programs
- It costs five times more to acquire a new customer than it does to retain one
- Engaged consumers buy 90% more frequently and spend 60% more
- Loyal customers are more forgiving.
Are you convinced yet? Then let’s keep going.
Understand the Churn
All businesses, no matter what, experience customer churn. Consumers leave, move on to other products or services. It’s a natural part of the business. However, what’s important is tracking this.
If your business doesn’t monitor and track where customers leave and why you’ll need to start there. Knowing your customer retention rate and churn rate is the best way to determine how well your business is doing. And where you’ll need to make adjustments.
It isn’t enough to know your retention or churn rate, though. That’s just a valuable figure to compare. Understanding and tracking the reasons behind the consumer churn is what will guide you to success.
Encourage Customer Feedback
Businesses can’t survive without customers, so why aren’t we more active in asking them what they want? What do they like? Do they want to see something new? Your customers are your greatest resource. Use them!
Create a customer retention feedback loop that helps you see your business from your audience’s perspective. This can help you make changes your consumers are hoping for. But don’t stop there – follow up with your consumers. Let them know their feedback was listened to and taken into consideration. Make sure you follow up with negative reviews and ensure they know their voice is heard.
Become an Industry Expert
Consumers want to buy or get services from the best in the business – and that should be you! But how can you convince them of your expertise? Consider showcasing your knowledge by teaching educational workshops, dinner seminars, or webinars.
In addition, other avenues of getting your voice and experience out there can help lend to your reputation. Consider sharing social posts with educational content. Or blogs with tips and tricks to your industry. Whatever your audience might be looking for, provide it!
We do business with people we trust. Consider if you ordered a bike from a company that arrived broken. Trust would be lost, and you’d most likely return it and never return to the company again. Why would your business be any different to the consumer?
But trust goes much farther than just the service and products you offer. Does your service back up what your mission statement says? Do you follow through on your promises to your consumers? Are your customers loyal to your brand and business?
Reward Loyal Customers
Who doesn’t love a surprise sometimes? While a formal loyalty program might not be necessary, there’s no harm in showing your best customers some love. Even small tokens of gratitude like a logoed tumbler or pen or a discount on upcoming services can significantly impact your customers. Make sure they know they are valued and appreciated by the company, and they will remain your cheerleaders. Remember – there is nothing greater than happy customers.
Never Stop Marketing
Unless you get to a point where you can’t handle any more customers, and you’re experiencing almost zero churn, you’ll always be on the lookout for more prospects. And that means marketing.
Marketing isn’t just important for bringing new customers through your door. It also helps re-engage previous customers. Marketing encourages loyal customers to purchase more or ask about other services. It ensures your business stays top of mind.
The sales funnel is constantly changing and shifting for all businesses. Don’t neglect your marketing efforts if you want customer retention and acquisition.
The Bottom Line
Where you dedicate time and energy affects your customer retention and acquisition processes. Multichannel marketing solutions can put you in front of more qualified prospects daily. But more importantly, these solutions can help solidify your business acumen to your current customers. And help you get more out of consumers that are already loyal to your brand.
At LeadingResponse, we have the dynamic marketing solutions your business needs. From live events, direct mail, webinars, website retargeting, educational workshops, lead generation, and more – our team of experts is here to help guide your team to new heights.