Why Should You Focus On Customer Retention?
We all know that employee retention is incredibly important for the success of your business. One of the biggest reasons it’s so important is the fact that it costs much less to invest in keeping your best employees than it costs to constantly have to hire and train new ones.
The same can definitely be said about customer retention. Getting existing customers to continue to buy from you is a lot cheaper than the cost of acquiring new ones. That’s one of the main reasons why customer retention is equally important as employee retention, if not more so. Investing time and money into creating loyal customers who won’t defect is well worth it.
Customer Retention Makes More “Cents”
One of the greatest myths about making more money for your business is that you need to invest more in customer acquisition. In reality, the quickest and most effective way to increase revenue is through customer retention. Why? Because it’s much cheaper. It’s five times more expensive to gain new customers than it is to keep your old ones spending with you. When you are selling to your existing customers, you are selling to someone with who you already have an established relationship.
Improving Customer Retention
It’s established that customer retention strategies are a must for any business that wants to establish sustainable growth and long-term revenue stability. What’s most important is being able to properly allow the right amount of resources towards this goal and knowing where to invest in order to see the best results.
Here are some crucial customer retention techniques that you should be looking to improve on across the board:
Take Pride in Customer Service
If there’s anything that’s going to really hurt your customer retention efforts, it’s providing subpar customer service. According to a study, 68 percent of customers leave because of poor customer service. If your customers feel as if you don’t care about them, they are going to leave.
More than anything, customer retention is all about building trust and powerful relationships. When it comes to providing good customer service and taking pride in the way you take care of your customers, you need to take a proactive approach to solve their problems.
Build Lasting Relationships
Being able to earn the trust of your customers is paramount if you want to improve customer retention. The best way to do that is to demonstrate your expertise in your field on a regular basis. If customers buy into the idea that you are a leader in your industry and that you know what you are talking about, they are more likely to stick around.
Go Above and Beyond
One of the best ways to keep your customers happy and coming back is by providing more than is necessary. Going that extra mile to show them that you care is what really helps build long-term loyalty. You need to not only pay attention to their current needs and address them rapidly, but you also need to be able to anticipate future needs and make sure that you are giving them more than they bargained for.
Nothing says “we appreciate you” better than providing incentives for your most loyal patrons. It’s not just about free stuff and discounts, there are many other types of rewards that you can offer to your most loyal customers.