Customer Retention Strategies to Help Make your Business Grow
A loyal customer is as good as money in the bank. It makes excellent business sense that you do all that you can to keep the customers you already have. Finding new customers is usually more expensive and more difficult, so a customer retention strategy can be a solid foundation upon which a strong company sits. It can also be a good strategy to not only maintain your bottom line but to grow it as well. To have a sophisticated strategy you need to go beyond the basics of good customer service and good products and execute a few advanced techniques and marketing tools.
Connect With Your Customers
A loyal customer believes on some level that your company shares his or her values. This can be something fairly nebulous such as “responsibility,” or something a bit more specific such as protection of the environment. It is a good idea in your advertising or your company’s presence anywhere to stand for a core value. Concepts such as fairness, quality, respect and integrity will appeal to many people and can develop a strong bond. If you don’t stand for anything, your customers might be more fickle and more likely to spend money elsewhere.
Craft a Powerful Message
Words are powerful and help build lasting relationships, a powerful tool for customer retention. Entice existing customers with words such as “bargain” or “new and improved” or “enhanced product” to help them feel good about a purchase. It is important that a customer feels that he or she has made a smart buy. On the other side, minimize cost increases or added fees with language such as “only a bit little more” or “a small fee” to reduce disappointment in the buyer.
Thank and Value Your Customers
No one likes being taken for granted. This is true in personal and in business relationships. Recognizing a loyal customer and thanking them for his or her business can go a long way to generating a dedicated client, and can even spur a person to buy more. Surprise emails and thank you notes to valued customers are a simple way to build up loyalty. Many people are looking for a personal connection before they pull out a credit card, and this is often easier to accomplish with a familiar customer.
In short, it can be hard work to increase customer retention enough to grow your business. The good news is that research shows this extra effort pays off with your existing customers at a much greater return than it does for attracting new customers.