Businesses work really hard to survive these days. The competition is cut-throat and getting customers is getting more and more difficult. While businesses have become heavily dependent upon leads and sales, they pay less and less attention to their loyal customer base.
In all truth, lead generation is essential, but so is retaining your existing customers. New leads might not bring in recurring sales or brand loyalty like existing customers. GrooveHQ’s profits went up by 95% when they improved their customer retention by 5%. So, relying heavily on new leads might not be the best idea. We have a list of things you might do to retain your customers and gain a loyal customer base to grow your business. Let’s have a look:
1. Value and Appreciation
Customer acquisition is neither easy nor cheap. It is important to retain customers you have spent loads on acquiring. Studies also show that existing customers bring in 68% of the sales. Showing your customers, some value and appreciation will build their trust. Relationship marketing is a critical element of customer retention. A study found that 20% of the customers are lost due to a lack of a cordial relationship. Customer value brands that take care of their needs and understand them. Small tokens often make a significant difference. A small handwritten note, special packaging, or something beyond the regular service will make them feel special. They will feel like they are a part of something big and purposeful.
2. Feedback and Complaints
To make your customers feel like they are a part of your brand, feedback, and complaints are essential. Feedback allows your customers to share their thoughts and views. This will help improve your service and make your customers feel like they hold a special place in your company.Apart from that, complaints will give a voice to your existing customers. This will let them know that they are heard, and you value their opinions. Moreover, you can solve their queries faster so they can engage more with your brand.
3. Loyalty Cards
A customer might be shopping from you for a long time and might not feel like you value them. For that, you can introduce loyalty cards and vouchers. These loyalty cards may give them extra points for each time they buy something from you. And once they have a certain number of points, they can get a free item. This will encourage recurring sales and build trust in your brand.
A gift voucher may be great, giving them a one-time opportunity to get a free item from your store. A better way to do this may be using a calendar. A recent study found that organizations that interact with their customers more than 10 times a year make 300% more profit than those who don't.Using a communications calendar will help you keep in touch with all of your clients and communicate with them frequently, so they feel valued.
5. Measure Customer Value
Knowing the value of your customer is very important. This is like knowing your most important clients from less important ones. A metric is known as Customer Lifetime Value or CLV. It measures the most critical asset of your company: The value of your customers.Once you acquire a few customers, some will make a few purchases; others will be coming again and again for repeat purchases. The people who make repeat purchases are your lifetime customers or VIP customers.These customers will help market your product and generate sales, so taking care of them above all others is essential. They are the ones you are trying to retain to ensure a stable revenue.
These are only a few of the numerous customer retention strategies that will help grow your business. We hope that these would help raise the business’s profitability and increase sales.