Remember that time you went to a new clothing store, and the employee’s on shift were helping you try on different outfits and complimenting you saying, “That looks amazing”? Then ten minutes later you’re leaving the store with a big smile on your face and a shopping bag full of clothes. Sound familiar?
That is how power of a positive customer experience translates into long-term retention. As an owner it’s a no-brainer that retaining your clientele is an important aspect that will increase your profitability and create capital for your business. According to Harvard Business Review, it’s five to twenty-five percent more expensive to attract new customers to your business than keeping the clientele you already have.
Take this into consideration: Which scenario would you rather have?
A customer coming into your store once a month and spending $20 (on average) for a year.
A customer coming into your store once and spending $200.
Ideally, yes, most owners will say “I would want both,” but if your answer was “B” then you have retention issues. Albeit customer “A” provides less value “up front” but offers more long-term value ($20 x 12 months = $240 per year), as they’re consistent revenue coming to your business and will act as a “walking, talking” advertisement for you (referring friends and family to your store). Then all of a sudden, that “$20 up front” has turned into five people spending the same amount of money at your store per month for twelve months and you’ve now multiplied your revenue by 500 percent yearly ($20 x 5 customers = $100 per month / $100 per month x 12 months = $1,200 per year).
Since you need to keep your customers happy to continue selling your products/services, we have five effective ways to keep your clientele coming back again and again.
- Great Customer Service
Your employees will be the second impression for your brand in most cases if new customers encounter them before seeing your storefront, logo, or company website/signage. A positive experience with your staff will set the standard for the entire company and how it functions. Knowledgeable and friendly employees will have a better chance of convincing your customers to come back without knowing, as they showcase the strengths of your business compared to your competitors.
According to Pulse, seventy-one percent of people break the bond with a business because of bad customer service. Happy customers would not only refer your company to friends and family, but you will also turn into their “go-to brand” when they need your products/services.
- Reward Your Loyal Customers
Customer interaction is a pivotal element to retaining customers, and rewarding your loyal customers is crucial to ensure they stay as loyal customers. A reward is a way to create an emotional attachment to your brand by making your clientele feel special. Rewards such as discounts and coupons for a selected list of loyal customers will not only increase your sales, but it will tell them their loyalty is noticed and valued. You can customize those rewards towards the individual by addressing them with their name or incorporating a letter that highlights their interests. It’s essential you understand who your loyal customers are as they are the foundation of profitability for your business.
- Keep in Touch With your Customers
In today’s digital world, social media has turned into the primary medium to keep in touch with your customers. Facebook, Instagram, Twitter, and now even WhatsApp have emerged as the leading platforms of social communication to keep people up-to-date about products and services, as well as monitoring their overall experience with your company.
When you target your social networks towards your client’s interest, you can turn that interest into a real purchase. Engaging through social media, you’re able to show that your business listens to its customers and takes into account their opinion. Platforms such as Instagram, Twitter, and Facebook, give your company the perfect opportunity to show a personal side to your brand, strengthening the bond you have with your clientele.
- Solve your Customer’s Problems
When a customer has a problem with your products or services, as a business owner, you need to ensure you can solve the issue efficiently. Addressing issues effectively will show off your overall professionalism and build trust with your customers.
Increasing the reputation of your business will depend on taking responsibility for your mistakes, as it goes back to the classic but true saying, “the customer is always right.” This process is also a great learning curve for your brand as it will help determine areas for improvement and how to prevent similar situations in the future.
According to Pulse, seventy-five percent of customers think getting in touch with an agent over the phone or through an online chat takes too long. Ensure that people can speak to someone who’s “real,” friendly, and someone that’s going to help them. We live in an age that’s built around instant-messaging, so taking the approach of getting customers to go through your Q & A section or contact form will turn away your modern day person.
- Be Appreciative
As the classic saying goes, “it takes two to tango” – when it comes to any relationship showing appreciation for the other party is a humanistic way to bolster a customer relationship. Some ways to show your appreciation; create unique thankful notes with every purchase, follow-up emails to store visits or even a simple “thank you, have a great day” goes a long way and shows reciprocity for the money they spent on your products/services.
Taking a couple of minutes to highlight to your customers how significant their contribution to your business is will not only tell your customers you care about them, but it will convince them to come back to your company instead of going to your competition.
According to Invesp, increasing your customer retention rates by five percent will boost your company’s profitability by twenty-five to ninety-five percent. Further, the global cost of a lost customer is $243, according to Econsultancy.
The company that has the best customer retention will always be the leader in the respective industry. We love making them special, and we’re here to help you to keep your customers and gain new ones by improving your company’s online visibility.
Our Instant Traffic and Social Media Packages are going to bring your business one step closer to your fiscal year’s goals. Our team of account managers dedicate will give professional advice every step of the way so that you not only receive the return but also learn for yourself what’s effective in today’s dog-eat-dog online market.
Contact us today and find out how!