All business owners know how important a flow of new customers is. New customers are a sign that your business is gaining traction and visibility to consumers. However, what a lot of business owners don’t know is that existing customers can be more valuable. Loyal customers that frequently spend money at your business result in a greater ROI (return on investment) than new ones do. Studies show that even though returning customers represent a lower percentage of your customer base, they account for over 60% of your sales. The biggest struggle can be figuring out how to create that solid base of loyal customers. Here are some simple ways that you can improve customer retention in your business.
Whether you are a large corporation or a newly opened business, being personal with your customers is going to keep them coming back. By establishing a strong relationship and trying to understand your buyers, you are showing them that you are more than just a “business”. This makes you someone they can trust and a place worth spending their hard-earned money on.
You can achieve personalization on various levels such as in person or online. An example of doing this online would be to provide customer service via social media. These days, you can see large companies interacting with their customers on popular platforms like Twitter, Instagram and Facebook to address concerns and complaints. This adds a level of human touch that your competitors might not be providing. Some businesses even send their loyal customers birthday messages that typically include a free item or a special discount.
Providing a personalized experience at a physical location can be something as simple as recognizing your frequent customers and addressing them by name. This makes them feel like they are part of a community and that their business is going somewhere they’re familiar with.
Loyalty and Reward Programs
If you want your customers to feel like your business is worth spending money on, utilize loyalty and reward programs. You will be able to offer incentives such as discounts and special deals for those that regularly spend money on your products and service. Consumers are 82% more likely to shop at stores or restaurants that have some sort of loyalty program. These programs show your customers that they have something to gain by sticking around and spending their money at your business. This then results in more sales and ever growing relationships between you and your customers.
Not only does this improve your customer retention, but it saves you money. Regular customers are less expensive for businesses because they are already don’t require money to be spent on marketing and advertising. This is because they are already interested in what you are offering. You can save even more money if the loyalty program you implement is free to both you and your customers.
In today’s age, everybody wants their products and services given to them in a short amount of time. Consumers don’t want to feel like they are wasting their time on anything. This means businesses are constantly having to get innovative with the way they run their operation. Outdated systems and programs could deter a whole demographic away from your business.
Some changes you could make are adding an order online feature to your website or app. If you don’t have a website or app, making one is a step in the right direction. Another option could be to have a social media presence that opens the floor for fast responses to customer concerns or complaints. This is appealing to customers who don’t want to call your location or customer service line to address an issue.
The main goal is to identify what your customers want and create systems that work for them. A new level of convenience in your business will keep your customers coming back.
Maximize the Customer Experience
Making sure your customer’s experience is a memorable one doesn’t have to be hard. This can be achieved by many ways that don’t involve advanced technology and spending money. One of the first things you should focus on is having a dedicated team of people working for your business. Your team needs to be on the same page when it comes to what the customer experience should look like and how they can provide it.
Another strategy is to provide a quality product. If you’re familiar with the “quality over quantity phrase” then you know what we’re talking about. Create a reputation for business that involves being friendly to your customers and providing quality service and products in a timely manner.
Overall, customer retention can be increased by treating your customers the way they should be treated and listening to what they want. This doesn’t have to be something that you need to dedicate large sums of money to. Having a solid team that cares about your customers is a step in the right direction, and everything else will follow with that.