Benefits Of Customer Retention
It Is Cheaper Than Acquiring New Customers
While the old belief that acquiring a new customer costs five times more than retaining an existing customer may not be accurate, the benefits of retaining a customer are deeper. Plenty of research has been done on the two options and economics favour retention as being more viable economically.
Loyalty is not only cheaper, but also offers better returns. Research shows that engaged consumers tend to spend 60% more, buy 90% more frequently and are more likely to offer referrals to the business as the only brand they can trust. This is particularly important for local businesses, where over 60% of shoppers have long-standing relationships with local shops.
Earn more referrals
Your retained customers could be the best source of new clients. If a client is engaged and satisfied with the products and services you offer, they will always refer friends to the business for such items in future. Millennials will share 90% of their brand preferences online and will not hesitate to refer a reliable brand to their networks.
For a business to grow, you need to consider customer feedback and views. This is information you can only get if your customers are engaged well. Retained customers tend to be honest and will respond to changes immediately.
Strategies For Customer Retention
Set customer expectations
The first step to earning customer loyalty is setting expectations early. You can under promise but over deliver on the expectations you offered to them. This will make them to feel well included and considered in the creation of products that help to address their needs.
Whether you are using emails or newsletters to reach your customers, you need to offer them information that interests them. Also share offers and information about upcoming events that they should take part in. Note that all the messages should not be framed to advertise.
Build employee loyalty as well
Employees are the backbone of effective management of the company. Satisfied and motivated employees will ensure all customers are served well. If you display integrity in all your operations, your employees will be proud to offer services that can keep customers happy.
Provide customer incentives
Customer incentives offer customers a reason to return to the business. This can be done in different ways; even the simple buy two get one strategy could prove effective in the long run.