9 Tips for Improving Customer Retention
Customers are the lifeblood of every business and significant effort is expended to attract them. However, customer retention—keeping existing customers satisfied, engaged and repeatedly accessing your business is even more important. As business management expert Peter Drucker said, “The purpose of a business is to create a customer.” Author Michael LeBoeuf added, “A satisfied customer is the best business strategy of all.”
What Is Customer Retention?
Customer Retention refers to all the actions that a company takes to keep a customer from defecting to another company or simply dropping out. Said another way, it is the process of increasing the number of repeat customers and it also means maximizing value from your customers.
Why Is Customer Retention Important to Your Business?
Efforts to achieve customer retention produce these beneficial results:
- You save money on marketing because you are working with a current customer who is familiar with your products or services. You will also need to spend less on customer support for them.
- Repeat purchases from current customers drive more profits. They are more likely to buy, and they buy more frequently than new customers.
- Repeat customers provide effective word-of-mouth advertising and are more likely to refer to other customers.
- Repeat customers often provide very valuable feedback.
- Loyal customers are less price-conscious and are willing to pay premium prices and spend more.
9 Tips for Improving Customer Retention
- Set high standards for customer contact: fast, friendly, consistent service.
- Hire great people for customer service, those who are pleasant and engaging.
- Follow-up with customers so they don’t forget you. Build relationships and build trust.
- Make it easy for customers to connect with you.
- Keep your customer experiences fresh and appealing.
- Create a customer loyalty program to incentivize repeat business.
- Provide customer surprises.
- Listen carefully to customer concerns.
- Show customer appreciation.
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