Customer Retention — The Importance of Loyalty
Keeping
customers makes good business sense but it's not always easy. Here are some
tips on how you can keep your customers coming back to your business
You have spent a lot of
time setting your lines, enticing your catch and reeling them in. But now
you've got those customers, how do you keep them?
The downfall for many
companies is that they don't know how to
keep customers. It seems this is the pot of gold at the end of the rainbow
and few firms find it. But why bother? What are the real advantages of customer
retention?
Studies across a number of
industries have revealed that the cost of keeping an existing customer is
around 10% of the cost of acquiring a new one. In other words it costs you 10
times more to acquire a new customer than to retain one. Economically it makes
pretty good sense.
Putting together a good retention strategy will also lead to
increased customer profitability, as the longer the relationship, the lower the
account maintenance cost and the more their buying power increases.
Spread the Word
There are other benefits to
fostering a lasting relationship with customers, including the fact that
long-term customers are more likely to introduce your business to others via a verbal referral, they're more likely to
purchase other products from you and
if they're completely happy with the service they're getting then why would
they even think about switching to a competitor?
If the business is
maintaining good customer relations and keeping people loyal and satisfied,
this also helps create a happy workforce, with decreased work stress and increased
job satisfaction.
Clearly there are a great
many benefits to keeping hold of
customers. But modern customers are smart - they're not happy to deal with
you simply because they know you or your office is nearby or even because it's
the easiest option. These days, people know how to get the best deal and will
be happy to defect to a competitor quicker than you can say, "nice knowing
you" if you don't give them what they need. So, short of locking the doors
and refusing to let people go until they pledge to stay loyal to you for the
rest of their days, how do you keep people coming back for more?
Make Promises and Keep Them
The bad news is that there
doesn't seem to be one particular foolproof method. If there was, everyone
would be doing it. Firms that can boast great success in their customer
retention endeavours often have one thing in common though - great customer service. It's no good
promising a customer the world at your initial meeting if three months down the
line they discover you don't have the manpower, skills or knowledge to keep go
about keeping your promises. You have to make promises you can keep and be able
to provide what the customer demands. And you must do it better than any of your competitors.
As all great gurus will
tell you, the first thing you need to do is look within. In this case, that
means within your business. Employing staff who are enthusiastic and who
actually know what they're talking about will do wonders for the reputation of
the firm. How many times have you walked into a shop and asked for some advice,
only to be met with a blank stare from the shop assistant? It's frustrating if
the customer contact person has no clue about what they're actually selling -
so staff training is key.
In fact, staff are
frequently listed as a company's biggest asset and, as such, they deserve a
good chance to develop in their roles. Every representative of your business
needs to be taught to exercise good judgment and take the initiative when it
comes to problem solving.
Communication is a vital
part of keeping customers satisfied. It's important to listen to your customers. Make sure you communicate well, too, with
a customer magazine or newsletter to keep customers well informed. An employee
newsletter is also an effective way of keeping staff informed of new products,
changes and good practice.
Reward Loyalty
Tried and tested methods of
customer retention also involve rewarding people for their loyalty and giving customers something tangible - a real
reason to come back to your firm. Incentives
to return could include add-ons, vouchers, loyalty discounts or cards,
special pricing and bonuses and gifts for ordering through a website.
Above all, keeping
customers happy should mean that actions speak louder than words. A proven
rather than promised commitment will put you way ahead of the competition.
I hope this helps your
business be outstanding.
One more thing before
you go......I would like you to do one important thing for me - spread the word
about this article.
That is all -
David
No comments:
Post a Comment