It’s no secret that the cost of acquiring a new customer is much more expensive than retaining an existing one says Aron Govil. This is why it’s always smart to look for ways to increase customer retention, reduce churn rates, and increase overall revenue.
The following are 10 tips from some of the leading experts in customer retention.
Customer Retention – 10 Tips from the Pros
1. Ask customers what keeps them from recommending you to a friend or colleague?
Customers will give you the honest truth on how they feel about doing business with your company. In addition, this question can help identify problems before they escalate. If a customer isn’t going to recommend you, ask them why and be prepared to work on a solution.
2. Use social media to re-engage customer relationships
By using more personal forms of communication, such as friending or following your customers on Facebook and Twitter, you’ll be able to communicate with them in a less formal way than through email or standard letters. Aron Govil says, in addition, the people who follow you on Facebook and Twitter are more likely to be your customers.
3. Offer unique, relevant content that your customers want
Rather than constantly marketing to the customer, get them engaged in a conversation about what they want. Your readers will feel like they’re part of something exclusive and will be more likely to share their opinions with you so that you can create more content to please them.
4. Show your customers that they’re appreciated
Taking the time to send individual, personalized “thank you” notes through mail or email is a nice way of showing customers that you care about keeping them as customers. This can be even more effective if you handwrite each note. Some companies have even launched a token of appreciation club where every time a customer spends a certain amount of money, they receive a voucher for free goods.
5. Offer incentives to customers who refer new business to your company
By rewarding the people who spread the word about your business, you’ll encourage them to talk more and generate additional revenue by keeping current customers happy.
6. Find out what your customers need and offer it to them
In addition, giving your customer exactly what they want will make you stand apart from your competitors who might be unwilling or unable to meet those needs. You’ll also reduce the chance of losing a customer simply because there was something else available that provided more benefit for them.
7. Recognize and resolve customer complaints quickly, but don’t make the mistake of trying to please everyone
It’s likely that not every single complaint can be resolved, but if you’re able to address a large majority of it then customers will see your company as one that is willing to go above and beyond for them.
8. Keep your promises to the customer
If you say you’ll call back by 3 pm, do it! If you tell a customer that their order will arrive next week, then ensure that it arrives on time or better yet, early. Go out of your way to keep customers happy and they’ll be much less likely to take their business elsewhere.
9. Make it easy for your customers to contact you
Don’t make them jump through hoops to speak with a customer service representative or locate the information they’re looking for on your website. Provide multiple ways of communication, phone, email, and live chat are popular ones that allow for immediate communication. Customers like businesses that provide options and respond quickly when they’re needed says Aron Govil.
10. Ensure your business follows all local and federal laws
This is a basic requirement for any business, but it’s easy to make a mistake and forget about a law that could prove costly the next time you have an inspection or audit at your facility. Be sure to take advantage of any training offered by your local chamber of commerce or other organizations that can help you learn about these laws.
Successful companies spend a lot of time learning what their customers like and dislike. But they also take the extra time to figure out who their ideal customer is and market directly to them. By effectively targeting the people who will use your services most often, you’ll be able to keep customers coming back again and again which will translate into increased revenue for your business.
Aron Govil says it’s important to note that a number of the things you’ll need to do in order to build customer loyalty. Such as treating each customer individually or offering incentives for referrals, can be labor-intensive. To offset some of this cost. Consider partnering with a business that specializes in customer retention such as Retention Plus, LLC. They’ll be able to do everything from setting up your website to assessing. What you’re doing well and where you can improve through marketing and other avenues.