New customers are not easily, or inexpensively, gained. In fact, according to Bain & Company it costs six to seven times more to acquire a new customer than retain an existing one. Likewise, a 5% reduction in the customer defection rate can increase profits by 5-95%. While that potential profit range covers a lot of ground, the concept is clear – customer retention and loyalty are absolutely worth the effort. So what are some customer retention strategies? We explore some tips to keep your customers repeatedly walking through your door.
First and foremost, you need to measure how well you’re retaining customers. Without measurement, you’re left guessing or subjectively trying to judge whether customers seem to be returning or the frequency with which they are returning. Proper measurement allows you to clearly and objectively evaluate improvement as well as pinpoint areas to drive customer loyalty. At Reality Based Group, we collect the right customer loyalty data so you can make the strategic decisions you need based on qualified, objective information.
Cherish Your Customers
Your customers are your lifeblood, treat them as such and you’ll give them a reason to keep coming back. One tip to retaining customers is to emphasize personalization in your interactions with them to let them know they are valued. Remember, greetings and goodbyes can be crucial to starting and ending a customer’s experience on a positive note and are important in building customer loyalty.
Loyalty can be its own reward, but giving customers rewards, discounts or other perks with a loyalty program can help increase customer loyalty. You can get mobile with your loyalty program by creating an easy to use app that makes it a breeze for your customers to earn loyalty rewards. Additionally, when your customers already like doing business with you, a loyalty program can be the icing on the cake.
Invest in Your Team
Customer loyalty might matter to you, but does it matter to your team? Your team, specifically frontline employees, can help influence customer retention when taught how and why loyalty is important. Invest in your team with strong training and coaching that will lead to greater employee involvement, appreciation and thus retention. Keep your team intact and customers have familiar faces to welcome them back each time.
Working to keep your existing customers is imperative to your success in any industry; so let customer loyalty be a key part of your strategy. Measure and evaluate loyalty with the right data. Then, implement actionable behaviors and procedures that drive loyalty and make a big difference on your bottom line.
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