In marketing, the focus of many businesses is exclusively on attracting new customers. It’s an appealing and exciting route that many merchants believe will lead to higher sales and profits. While true, customer retention is just as critical to long-term success. Unless you’re a new business just starting out, your existing customers will actually play a more critical role in your business’ success and revenue.
According to a study by Bain and Co., a 5% increase in customer retention can increase a business’ profitability by 75%. Furthermore, studies by Gartner Group show that 80% of a business’ future revenue will come from just 20% of their existing customers.
As you can see, failing to retain existing customers can prove detrimental to your business’ success. Customer retention is not only more affordable than efforts spent on attracting new customers, it’s guaranteed to play a more pivotal role in the longevity of your business. Check out our customer retention tips to ensure the success of your business down the road.
• Engage customers through social media
Interacting with your customers on a personal level is the perfect way to show your appreciation. Use Facebook, Twitter, Pinterest or any niche platform specific to your business as a means to easily and efficiently keep customers updated on a daily basis. There’s no better way to humanize your business then through a customer’s preferred channel of contact.
• Offer exclusive deals
Offer exclusive access to promotions and deals via email marketing, social media, or any of your preferred marketing channels. Customers are attracted to exclusive, scarce deals like bees to honey! Encourage repeat traffic with enticing deals that favor and reward customer loyalty.
• Focus on product reviews
There’s nothing as suspicious as a product without reviews. Let customers publish their thoughts regarding your products with a review that’ll help future customers base their decision. This is a great tool that promotes transparency and honesty, values existing customers are sure to appreciate. Don’t worry if you get a few bad reviews – this only lends to credibility.
• Send out thank you cards
With each shipped order, include a thank you card, newsletter, or some sort of personalized letter that expresses your gratitude. Furthermore, if possible, look into offering free shipping. High shipping costs is the leading cart abandonment factor. Don’t scare aware existing customers if you can cut this cost to free.
• Provide awesome customer support
Whether your customer is contacting you via phone, email or live chat, ensure your customer support is friendly, easy to talk to and informative. Businesses lose a great deal of their customer base due to poor customer service.
It may be a good idea to keep an eye on social media outlets such as Facebook and Twitter where customers often voice their grievances. Resolving issues via the customer’s chosen outlet is a great way to showcase your business’ dedication to quality, expedient customer support.
• Offer exclusive access
Creating customer groups is a great way to express your appreciation and create a sense of exclusivity. Whether your group offers a discount on products or simply has a name that promotes value, i.e. (Joe’s VIP group), a customer group is an easy way to let your customers know you appreciate and value their continued loyalty
Do everything you can to ensure your existing customers continue to experience a personalized, awesome shopping experience. These are just a few tips to improve the likelihood of customer retention, but if you’ve got any other tricks or tips up your sleeve, feel free to implement those as well. There’s no such thing as showing too much customer appreciation!