As your business grows, retaining customers becomes just as important as acquiring them. Proper customer retention strategies can help generate returns through loyalty and can increase your customers’ lifetime value. Customer retention is the process of getting existing customers to continue buying products or services from your business, and it is one of the most effective ways to build lifelong customers and reach your sales goals.
One of the reasons you should also focus on customer retention is that it’s easier to sell to existing customers. According to reports, the probability that a new prospect will buy from you is 13%, compared to a 60-70% chance of making a sale to an existing customer. Since existing customers already know your business, you can save on marketing dollars and increase profitability.
When strategizing your customer retention plan, look at the following four factors, which have the most impact on the topic: service quality, satisfaction, trust, and commitment. By examining your customers’ journey you can glean insights into ways to improve all of the aforementioned factors. The best ways to build customer loyalty will depend on your industry and specific business, your demographic, and your offerings, but these key factors can apply across all spectrums to help your overall customer retention.
Email newsletters help keep your brand fresh in the mind of your customers and keeping a calendar and understanding when your customers have been reached out to will help you better maintain relationships with your existing customers. By tracking how long it’s been since an existing customer interacted with your business, you will know when to re-engage inactive customers with promotional offers, compelling content, and valuable announcements.
A way to improve your customer journey is to implement a multichannel or omni-channel customer service system to make it easy for customers to get answers where and when they need them. Customers appreciate a business that is reliable and trustworthy. One of the most effective ways to garner customer retention is with loyalty programs that entice people to stay loyal to your brand.
Ready to increase your customer retention and your bottom line? Contact Site Impact to hear how we can help.