Is there anything better than gaining a new customer? Most business owners are satisfied with a constant influx of new clients, but then again, who wouldn’t be? However, studies show that retaining existing customers is even better than acquiring new ones. Loyal customers result in a greater ROI and they cost 5-20 times less. Retail business loans can help fund marketing efforts to help acquire customers and retain existing ones.
How do you keep your current customers interested? The goals and strategies of customer retention depend on the industry you’re in. For example, online retailers have different customer retention strategies than brick-and-mortar companies.
However, the main goal for all businesses is to provide a level of service that keeps your customers from going out the door. With that said, here are five customer retention tips for business owners.
1. Don’t Make Promises You Can’t Keep
Rule number one: don’t make promises you can’t keep because you’ll have to follow through, every single time. If you want to retain your customers, you have to meet the expectations you set. This means that if you make a promise or commit to something, you should follow through. A lot of business owners love to promise their customers the world but when it comes to following through, they’ll have poor standards.
It’s important to keep your customers informed about the progress, goals, and objective of your business. Be sure to maintain full transparency not only when everything is going well, but especially when obstacles hinder the success of the business relationship.
2. Acknowledge Customer Feedback
Your customers want to be heard. In fact, 70% of businesses that deliver top-notch customer experience use client feedback. Great customer service based on client feedback not only keeps your customers happy but also reduces the rate of customer churn. Additionally, strategically using customer feedback to improve service can increase their spending power. Studies show that 70% of customers are loyal because of great services, while 40% said they are willing to spend more money because of great service.
Related: 5 Reasons Why Your Retail Business Should Focus on Customer Service
3. Automate Customer Relationship Management (CRM)
The goal of having a CRM is to improve business relationships by managing leads, reducing turnover, and keeping your customers satisfied. A study from IBM states that 74% of companies have improved customer relationships by using customer relationship management. As if that’s not enough, CRMs are also proven to boost customer retention by up to 27%.
CRM works best for customer retention because it gives business owners insights on how to improve customer experience. With CRM software, you can store and access past and present customer information whenever, wherever. It provides you with valuable data so you can create strategies to reconnect with inactive clients.
4. Create a Customer Loyalty Program
Customer loyalty programs are a classic way to retain customers. You give your customers incentives to come back and purchase from you. When your customers get into your loyalty program, it’s your job to make them feel special. You can offer exclusive deals, first look at new products or services, or discount codes. With this exclusive treatment, your customers will surely feel special and valued and this is the goal of customer retention strategies.
You can take it up a notch by providing incentives even before your customers join your loyalty program. For instance, you can offer a discount code without making them sign up for anything or you can hand out coupons in the store. Offering these incentives without any hidden agenda will go a long way in improving customer loyalty.
5. Listen to the Complaints of Your Customers
Providing quality customer service and customer retention go hand in hand. Think about it, would you purchase from a store again if you were unhappy with the service they provided? Not likely.
Whenever your customers complain about something, consider it as constructive criticism. Customer complaints are like a mini customer survey. To ensure customer satisfaction and increase customer retention rates, you need to address those complaints.
Keep in mind that every customer feedback is valid. Let your customers feel that you value their feedback by making it easier for them to reach you. You may want to put a Contact Us page on your website, put your emails on receipts, and make sure you’re active on social media. Make sure to use the insights from your customers to improve overall customer experience.
Discover Retail Business Loans for Your Company
A business with good customer service will always win over others. If you need a financial push when implementing customer retention strategies, you might want to consider retail business loans. With extra funding along with the tips above, you’ll be assured that you’ll see your customers the next time around and a hundred times after that.