If you care about your customers and take the trouble to get to know them then you have a strong chance of retaining them as customers.
Existing customers are one of your most important assets – they’ve already chosen you instead of your competitors! Keeping their custom costs far less than attracting new ones!
The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% – Marketing Metrics.
It costs 6–7 times more to acquire a new customer than retain an existing one – Bain & Company.
Benefits of Retaining Customers
There are numerous benefits of keeping the customers you already have:
- satisfied customers like to buy from you and this can increase your market share
- existing customer relationships are opportunities to increase sales
- repeat customers usually cost less to service
- loyal customers will tolerate things going wrong and be more forgiving – of course you need to recognise this and show your appreciation
- satisfied customers may be prepared to pay a premium price
- their expenditure tends to increase over time
- your sales, marketing and set up costs are amortised over a longer customer lifetime
- in fact retaining customers can actually reduce your marketing costs
- if you have loyal customers this makes it easier to introduce new products / services
- it helps cross selling
- increases profitability
- it enhances opportunities for feedback – a loyal customer is as likely to answer a questionnaire as a dissatisfied one who wants an opportunity to complain
- happy customers will spread the good word about your business and provide referrals if you’re a services business
- a satisfied customer can be a great ambassadeur for your brand (- think WoM)
Ways you can Retain Customers
- smile when you see them – simple but often business owners or their staff fail to do this
- make your customers feel valued – listen to them, have empathy
- make it easy for them to get information about your products/services
- make it easy for them to buy from you
- say Thank you!
- use positive social proof
- use the words they like to hear
- reduce pain points and friction
- reduce/ eliminate buyers remorse
- provide anticipatory service e.g. a hairdresser who texts a client to remind them of their appointment
- be dependable
- if you have a specific list for your customers you can make them special offers, send them Christmas greetings
- if they have a complaint handle it promptly and courteously – complaints are golden opportunities – handle them well and you’ll have a hapy but also a loyal customer – who will speak favourably about your company, it’s products/services
- have a customer loyalty programme – it can be as simple as after x number of purchases they can have y% off the next purchase or an entitlement to comething for free
- if you have a Facebook page reach out to them – interact with them, respond to what they have to say to you
- ask for their feedback on your ideas for new products or services – people like to feel included and that their opinion matters
- provide great customer service
- smile – again
- remember to say Thank you!
My question to you:
- what do YOU do to retain your customers ?
