Most people think about how to attract new customers as soon as they start a business. Customer recruitment is an essential part of any business, especially when your business is just starting out. However, there is one thing that is much more important – customer retention.
According to research, it can cost 7 times more to acquire a new customer than to keep an existing one. This is why you should focus on keeping your customers satisfied if you want to have a profitable business. After all, a satisfied customer is a customer who will come back for more.
So, how can you actually focus on customer retention? Luckily, there are a few strategies you can use that will prevent your customers from going to the competitors.
You need to show your customers that you are grateful for their trust in your business. That increases the likelihood of a returning customer much more than if you just focus on making a sale. The key is to stay in touch and give customers a reason to come back.
One of the most effective ways to do this is through an email newsletter.
Encourage website visitors to subscribe to your newsletter so they can receive news about your company. This will always keep your business relevant as the newsletter will increase awareness of your company and products, and provide customers with important details.
Another great way to stay in touch and show you truly care about customers is through retention emails. Some of the most effective retention emails include:
When someone purchases a product from you, the best thing to do would be to send a welcome email with a personalized offer. This will make the customer feel welcomed and the special offer (usually a discount) will encourage them to make another purchase.
Sending a specialized birthday email with a discount shows the customer how much you care. They will see it as another birthday present and this will boost sales. This is a great tactic, as birthday emails have a 481% higher transaction rate than regular promotional emails.
Even if it seems like a customer has lost interest in your company, it’s never too late to try and spark that interest again. Send re-engagement emails to remind customers about your business along with a special offer that will tempt them to reconnect.
Customer service is an essential part of any business as its main focus is to keep customers informed and satisfied. Employees in charge of customer service need to learn how to truly listen to customers and do their best to fix whatever issue might have occurred.
A lot of companies lose customers because of poor customer service. Some offer canned responses that don’t solve any issues. Others even go so far to limit the time a customer can talk to a representative so they have time for the next customer.
Don’t make these same mistakes. Instead, always try to find time and patience to deal with any and all problems. Guide your customers through processes they might not understand, educate them about your company and products, and always be professional.
Here are some tips on how to provide great customer service:
1. Reply to all questions and queries a customer might have.
2. Don’t make a promise you can’t keep.
3. Know all the important details about your products that customers might ask about.
4. Be respectful and thank customers for doing business with you.
5. Keep in mind that a huge number of customers end their relationship with a company due to poor customer service. Don’t let the same thing happen to you.
There are 3.2 billion people worldwide who use social media, and your customers are probably among them. Social media platforms are a great way to maintain contact with existing customers long after the initial sale.
You can focus on engaging with your customers and retaining them thanks to websites such as Facebook, Instagram, and Twitter. There, you can educate your customers, interact with them, and also encourage them to leave comments and reviews.
Here is how you can use social media as a retention tool:
1. Use them to provide customer service by replying to comments and answering questions. Thank people for great reviews and offer to solve issues for those who aren’t satisfied.
2. Use it to monitor your customers’ opinions and interests, which allows you to change and improve your brand and products if needed.
3. Throw contests and giveaways occasionally to reward loyal customers.
Sometimes, things don’t go according to plan and problems arise. This is true in any aspect of life, especially in business. Clients can get upset and frustrated with your company and when this happens, they will probably lose the trust they had in your company.
While some businesses see this as a big issue, it could also be a great opportunity to earn back your client’s trust and show how much you care about resolving any issue. Do everything in your power to make the customer satisfied again.
It would be great if you could solve an issue while it’s still minor before it turns into a big problem. This is why you should send out customer satisfaction surveys. If someone gives negative feedback, make sure to contact them and even ask how they think a certain problem could be resolved.
Finally, don’t be afraid to take responsibility. Your company needs to develop a positive reputation online, so it’s important to admit to your mistakes and apologize if necessary. Honesty is always a much better route to take than lying and covering up the problem.
One of the most efficient ways of retaining customers is to set up a reward program. As the name suggests, these programs offer rewards to loyal customers when they fulfill certain criteria. And the more a customer interacts with your business, the bigger the reward they receive.
Reward programs are great for retaining old customers as well as attracting new ones. You can set up a point-based system and encourage customers to buy items. That way, they will buy more items to earn more points.
Offer a wide variety of rewards based on the number of points a customer has collected. Some perks you can offer include special discounts, free shipping, or even free products.
Another thing you can include is a referral link to every customer who joins your referral program. If a new customer purchases a product using this link, the referral will gain a reward that will keep them satisfied. And this way, you will gain a new customer.
Focus on the loyalty of your old customers, but also attract new ones as much as you can so your business can grow and make a profit. In the end, if you do everything right, you can even put up your eCommerce business for sale and rinse and repeat the process.
Simply put, you cannot possibly stay in business without your customers. That’s why it’s important to keep them satisfied so they keep coming back for more.