Apart from finding new customers, you have to retain customers who are already working with you. From buying daily household items to picking mobile recharge shops customers prefers to buy from few of their trusted shops only. They do not like to change their habit as they were comfortable with the quality of service or product and the kind of hospitality they get their. The same rule applies in every service or product based business.
According to a statistic report by New York best selling authors Emmett C. Murphy and Mark A. Murphy, “Leading on the Edge of Chaos:”
Acquiring new customers can cost as much as five times more than retaining current ones.
Increasing customer retention by 2% has the same effect on profits as cutting costs by 10%.
The average company loses 10% of its customers each year
Reducing customer defection by 5% can increase profits by 25-125%
The customer profitability rate tends to increase over the life of a retained customer
Customer relationship is the most important thing as I have already stated after all your hard work to acquire a new customer, if you fail to retain them by not attending to them in a way that you once did. It will be a grave lose to your business. We often fail to give importance to our existing clients and turn our focus on discovering new avenues to get more customers on board. But that may cost you dearly sometime.
Here’s how to retain existing customers
It’s much easier to retain existing customers than spending time and money on finding new customers. Obviously there are business and service where customer retention is not a choice such as matrimony website or a divorce firm. But even for that kind of a business, when you delight your customers, they kind of become your brand ambassador and generate lots of buzz through word of mouth. Here’s how to delight existing customers and grow your business.
Respond to customers promptly when they contact you
Take care of issues immediately. Ignoring problems will make it even worse and difficult to correct them. Instill faith in your customers and let them know that you are committed to a high level of service and that you will do whatever it takes to resolve their issues. There is a study that showed that only 17% of customers would give a second chance to a company that makes a mistake. However, you greatly improve the chances of repeat business when you go beyond their expectations to solve their problems.
Following up with them regularly
Whenever your customers places an order, make sure that you follow up with them to see how satisfied they are with your product and service. Invite feedback – both positive and negative. Let your customers know that you meant a long term relationship and not just a one-shot deal. It will make an impression of genuineness of your business in their minds. Take the time to learn more about your customers during follow up calls. This minor effort can encourage them to inquire about the other products or services that you offer and you’ll gain new business. Since it’s always easier to sell more to someone you’re already doing business with.
Provide free consultation to them
Sharing your knowledge via a newsletter, social media updates, special reports and blogs will definitely prove your expertise. Unlike your competitors, providing valuable info will also set you apart from all the others who only focus on promoting their products and services through various mediums. Pay attention to the issues that are important to your customer and make it a point to find answers for them. They will make you the best reference for both general information and their business.
Look for long term goals
Look for other avenues to please your customers, even if it doesn’t mean an immediate return on your efforts. Look for occasions when you can refer your business, help out with an event or offer suggestions to improve their business. You’ll be the expert in their minds and will thereby be on top of their minds, the next time they are looking for similar product or service. As you get to know your customers better, you’ll be able to offer them assistance in a variety of areas.
Paying attention to them
You have two ears and one mouth – they should be used in that proper proportion. Listening to what your customer has to say will provide clues that will help you provide a more personal touch. Greet them during festive, send them congratulatory card on their auspicious events of wedding, birthdays and anniversary dates. Send cards for nontraditional occasions. Remember, you may be the only person that has taken the time to send them a card; people won’t care what you know until they know that you care.
Over to you
Irrespective of whether you sale a product or you offer local services, whether you are a big and well established business or you have just started up your business, customer delight is of highest importance and you can’t afford to ignore this. All it takes is a little bit of personalized attention, prompt response, long term vision and you win a customer.
