It’s one thing to bring new customers through the door, but another thing entirely to keep your current customer base happy.
If you’re not sold on the importance of customer retention, these statistics are likely to change your mind:
- A 5% increase in customer retention correlates with at least a 25% increase in profit.
- 90% of customers are likely to purchase more than once.
- 90% of American customers share their customer service experiences with others.
Now what do you think? Are you sold on the idea that customer retention is important to the current and future well-being of your business?
If you’re ready to devote the necessary resources to customer retention, here are three strategies to consider:
1. Show Your Appreciation
Even if you provide a great experience, you can take this one step further by showing your appreciation to each and every customer. Here are a few ways of doing so:
- Follow-up via email or mail to share a coupon
- Connect with customers during special times of the year, such as their birthday and holidays
- Send a handwritten note: A handwritten note shows the customer that you truly care about their experience and your relationship. This is much better than a “stock card” that’s pre-printed with no personalization.
There are hundreds of ways to show your appreciation. Find the two or three that work best for your business and use them to your advantage.
2. Stay in Touch
One of the biggest mistakes you can make is letting your customers forget about your company and their positive experience.
There are many ways to stay in touch, including but not limited to:
- Email (such as a newsletter)
- Snail mail
- Phone calls (depending on your industry)
You don’t want to go overboard, but at the same time it’s critical to maintain contact. When you’re at the top of a consumer’s mind, they’re more likely to turn to you the next time they require your product or service.
3. Ask Questions
How did you enjoy your experience today? Would you change anything about your experience with our company? What types of products/services would you like us to offer in the future?
Asking questions of your customers shows them that you care about their opinion. It also allows you to connect with them on a personal level, while providing a better experience in the future.
You can personally ask questions after your interaction, follow up via email, or ask the customer to complete a short survey.
As a small business owner, customer retention should be a top priority. If you’re struggling in this department, experiment with the strategies above in the near future. It may be all you need to turn things around!
For more insights on marketing strategy that actually works for small business, connect with Jay Bean, Founder of FreshLime and Small Business Marketing Expert on LinkedIn and Twitter. If any of these tips have helped you or if you have anything to add, please comment below. We’d love to hear from you!