Customers are considered as the key aspect for business success. With the increasing competition, it has become difficult for businesses to retain their customers. Today, there are a number of options available for a customer, whether it be online or offline, it has become a cumbersome job to get the customers back to your business. Did you know, it is six to seven times more costlier to get a new customer than it is to keep your current ones? Thus, it’s important to retain your existing customers for sustainable growth of your business. There are various strategies developed which you can use to retain your customers. Let’s have a look at what exactly customer retention is all about!
According to Wikipedia, ”Customer retention refers to the ability of a company or product to retain its customers over some specified period”. It is the process of engaging your existing customers to continue buying the products and services from your business. It is different from customer acquisition from the term that the person is converted into a customer at least once.
The customer retention strategy helps you to form healthy and long-lasting relationships with your customers who will gradually become loyal to your brand. Customer retention in turn helps to create the business a good reputation and goodwill in the market. It also generates a worthy Competition with the opponents. The customer retention acts as a best proof regarding the quality of products and services you are providing. You need to maintain that record in order to sustain in the market.
# Benefits of customer retention
Focusing on customer retention will help your business in the long run. For instance, Think about your favourite clothing brand, you probably buy most of your clothing items from that brand each time you shop. You are considered a loyal customer of that brand. You’re most likely to refer this brand to your relatives and friends because of how much you trust and appreciate the product. Your value as a customer is high as the business gains profits from your purchases as well as your friend’s purchase. Thus customer retention helps to gain lots of benefits. Some of the major and basic benefits are as follows:
●Increased profits- Maintaining relations with existing customers earns a positive impact on your business bottom line. Data shows that increasing customer retention by 5% can increase profits anywhere between 25% to 95%.
●Brand ambassadors- yeah, it’s true! The best aspect of customer retention is that your customers act as your brand ambassador. They have the ability to give your brand a boost on internet platforms, spread positive messages about your services and thereby influences your consumer sales. The most effective are those who are able to act as spokesperson for your brand.
●Cost effective-. The prime advantage of customer retention is that it saves the cost involved in customer acquiring. Several researches have been conducted in the past which has proved retention more beneficial over acquiring. It helps to create a customer base for your business.
# Simple strategies to retain your customers
Your company's most valuable asset is how it is known to its customers. Always be loyal to your customers. They need to get an assurance that you are always available to solve their problems and find an appropriate solution for it within no time. When you try to retain your customers, the customer expectations tend to rise over a period of time. Try to meet their needs by conducting surveys and research to measure their level of satisfaction associated with your product. Try to find the reason behind your customer dissatisfaction and constantly work to improve it. A personal mail, phone call or message to know if they are satisfied with our services and if they are enjoying your product is one of the best ways to create a personal connection with the customer . Appreciate their loyalty by providing them gifts and discounts on special occasions. Reviews, video testimonials, conducting live webinars are some of the excellent ways to showcase customers exactly about how the product or service you’re offering can fit in their life and make it easy. It will thereby help build a trustworthy relationship with your customers. These all-basic strategies can prove to be the best aspect for your business sales and its ROI.
To conclude, Customers are the important asset of the business. Thus, it is essential for a business to retain them. Applying the right customer retention strategy will keep your company growing if you know how to take advantage of it. Know your audience and build up strategies around your customer insights.
Remember the Pareto principle, “20% of your customers are responsible for 80% of your sales.” Always be loyal to your customers. Be interactive with them, try to solve their problems by taking no much time. It will help to build a sense of belonging towards your business. One can always rely on customer retention strategies as it is not only cost effective but a safest way of creating strong relationships that stand the test of time.
ALL THE BEST!
References
https://www.helpscout.com/blog/customer-retention-strategies-that-work/
https://www.crazyegg.com/blog/customer-retention/#:~:text=Customer%20retention%20increases%20your%20customers,give%20them%20value%20in%20exchange.
https://marketingwizdom.com/strategies/retention-strategies
https://www.growcode.com/blog/customer-retention/
Thank you. Good info 👍
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