In marketing, we talk a lot about customer acquisition. You’d be hard pressed to find a business who admits that they don’t need more paying patrons. But customer retention — holding tight to the people you’ve already acquired — is just as (and maybe even a little bit more) important.
Why? Simple math.
Studies have shown that acquiring a new customer can cost five to seven times more than keeping one you already have. And even small increases in retention rates can equal big increases in profit. (In the financial services industry, for instance, just a 5% increase in retention boosts profit margins by more than 25%).
But it’s not just a numbers game. Loyal, satisfied customers are more likely to recommend your business to friends and family, leave positive reviews that draw strangers into the fold, and provide free marketing in the form of user-generated content.
So rather than customer acquisition, today, we’re going to talk about customer retention. Specifically: How do you turn first-time buyers into loyal, satisfied customers?
We’ll show you!
4 Keys to Higher Customer Retention Rates
#1: Create Loyalty Programs
Whether it’s a punch card, a point system, or even the opportunity to attain VIP status, loyalty programs incentivize people to keep coming back for more.
When designing your loyalty program, make sure your rewards aren’t too far out of reach. You don’t want to give away the house, but you also don’t want people giving up because you’ve set the bar too high. A tiered system that starts small and builds from there works best.
#2: Get Personal
When a business goes out of its way to get to know the person behind the credit card, customers will sit up and take notice. Personalized marketing creates deeper relationships and helps boosts engagement.
Take notice of your customers’ behavior. Don’t just throw a generic email at them; take the time to tailor offers directly to them. Learn who they are and why they’re buying what they buy so you can anticipate their future needs.
(Pro tip: A good customer relationship management program is a game changer here!)
#3: Provide Stellar Customer Service
From basic questions to billing errors to product returns and beyond, customer service is a big job. And if you want to hang on to your existing customers, you’d better be very, very good at it.
Respond promptly to customer communications. If you can’t immediately solve their issue, give them an accurate timeline for when they can expect an update. Always be polite and courteous, even when (especially when) they’re not.
Remember: People only really remember two types of interactions — terrible ones and fantastic ones. Always do your best to provide the latter.
#4: Go Above and Beyond
The mechanic who returns every car freshly washed and gassed up; the pet store owner who never fails to put a handful of doggy treats in with Fluffy’s flea and tick medication; the mortgage broker who brings a housewarming gift basket to every closing.
All of these business owners have gone above and beyond the customer’s expectations, and that’s what makes a customer a customer for life!
How Loyal Are Your Customers?
Customer loyalty isn’t given freely. It needs to be earned time and time again. Every interaction you have with your customers, whether it’s online, in person, or over the phone, is one more chance to prove to them that you deserve their repeat business.
Treat people the way you’d like to be treated, and you can’t go wrong!
Whether you’re looking to add more customers to your fleet or just keep the ones you already have satisfied, Mischa Communications is your one-stop marketing solution. Let us earn your loyalty!