Is it cheaper to retain customers or to get new ones? As a business owner, you know this time old question. But do you know the answer?
While it does vary per industry, on average, it’s five times more expensive to obtain a new customer rather than retaining your current customers.
You may be wondering what you can do to gain the loyalty of your customers. We have you covered! Keep reading for five ways to improve your customer retention rates.
- Manage Your Customers’ Expectations
Remember the phrase “Under promise, over deliver”. Your customers’ expectations will not only be met but they will be so satisfied that it can increase the chance for customers to share their good experiences (this is where your business can utilize review marketing).
About 90 percent of people who have had bad experiences at a business have stated they are more likely to share the bad experience rather than the good.
The best ways to counteract this is to set clear timelines, be honest and follow up.
When setting these expectations, they need to be realistic and attainable to achieve so you meet AND exceed expectations.
Managing these expectations can be difficult but very important in improving your customer retention rates.
- Utilize a Customer Loyalty Program
Loyalty programs can be one of the most effective ways to not only retain your customers but to stop them from going to your competitors.
With a loyalty program, the name says it all! These programs help encourage customers to come back and develop a sense of brand loyalty with your business.
By rewarding customers who are using your business, you are introducing new and valuable clients while reducing the number of customers that do not bring in profit.
Smoke and vape shops are a great example for businesses that do a good job of implementing loyalty programs for customers, but don't forget, any industry can utilize this tactic!
- Get Personal
It’s time to be authentic and real with your customers!
Although this may be harder to do with the number of customers you have or the limited time at your disposal, getting more personal with your customers can improve your customer retention.
Providing good customer service is one thing, but remembering the personal attributes of your customers will show them that they are valued and you are aware of them outside of a business setting.
Once a customer feels that personal connection, their brand loyalty will start to grow and they will be encouraged to return to your business.
Additionally, remember that personalizing your customers' experience when they return is crucial. You can do this by having them sign up for coupons, email newsletters or even by offering a free gift on their birthday.
If you want to learn about which small business values appeal to customers, check out this blog.
- Ask for Feedback
Aa a reputable business, you mus let customers know that their opinions are valued, and you care about what they have to say.
This will also be important in making your customers feel like you do not just care about their business, but you care about them as people.
By learning what your customers like and don’t like, you have the ability to make improvements to your business based on their feedback.
When you make adjustments based on concerns you’ve received, it’s likely your customer retention rates will improve. It’s a win-win for you and your customers!
Word-of-mouth recommendations are still valuable, but online reviews are growing in popularity and shouldn’t be ignored when it comes to gathering feedback about your business.
If you have questions about review marketing, our team at RevLocal is here to help!
- Monitor Trends
Simply put, stay up to date with new and exciting trends.
Some trends may not affect you personally, but they can change your community culture. As a business owner, you can adopt these trends if they align with the overall vision of the business.
If there is a certain trend gaining popularity across the internet, it’s a good idea to get involved as this will help you as a business become more relatable and relevant.
As you become more relatable to your customers, they will choose to come back rather than going to a competitor!
Do you want to gain more insight into ways to be relatable and follow new trends? Check out these blogs for some inspiration:
Once you have customers, retaining them should be your number one priority! As a business, you should be doing all you can to keep your customers happy.
Managing their expectations, rewarding them, getting personal, asking for feedback and monitoring trends will highly increase the likelihood of retaining your current customers!
If you’re struggling to gain customers in the first place, it’s time to look at your online presence and how you’re ranking compared to your competitors. But you don’t have to do it alone!
At RevLocal, our dedicated team of experts is here to help you create, optimize and monitor your business’s digital marketing strategy. Request a free analysis of your digital presence today to get started!