How to Improve Customer Retention
When it comes to increasing sales, gaining new customers is typically top of mind. It's exciting to keep throwing out a bigger and bigger net with the aim of reeling in your biggest catch yet. And while no brand should ever stop acquiring new customers altogether, long-term success often lies in the hands of the customers you already have. Don't believe us? Well, what if we told you that a mere 5% increase in customer retention can increase profits by 25% to 95%?
Glad we caught your attention.
While many salespeople live and breathe by the 'always be closing' mentality, closing a sale should be considered the beginning of a relationship rather than the end of a sales cycle. Why? Well, if you want your customers to keep coming back you have to view (and treat) them as more than a dollar sign. Nurturing your relationships with existing customers is what is going to keep your brand alive and healthy - and here is how to do it:
1. Treat Loyalty Like Royalty
Customers want to feel special, especially when they're frequently spending their hard earned money on your product or service. It's absolutely crucial for your brand to identify and cater to your top customers. After all, 20% of them will likely be responsible for 80% of your future revenue. Find them, get to know them, and WOW them with your customer service.
These are the customers that should receive exclusive offers and sneak peaks of new product offerings. Whatever your brand can do to make these top customers feel special is worth it - trust us - the cost of finding a replacement is far greater than keeping them happy.
2. Get Personal
Although it may be unrealistic to roll out the red carpet for all of your customers, you should at the very least personalize their experience. A 2016 study found that personalized incentives make most respondents feel respected as customers and 56% of those respondents admit it increases their likelihood of shopping with a brand. Fortunately, data collection makes personalization a breeze. You can easily mine customer purchase history to create a personalized shopping experience for each customer. We collect customer information for a reason, use it!
3. Ask, Listen & Respond
No one knows more about what your customers want than your current customers. So, if you're wondering what you can do better, ask them! The communication shouldn't stop there either, you need to actually listen and respond to what they are saying as well. Nothing makes a customer feel more important than having one of their suggestions put into action. They want to be a part of the process and a part of your brand family. Let them in - family is forever.
4. Thank Them
A little goes a long way, especially when it comes to thanking your customers. Just think about how warm and fuzzy you feel when you receive a thank-you note from a wedding or baby shower. It makes you feel appreciated and the same concept holds true for customer service. Sending personalized thank-you cards is one of the most undervalued customer service tactics out there. Not only does it make your customer feel appreciated, but it also reminds them of your product or service (increasing the likelihood of a repeat purchase).
Much like personal relationships, business relationships need constant attention. You simply cannot afford to forget an anniversary, let a phone call go unanswered, or neglect to say thank you. Your current customers are your best customers - don't be afraid to show it.