Acquiring new clients should be one of the top priorities of any business, and for obvious reasons. But one of the most cost-effective ways to increase your revenue is not to constantly give your new leads 100% of your time and effort, but to refocus on your existing customers. When a new customer makes that first purchase, it should be viewed as only the beginning. The customer has showed willingness to spend money on your product, and if handled correctly, that willingness will not disappear. Selling again to the same customer will require much less time, effort and marketing on your part, because the customer has already found you and proved that they are a relevant lead. Their first conversion opens the door for many more in the future. Here are 3 ways to increase your customer retention.
Firstly, increase your retention budget. There is more profit in keeping an existing customer than to acquire a new one. Also, most of your future revenue will come from your already loyal customers. Think of your current list of customers. 20% of those customers will be responsible for 80% of your future revenue. In order to increase repeat business, you need to invest time and money into your customers.
Secondly, acquire and familiarize yourself with a CRM platform. You need to be organized in order to keep track of your customers. Customer relationship management is more of a philosophy than a solution to a problem. It will help you gain the required insight into your customer’s needs and wants which is gold in the business world. Selling to a customer when you already know exactly all their needs and want`s are, is like taking an exam where you know all the questions in advance.
Thirdly, provide excellent customer service. Two thirds of customers who leave a company do so because they don’t feel valued by the company. If your customers think they mean nothing to you, they will leave. When issues arise, be easy to contact, be helpful and show empathy for whatever problem they have. When you mess something up, apologise and make it right. Resolve any conflicts immediately and repair broken relationships. We previously wrote a guide on how to apologise. Providing the best customer service isn’t only about apologising, but it’s also about thanking your customer, showing them that you value their business, or just congratulating them on their birthday. It`s not magic, just treat them like a person, not a number.
If you follow these three steps you will see your customer retention increasing in no time at all. It requires effort on your part, but the combination of: establishing a proper budget, reserving the required time, setting up your CRM platform and providing good and solid customer service is the best way to increase customer retention.