You want to keep your most profitable customers, right? Right! According to research by Frederick Reichheld of Bain & Company, increasing customer retention rates by 5% increases profits by 25% to 95%. You can double your profitability just by keeping the customers you already have. So how do you do that? Here are five tips for keeping your customers coming back.
- Go holistic. The more you know your customers, the easier it is to know what to do for customer retention. Start by tying together all the data you have on each customer to get one holistic view. For example, John W. Smith in your mailing database may also be Johnny Smith Jr. in your email list and J.W. Smith on Facebook. Most customers need help tying these databases together. If so, contact us, and we can help.
- Make it easy. Reduce barriers to communicating with you. Give people more options, whether it’s via chat box or Facebook Messenger. Make it easier to buy and make repeat purchases. Something as simple as pre-filling response cards and subscription forms can improve the customer experience.
- Treat them like real people. Customers don’t like feeling like a number. Take what you know about them and personalize text and images, whether in print or email. Invest in expanding your database to include new variables that will increase relevance.
- Listen. Are you only pushing information out and not listening to feedback? Respond quickly and appropriately to comments sent to you through email, your company blog, and even social media.
- Take the long view. Forget the gimmicks and quick fixes. Prizes, sweepstakes, and “experiential events” can get results, but they are short lived. As one strategist has put it, “Get to the trenches, examine how your customers live and use your products, and then design a complete meaningful solution for them across all touchpoints.”
There are no quick fixes for customer loyalty. It requires developing a strategy, making a commitment, and investing in an ongoing relationship with your customers that includes listening, as well as talking.
Need help? Give us a call!