Doing business successfully in today's changing economic climate requires you to adapt to new business realities. One of the more prominent of these is the need to become savvy to the growing strength and scope of e-business and the related need for businesses both big and small to focus on customer retention strategies. Simply put, both potential and current clients now have an all-powerful means of comparison shopping and will be swayed to and from you and your competitors alike. The time to take the initiative on customer retention is now.
All businesses need to direct greater energies towards customer retention strategies as widespread client loyalty is very much a thing of the past. Providing quality products and/or services and being accountable to the client will not guarantee your retaining them long-term, even if it is a long standing and mutually strong agreement. A burgeoning competitive market and advanced marketing technologies will pose greater risks for customer defection, and you are well advised to get a leg up in developing and incorporating business retention strategies as this instability dynamic is here to stay.
Focus on Your Established Customer Base
All effective marketing strategies originate in logic, starting from the basics and building from there with a forward vision. Market research clearly states it is five times more profitable to spend marketing / advertising dollars to retain established customers than on efforts to acquire new ones. A Harvard Business Review printed that retaining even as little as five percent of defecting customers could increase customer profitability by 30 to 85 percent, dependent on industry. That's imparting simple, and very powerful, business logic if you'll ever see it. Clearly it's critical to focus your business strategies on client retention.
We truly are becoming a global economy, and the all-pervasive power of the e-commerce world means your client base may be subject to sway in ways it has never been before. That doesn't mean you cannot harness that power to your advantage. Take action knowing that new and proven online marketing strategies can provide you with the clout to combat this trend, and the best ones often incorporate a simple and time-tested concept.
Strength in a Gesture
From auto parts to aeronautics, the number one reason customers or clients leave a supplier is the belief their business is no longer appreciated. In fact it's often more a scenario where the consumer believes their business is somehow not appreciated the way it was following the initial entry into a business relationship. All business owners and marketing directors are encouraged to be on top of keeping those ties warm, and, in fact, you need to be certain to do so. Customer appreciation equals customer retention.
You could do complicated studies on customer needs and wants, and develop a program to address these with new products or services. But fortunately there are some basic wants that we all have that act as extremely powerful motivators - the need to be acknowledged and appreciated is easy to address:
Whenever possible, remember your customers' names, and address them by name when they come into your business. You probably can't remember everybody's name, but you can at least remember your most frequent customers. Dale Carnegie says everybody's favorite word is their own name!
Smile at those valuable customers when you interact with them. Spend some time chatting with them if you have an opportunity. Express an interest in their lives and well-being.
Thank your customers for their business every time you interact with them. Let them know how valuable their business is to you.
Send personal cards to say "thank you" periodically. Send birthday cards and holiday cards every year. Always send a thank you card for a referral so they know how much you appreciate it.
These quick, easy and very thoughtful actions build great relationships with your customers. They are such straightforward ways to let them know they are more than just numbers (or dollars!) to you, and give your clients that warm fuzzy feeling about you and your business which will keep them loyal to you for the long haul.
Remember that even a slight increase in customer retention has a huge impact on your profits and ultimate success. Showing sincere customer appreciation is one of the easiest paths to increased profits available to any business. And it feels good too! Have your business begin to improve its customer retention strategies right away. Enjoy the results!
Judy Schaefer
http://www.EasyCustomerRetention.com
"Helping business succeed through improved relationships with your customers."
Receive a free trial of our online system that automates sending REAL greeting cards at http://www.EasyRetentionCards.com
If I can be of assistance or you'd like to know more please email or call me:
judy@easycustomerretention.com
1-505-870-9815
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