Why Do You Need a Customer Retention Strategy?

Because it is easier, cheaper, profitable and awesome! If you are convinced, stop reading. The rest of the article is just fluff. If you are still not convinced, please continue reading.

Every business owner needs to ask him/her self two important questions when it comes to customers.

What is your customer acquisition strategy?
What is your customer retention strategy?

Now, there's good news and bad news. Good news first! All businesses that are currently operating have a customer acquisition strategy in place. So what's the bad News? Very few businesses have a customer retention strategy.

A common scenario in businesses that do not have a customer retention strategy looks something like this. Customer comes in, the business services them, customer leaves and the business starts hunting for new customers. When the new customer is found, customer comes in... you know the drill.

If I were to guess why this happens, my money would be on the following statement:

Most businesses take their customers for granted. They think that if they did business with us once, they will do business with us again.

Unfortunately, that's not how the customers think. They need a very good reason to come in on repeated basis. If you don't provide them that reason, then it's safe to assume that it is probably the last time you saw them.

Is it easier to entice old customers to come in again? Sure, especially if you provided them great service the first time. All you would have to do is send them a thank you card or offer a sale, or do a special promotion for your "Best" customers or just say, "Please come again." It's not that difficult.

Is it cheaper to bring back old customers? You bet! Bringing in new customers takes significant amount of time and money. You have to jump through all kinds of hoops to acquire a customer. But, the ones who have already experienced working with you, only needs a nudge or a gentle push to come back.

Is it profitable to have repeated customers? It definitely increases your revenues on a regular basis. If you have to hunt for new customers, your revenues will stay around the same ballpark every month, every quarter and every year. Think about it. After all, how many new customers can you bring every month? Answer is... Only so many! But, combine new customers with repeated customers and revenues are increasing on a exponential basis.

So, there you go! You need a customer retention strategy because it is easier, cheaper, profitable and awesome.

About Mayur Gudka

Mayur is an Internet Marketing Strategist. He is also the founder of Websum. More information about Mayur Gudka is available on his website http://www.mayurgudka.com