There is a saying in the business world which goes: “a happy customer is a loyal customer“, and customer loyalty is highly sought after. Numerous studies have shown that increasing customer retention rates by a mere 5% can increase profits by up to 95%, and the cost of keeping a customer loyal is only about 10% of the cost needed to bring in a new customer. Putting together a good retention plan will increase your company’s profits while simultaneously reducing its costs. (Guest Post)
In today’s world the market is flooded by numerous companies and the customer is likely to be well informed and know where he can get the most bang for his buck. This is where you need to step in, make sure he chooses your company, and is satisfied with the result.
So how does one go about retaining customers? Well, the truth is that there is no one magical way of doing so, or else every company in the world would be doing that, and customer loyalty wouldn’t be a problem, but there are several ways you can work towards making your customers happy, and ultimately keep them coming back time after time.
The most frequent way of doing so is by rewarding loyalty. By simply giving away free gift cards, vouchers, discounts or maybe even some of your products, you’ll give the customer something tangible he can latch onto, and a feeling that the company appreciates its customers.
This brings us to the next big thing – making it personal. A powerful way of making your customers loyal is getting in touch with their emotions. Giving customers a personalized experience makes them feel emotionally attached to your company or business, and this is a surefire way to keep them coming back time and time again, as emotional bonds are tough to break.
Another very important thing is to keep communicating with your customers, and only make promises you can actually keep. There’s no quicker way of losing customers than to make promises, and then fail to deliver them later on. False promises ultimately lead to unsatisfied customers and lower profits, as the customers will likely advise other people to stay away from your company, and go do their business somewhere else. Company honesty is an extremely important thing nowadays, and can make or break a customer relationship.
And what better way to know if your customers are satisfied than to keep them well informed about your company’s current business and being in touch with them? Starting a customer magazine or a newsletter is a great way of doing so, and having a team dedicated to taking care of customer emails and letters is highly recommended. This is also a great way of getting feedback, and maybe some customer suggestions of what they want from your company, and how can you improve your future products and ultimately make your customers feel involved and happy.
The benefits of keeping customers loyal and happy are plentiful. Besides the obvious profit increase there is one benefit that goes largely unnoticed, which is that happy customers are highly likely to inform other people of your company, thus doing sort of a free marketing campaign for your business. It is often said that bad news travels faster than good news, but in the business world this is often not the case, and having happy, loyal customers spreading the word of your company will make your business larger than ever.
About the author: Tanya Cvit is a marketing consultant working in the Croatian company Internet marketing d.o.o. Being in the business for over 6 years, Tanya has many successful campaigns behind her.