Leads, customers, sales – the three most important aspects of every business.
To build and thrive your business, you need to be focused on your most important aspect of all- customers.
Sadly, marketers nowadays focus more on acquiring new ones rather than retaining the existing ones. There is no problem with acquiring new customers, after all, this is how a business grows.
However, one needs to understand that customer retention is a key to revenue generation. It is the key that many companies often ignore – they let their anchor clients go, and regret their decision sooner or later.
To understand this, you need to consider the following statistics:
The cost of acquiring a new customer is five times more than retaining and enriching the existing one.
A five percent increase in customer retention increases the profit from 25% to 95%.
The probability of selling to an existing customer is 60 to 70 percent while only 5 to 20 percent to a new prospect.
Despite these stats, the average customer retention rate is below 20 percent for most industries.
If you want to scale your brand and boost your ROI, it is critically important for a company to develop good client retention strategies. It will help you create and maintain a competitive edge in your industry, thus broadening your success horizons.
Today, we have covered the most practical client retention tactics for startups and mid-sized businesses. These will keep your client charmed and cut down the unexpected churn rate.
Client Retention Strategies that Work for Growing Businesses
Rethink flexibility and stability
Recognizing the impact of the pandemic on clients and the industry.
It is essential to reimagine and refocus on the client retention strategies. The reconstructed strategies must embrace the balance of flexibility and stability in contract terms. Like you can offer pause on delivery. Businesses also have to introduce new restrictions and guidelines so that agencies can meet the current demand.
Some successful approaches involve referral programs for existing clients and strengthening the relationship with partner agencies who help in gaining new business.
Deliver a powerfully built onboarding program
The biggest mistake companies make is they seal a deal with a new customer, celebrate it, and immediately turn back to create other new customers.
Instead, take it as an opportunity and get engaged with them from day one to ensure their satisfaction. If you leave them to paddle on their own, you are doing yourself a huge disservice.
Therefore, it is important to deliver them with a powerfully built onboarding program so that you can engage with the new customers from the very first day.
Implement and improve through customer surveys
A business needs to know where its customers are struggling. And a customer survey helps to do so. Through the customer survey, you can know their pain points and challenges and can work to implement them. Implementing feedback is important otherwise there is no point in doing a survey.
Conduct surveys, identify improvement areas, implement accordingly, and share the positive results of the survey with customers based on their feedback.
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Offer surprise customer services
We all love surprises, and our customers are no different. So always think of the valuable offer you can provide them without their prior knowledge. Little surprises do not cost you a fortune. And surprises need not be huge always, even small handwritten notes, freebies, or extended product service can show how much your brand values them. It makes your customers trust you and stays with you.
So don’t let your customers make a request. Go forward and surprise them. Your good gestures inspire them to stick to your products and brand.
Build trust
Trust is essential for a successful business. And, those who don’t build trust do not go a long way. Consciously make attempts to promote trust between you and your customers by analyzing customer behavior.
Customer behavior data helps a lot in building trust with customers. Try continuously to make them accept your recommendations so that they won’t switch to your competitors. Nothing can break the trust of your customers more than the bad experiences. And things get worse when they spread the negative news in the market for your brand.
Provide excellent customer service
Eight out of ten consumers agree to pay more if they get excellent customer service. Customer service is the core of customer experience.
Customers won’t wait for days for the resolution of their issues. Valuing the time of your customer is the most important thing a company can do to enhance the customer experience. Provide the customer with multiple channels to submit their queries.
Indulge in CSR activities
CSR (Corporate Social Responsibility) is the efforts of the company to serve the community back. Customers today consider the CSR activities of a company while making a purchase decision. Consumers now are becoming more conscious socially. CSR activities do wonders for the reputation of a company.
To make it impactful, measure the results of your CSR activities and share them with your customers. It makes your customers realize that your company cares for the community and works to support it. It will make you win lots of points and directly affects the rate of customer retention.
Above are a few of our tips for client retention. We hope you found the tips useful and will incorporate them into your client retention strategies. Stay tuned with us for more business-related tips!
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