Statistics show that improving the customer retention rates of your small business vastly increases profit. It’s far less expensive to keep the customers you have than to acquire new ones, and satisfied customers increase awareness of your business through word of mouth. The primary key in good customer relations is clear communication. Here are some tips to help you accomplish this.
Personalize Your Approach
The first step in customer retention is discovering who your customers are. Conduct market research to identify your target customers, and focus your message on meeting their needs and fulfilling their desires. People form strong relationships with brands that exhibit shared values. Stay positive in your approach, highlighting the advantages of using your products or services, rather than negatively emphasizing the drawbacks of not remaining loyal.
Make the extra effort after sales to offer your customers further information and education. Emphasize the value of what they are purchasing, offer follow-up training, and recommend other helpful products. When you add features or otherwise improve existing products, don’t just announce the upgrades, but demonstrate how much more they can accomplish as a result. When marketing your products or services, remember that words have power, and use positive words such as new, free, and instantly.
Provide Superlative Service
One of the integral factors in customer retention is excellent customer service. Taking the time to be courteous and helpful rather than hurried leaves a lasting impression. When customers report problems, it’s important not only to solve immediate situations, but also to look for root causes so you can avoid similar difficulties in the future.
Handwritten thank-you notes are among the least expensive but most effective customer retention strategies. They are intimate gestures that make customers feel honored. Long-time customers also delight in becoming gold members or VIPs. Consider a referral program in which loyal customers that recommend your products or services to others receive cash rewards.
For more advice on customer retention, get in touch with All Things Commercial Capital.