Regardless of what type of business you run, a solid customer base is a key element to building a viable, long term, and profitable business. This is why your efforts to attract new customers should always be ongoing. With that being said, retaining the customers you currently have is even more important.
Here’s why:
You’re more likely to make a sale to a past customer than a brand new one. You’ve already built a relationship with your current customers, and that momentum can work in your favor. According to Marketing Metrics, the likelihood of making a sale to a customer you’ve already done business with is 60% to 70%. When you compare that to the 5% to 20% likelihood of selling to a brand new prospect, the value of your existing customer base becomes evident.
Retaining your current customers is less expensive than prospecting. The White House Office of Consumer Affairs estimates that it costs a business six to seven times as much to acquire a new customer as it does to retain a current customer. Based on that estimate, each of your current customers is worth six to seven times as much to your business as each new customer you recruit. Attracting new customers involves advertising, marketing, and prospecting and can also involve offering discounts and incentives, all of which cost money. On the other hand, current customers will not only continue to return on their own volition (that doesn’t mean they don’t deserve discounts and incentives), but as long as they continue to have a great experience, they will supply you with the cheapest and most valuable marketing that exists: word of mouth marketing.
Every customer you lose is more money and time. Let’s be clear, you’ll always be marketing and searching for new customers, but the intention is to always be adding them to your already solid base. If you’re simply replacing past customers, you’re fighting an uphill battle. This is why keeping your current base happy and coming back should be at the forefront of every experience.
4 Smart Ways to Keep Your Customers Coming Back
Here are four key strategies you can use to keep customers coming back.
1. Make outstanding customer service a priority.
Just about every business says that they go above and beyond and supply superior customer service, but let’s be honest, most just do the bare minimum. True superior customer service is showing the customer that you value their time, experience, and satisfaction, and that you’ll go to great lengths to show it. How you do this depends on your business, but even after a mistake or initial negative experience, go the extra mile to make things right. Most people can respect the fact that to err is to be human, but when your business makes things right in the best possible way, a customer will leave with a new-found respect for your business. When customers feel valued, they’ll reciprocate and show their appreciation and loyalty in numerous ways that can benefit your business.
When a customer has a so-so experience, they won’t have any incentive to do anything for your business, but when a customer is happy, odds are good they’ll repay your business with free marketing. People will often take time out of their day to tell others about their experience through social media, websites, and other online or mobile platforms. But remember, this can also work against your business if they have a bad experience, so make sure that you and your employees truly go above and beyond!
2. Solve customer service issues promptly.
Be creative in figuring out the best way to resolve issues that your customers have, and be sure they are actually resolved. Once you’ve lost a customer’s trust through an unresolved negative experience, it will take multiple (one source says a dozen) positive experiences to restore that trust—and that’s if they aren’t among the 52 percent who stop buying from a company altogether after a negative experience. For a large percent of customers, unresolved negative experiences continue to impact a customer’s buying decisions for two or more years after the initial encounter. If the experience left a bad enough impression on the customer, they’re likely to find another business in that two years. So make sure that all mistakes and issues are taken care of promptly so your customers don’t go elsewhere.
3. Create a better overall customer experience.
One-on-one customer service is important in creating a great customer experience, but so are the technical and policy aspects of your business. Your website, mobile strategy, company policies, customer responsiveness, and customer relations all play integral roles. Creating a better customer experience involves: reducing frustration, making mobile, online, or in person transactions simple, building emotional connections, delivering on promises, and ensuring that no matter how customers do business, they have a pleasant experience.
One key to acing the one-on-one aspect of customer interactions is to take note of the emotional state of the customer both during and after an encounter. If your customer leaves angry or agitated, you have a problem. Simply put, if you expect your customers to stick around, your interactions with them should always leave them with a positive emotional response. The more you inspire positive emotions in your customers, the more loyal they will be. They’ll show that loyalty by continuing to do business with you and recommending you to their friends and family.
4. Reward customer loyalty.
When a customer returns to your business over and over, reward them. Show appreciation by offering special perks for frequent and/or large purchases. Reward customers who recruit their friends via word-of-mouth marketing. There are many creative ways to show appreciation for your customers and starting a loyalty program will not only help you retain customers, but it will also encourage even greater loyalty down the road.
New is Good, Consistent is Better!
There’s no doubt that growing your customer base is important, but recognizing the value of your current customer base will keep your business going strong. A healthy customer base that loves your business will work wonders for your growth and future.
So make sure they’re happy!
