With the New Year, it is the perfect period to focus on your client retention strategies. Customer retention should be at the top of your priority list since recent studies are proving that it is about five times more costly to obtain a new client rather than profit from an existing client.
Small business owners are caught up in the startup process that many overlook the importance of sustaining business through current clients. Forbes weighs in, “This is counterproductive considering that it is far easier, about 50%, to sell to existing customers than to brand new prospects.” Knowing how to use this to your advantage can be extremely beneficial considering that about 80% of your business’s future revenue will come from existing customers.
Create a Retention Strategy
It is safe to assume that if you offer exceptional services your clients will be satisfied. This philosophy is true, in the short run. If you take a step back and look at the big picture, your client’s loyalty is earned. You have to persistently work for it because although you may be confident that they are satisfied, there is always competition. Marketing to your existing clients should turn into a habit because they are more likely to do more business with you. For this reason, generating a customer retention program is the best way to ensure your long-term sources of revenue.
Make Sure You are on the Same Page
It is important to know how your customers perceive you. While you may think that your clients are satisfied, there is a possibility they are not completely fulfilled. Make sure that what you are promising is what your clients are receiving. Noted on Forbes and based on statistics provided by Harvard Management, “80% of companies surveyed said that they offer superior customer service, but only 8% of their customers agreed with them.” Furthermore, companies that were surveyed did not know exactly why clients followed them on social media sites. It may appear that they are following your social media sites because of your product or service, but it is more likely that they are participating because of the discounts provided. You should be aware of these reasons because it can help you pinpoint strategies that are working for you.
It is much easier for a client to not express their dissatisfaction directly to you but it is much easier to express their complaints to others. Commonly, this is what tends to happen. Before your clients contemplate leaving, communicate a bad reputation or feel bothered, establish a relationship where they can come to you for anything they feel troubled with. Having open communication can be a gateway for them to let you know what is not meeting their standards. Marketinwizdom.com noted, “96 percent of dissatisfied customers don’t complain. They just walk away, and you’ll never know why. That’s because they often don’t know how to complain, or can’t be bothered, or are too frightened, or don’t believe it’ll make any difference.” Also, make sure that your staff is keeping you up-to-date with complaints that are being made by your clients. Make sure it is being reported how the issue was handled and the solution. Consequently, complaints are being logged with their solutions. This is the best way for you to keep track of how effective your retention system is.
The best way to grow your company is by not leaving your current clients unattended.