How to further improve Revenue through Customer Retention
Bringing in new customers is something that every business must do in order to survive, but your current customers should invariably be the focus of retention methods. While common sense dictates that retention keeps money coming in, you could also utilize customer retention methods that will increase your profits even more. The following techniques can do just that.
Create a Customer Loyalty Program
Many people only think of sub sandwich punch cards when they hear about customer loyalty programs. The fact is, though, a company owner in just about any industry can easily develop their own loyalty program. This will help keep customers returning to your company. Even better than that, however, is the fact that they will be driven to spend more so they can reach their loyalty reward.
Get in touch with Former Customers
Clients who haven’t made a purchase in some time aren’t necessarily former customers. In many cases, they simply haven’t been properly inspired to come back in. Research has shown that the potential for an existing customer to make a repeat purchase is upwards of 70 percent. In contrast, the probability of selling to a new prospect is 20 percent at best. Utilize as many ideas as possible to bring back those who have already made a purchase.
Why not set up a re-engagement campaign to touch those customers you haven’t in a while and give them some incentive to connect with you and ultimately purchase again. Re-engagement Campaigns are a great way to also touch your list and then start to market to them on a regular basis.
Look at Ways to Stay in Contact
After a re-engagement campaign, it is important to stay front in center of your customers. You want to be who they think of when they want to purchase what you have to offer. Look at using email marketing, text marketing, social media, etc.
Have Better Customer Service Training
Even if they do not provide it, most budding entrepreneurs understand the incredible importance of great customer service. Those who do provide it, though, probably don’t realize the full scale of how important it is. Statistics show that buyers are four times as likely to go to the competition if their problem is related to service rather than your product or price. From additional training to replying to negative online reviews, do what you can to offer awesome customer service.
Keeping customers happy is necessary for making an effective business. Luckily, customer retention isn’t an exercise aimed solely on keeping people around. If performed correctly, you will hold onto loyal customers while consistently increasing revenue.