The whole point of being in business is to generate and retain a loyal customer base that’s both profitable and supportive. Without the love and trust of your customers, staying relevant in today’s fast-paced market is quite the challenge. Regardless of the product you sell or the services you provide, researching the most effective ways to keep your customers is a lucrative endeavor. A recent Harvard Business School study reported that saving just 5% of your customers can generate a 25% to 95% increase on returns. Customer retention strategies are worth a second look.
The Top Customer Retention Techniques Used by the Pros
Focusing solely on taking care of your customers is a path that leads straight to bankruptcy. As a responsible business owner, you must also consider the business aspect of any arrangement made with a customer. For more administrators, that goes without saying. For others, it is a delicate balance that is sometimes hard to maintain.
The following five techniques are proven to help you hang on to some of those valuable customers, without making yourself look like a sucker:
1. Keep an Open Line of Communication
Customers will not pay attention to you if you don’t pay attention to them. They want to know what your mission statement is, they have questions, and they need your help. Offering your patrons access to highly trained customer service agents is an obvious way to improve the reputation and trustworthiness of your business.
2. Identify with Your Projected Demographic
To bring in and hold on to the type of customers you prefer, it’s important to do some market research on your ideal demographic. Knowing how your typical customer thinks and feels is a terrific way to build trust for your brand while developing insights on industry changes and emerging trends. Since most people, whether they admit it or not, like things that mimic themselves, identifying with your demographic keeps your company relevant in an ever-changing society.
3. Appeal to the Frugal
Recent studies have been conducted by neuro-economics experts, or professionals in the business of researching what makes consumers tick. The studies show that at least a third of the population is extremely frugal, being most commonly drawn to the following words or phrases:
When your customers hear or read those words, they are compelled to do business with you. If your business model is set up to support your lofty claims, those once skeptical customers will return to your location or website repeatedly.
4. Go Above and Beyond
Within the confines of your company’s budget and business model, try to go beyond the call of duty for your customers. This technique should apply to all patrons regardless of how much money they’ve spent. Adding a little reciprocity to the mix can take your business a long way, so don’t be afraid to offer circumstantial discounts, repeat customers incentives, coupons, and sponsored contests that give away your product or service for free to the lucky winner. Give customers a taste of who they’re dealing with and get them hooked on the sugar for good.