Everyone knows that customer retention is very important but not everyone knows exactly why it is so crucial. Before we give you 3 easy tips on how to improve your customer retention rates, here are a few facts to get the ball rolling:
- Harvard’s Frederick F. Reichheld conducted a study depicting that “by increasing customer retention by 5%, the business’ profits increase by anywhere between 25% and 95%”.
- The likelihood of upselling to a loyal customer is between 60% and 70%.
- Based on Harris interactive, 2011 customer service experience improvement study – 89% of consumers purchase from a competitor following a poor customer experience.
- Rudy Newell – Legner, writer of Understanding Consumers, states “70% of customers will do business with you again if you resolve their complaints”
- Rockefeller Corporation – “68% of customers leave because they think you don’t care about them”
After looking at these stats, it should be a no brainer that if you are not putting energy into customer retention and loyalty, well, you’re not making as much money as you should be making!
Here are 3 easy tips that could make the world of a difference if properly applied. These are tried and tested methods that are proven to work. If you want to see an increase in business this year, this is one of the ways to do it.
1. Becoming your client’s expert
The idea of becoming their trusted advisor when it comes to your field of work, directly translates into a stronger bond between you and your client. The more that you work on building that, the more that the trust between you two will grow and will make your client substantially less likely to go to competitor. In certain field of work such as IT related businesses or technology related businesses, this trust quickly translates into a dependency for accurate information, and at which point, it will take a lot from you to convince them to go to a competitor.
2. Connect with your clients online
This aspect is often overlooked by small to medium businesses but it is the best, costless method, to increase your clientele and build stronger relationship with your clients. By having a linkedin group, a twitter account, a Facebook page and for those concerned, an instagram account, you will be able to directly communicate with them when there are:
- Product updates
- New promotions that need to be announced
- News pertaining to your industry
- And a variety of other good stuff!
You will have direct access to your clients as well as potentially their friends and if anyone needs yours services, they will know who to ask! Marketing 101: Word to mouth is the best form of advertisement. That being said, think of social media as the virtual word of mouth.
3. Believe in something!
Unless you are already doing it, a study by the Corporate Executive Board that included 7000 consumers from across the United States concluded that: 64% of consumers “cited shared values” as the main reason for having a strong relationship with the company that they did business with. There are tried methods to see what exactly increases customer loyalty and retention and if you want more retention, start telling your clients what you believe in!
You want to improve your customer retention rate? We have helped more than 12,000 Canadian businesses – let us help you.
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