Promoting a small company may be difficult and costly. Nevertheless, a large portion of that cost is spent on acquiring new clients; keeping existing clients is significantly less expensive. As a small company manager on a shoestring budget, it makes economic sense to maintain as many customers as possible.
Keep in mind that several businesses of all sizes lose a significant number of consumers each year. The average loss is roughly 20%, but in certain industries, that percentage might be quadrupled. Anyone could see how simple it is for company development to stagnate – or even revert – when this accumulates over time.
As a result, it's critical to seek better strategies to maintain your consumers. Start by looking at these five ways you can incorporate them into your small company strategy.
Accept criticisms with open arms
Consumer complaints might be difficult to handle, but they will occur. Sometimes, instead of the underlying problem, a company will be assessed on how it handles criticisms.
Therefore, to begin on your retention plan, think about how you might improve your complaints responses. You should also strive to devise a mechanism for tracking complaints since it is common knowledge that many dissatisfied consumers will remain quiet.
You could have a second opportunity if you can reach out to them before they leave home and reflect on the experience. That's because a client does not report a negative experience does not imply it did not happen. Also, there's a good chance they'll tell others within their friendship groups about it.
Make contact with your clients regularly
Keeping in touch with your consumers on a frequent basis can help you remain top of mind. There are some alternatives to choose from. Post-sales calls are great for checking up on customer happiness.
Email may also be used to send out bulletins and promotional deals based on earlier transactions.
Email marketing may assist in client retention. It may also help you increase the future value of your clients. It's a vital strategy that several small companies overlook; don't let your firm fall into that category.
Invest in a corporate phone system
Let's face it, there will always be a large number of customers who want to call you a small business before making future purchases. And we hope your small company is expanding, which indicates that you're doing something well. However, your small company will surpass your private telephone lines at some time.
Upgrading to a corporate phone system can really make your job easier, and boost your bottom line, whether you're employing additional employees or require enhanced calling and the latest tools and features.
A corporate phone system will give your small business a more "professional" image, which will definitely improve your customer retention. Some of the best providers are Nextiva, ULTATEL, and RingCentral.
Initiatives that reward customer loyalty
There's a simple explanation why huge supermarkets and shops provide loyalty programs to their consumers. It's just because they're working. Customers are significantly more inclined to repeat purchases once they start receiving incentives for making these purchases, and the effects may be astounding.
Not only can such initiatives help you gain consumer loyalty, but they may also help you learn more about their buying patterns. It gives you a lot of information about the things they enjoy or the pace at which they purchase them, for an instance. As a result, you can utilize this crucial information to create an appealing bundle that will entice them to come repeatedly.
You may also give them special discounts if they spend a particular amount of money on your company or on your products. There's a lot you can accomplish — the only thing preventing you are your own creative limitations.
Everything should be measured
The last tip is perhaps the most crucial one, and should not be overlooked. You won't know how effective your new approaches are until you can measure their effectiveness. You'll have to figure out what your retention rate is weekly, monthly, and yearly. There are various methods to do this, but the easiest is as below.
Take the total amount of clients you've serviced throughout the chosen time period. Calculate the number of new clients you've acquired and deduct it from the total. Lastly, split the value by the original amount of customers.
This should give you a rough estimate of how many individuals are still utilizing your services. It will be simple to identify wherever your new changes are functioning once you have that number.
Customers who test your goods or service once or twice aren't your best customers. Every company wants clients who will stick with them and promote them to their friends and family. Customers, on the other hand, will only remain with you if they sense value in your products. That is exactly what client retention entails!
Simple actions like hearing from your consumers and improving the client service will help you develop your bonds with them. Use the strategies outlined in this article to maintain your current clients happy and increase your income.