For small businesses, retaining customers is an incredibly important part of growing a sustainable business.
We are in the business to earn and keep customers.
According to research from Harvard Business School, increasing customer retention rates by 5% increases profits by 25 to 95%.
What is the meaning of customer retention?
It is how well you keep your customers over a period of time.
Retaining an existing customer is actually cheaper than acquiring a new customer. So how do you improve your customer retention rate?
For you to increase your customers retention rates, consider the following
Position your brand
Have a clear way of communicating and engaging with your customers for them to pay attention to you.
Market to your customers AND educate them too
For customers to do business with you again and again, you market to them and educate to them too. Becoming the “go to” place for answers is an integral way of creating customer loyalty.
This will keep your potential customers come back. They will always choose you at any given time. Surprise does not need to be costly discounts and specials. It can be giving something extra that was unexpected. A card in the mail, a $5 Starbucks card, or some form of recognition.
Provide timely customers support.
Use the channels that your customers mostly prefer when offering support online and remember that speed is secondary to quality.
The tactics above should give you some ideas for approaching customer’s retention.
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