How To Increase Customer Retention
Having a successful business involves a lot more than just bringing customers through the door. It involves ensuring that people who visit your business once will visit again. Your company will benefit more from customer retention than constantly trying to get new customers. If you are unsure how to accomplish this feat, then here are some pointers.
Provide Special Offers
When a customer buys a product from you once, you can be reasonably certain they will do it again. You simply need to give customers a reason to come back to you. Therefore, it may be in your best interest to provide customers with coupons and discount offers if they come back. Retail stores can have employees toss a 10 percent off coupon in customers’ bags when they check out. This will make them more inclined to return in the near future.
Schedule Time With Consumers
Depending on the services your business provides, it may be prudent to follow up with customers to see how they are enjoying their purchase. A quick phone call or email can really make a difference in how consumers perceive your company. Customer relationship management software can make this much easier.
A relationship is much easier to foster if you add personal touches to all forms of communication. Instead of sending a generic email with no greeting, set it up to where you can input the person’s actual name. Small things like this really make a difference in customer retention.
Keep Track of When It Seems Like a Loyal Customer May Leave
When a loyal customer visits often enough, you should be able to track a pattern. If you notice the individual’s shopping habits are beginning to drop off, you need to take immediate action. Perhaps you could offer a more substantial discount to get your VIP back into your store.
Focus on Cross-Selling
Another way to boost retention is to offer complementary products to what someone has purchased in the past. This is particularly helpful when someone has purchased something they will likely not need to buy again any time soon. If someone buys a television, then you may want to try to sell an entertainment system, new speakers and similar products that would get the customer back inside your store.
For most businesses, most of the profits will come from a small subsection of customers. Additionally, with enough loyal customers, you can reduce the expenses set toward marketing and enjoy greater profits.