How to boost customer retention

For businesses of any size, acquiring and retaining customers should be a leading strategic priority.

Both acquisition and retention are necessary parts of a successful business. However, Hubspot has found that it costs anywhere from 5 to 25 times more to acquire a new customer than to retain an existing one.

Creating a customer-centric business model will not only help you retain customers, but you will also be able to generate long-term brand loyalty. Read on to learn how to transform your operations to better serve your existing clients.

Prioritizing customer service
The first step to better retaining your customers is to provide them with high-quality and consistent service.

Research from Ameritas has found that nearly 70% of consumers prefer to shop at a company that has excellent service. Consider every interaction a customer has with your brand — these moments can be as simple as a phone call checking your store hours or as complex as handling a product that was shipped to the wrong address. No matter the context, your brand's values should be reflected in how you manage every situation with your customers.

Ensure that this becomes a key part of your business by making ongoing education and feedback a part of your company culture. For your employees, this will help them to better understand how to conduct themselves even in situations you may not be able to predict.

Customer service is one of the most important aspects of improving your overall retention.

Loyalty programs
Rewards programs are not only a great example of customer service, but are also a way to show customers that you truly appreciate them.

In a survey from Wirecard, 75% of consumers said they were likely to make additional purchases after receiving a reward from a brand. Loyalty programs range in complexity from providing every customer with a physical punch card to work up to a specified percentage off a transaction, to using software to generate personalized offerings based on past purchases.

When selecting which option makes the most sense for your small business, consider your customers and what they would be most interested in.

Ask for feedback and listen
While everyone has heard the old adage that "the customer is always right", the steps you take after receiving feedback are even more important.

Spend time each week monitoring your social media to identify and mitigate any issues customers may be experiencing. This not only provides you with an opportunity to solve a problem before a customer permanently writes your brand off, but it also can help you to find ways to improve processes moving forward.

Boosting retention through customer service is one of the most cost-effective ways small-business owners can grow their companies.

Need additional assistance? The Law Offices of Donald W. Hudspeth, P.C. assists businesses with corporate matters and various other types of legal concerns. Please call 866-696-2033 or contact the firm online to make an appointment.

Categorised in: Starting a Business in Arizona

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