Customer Retention is very important to an organization as it indicates that the company has done all it can to keep customers coming back. Customer Retention is important because customers are not going to just stop patronizing a company if it is losing its luster and customers are getting tired of it. In fact, many of them would go out of their way to patronize your company if it were still around and offering new services and products. Therefore, if you want to win customer loyalty and stay customers, you need to take care of customer retention. Below are a few reasons why customer retention is important:
A good example of customer retention strategies is offering a good incentive to keep customers. Incentive can be anything from free gifts, discounts, cash backs or even discounts on the first twelve customers that join a buying club. Another one way of getting customers back is providing them with great customer service. This means that the level of service that you offer your customers is excellent or very good and your support of your customers is above average. These are just a few good incentives to get customers back to your store.
Customer Retention is important to your business because retention will help you acquire new customers. Many companies that do not have customer retention strategies tend to go for the easy way out and focus more on the number of new customers they get rather than how they get these new customers. This means that they often miss out on getting new customers and end up focusing on the number of customers they already have. This can result in your losing existing customers to competitors, and it can also result in your not being able to attract new customers. If you want to increase the likelihood that you will retain your existing customers then you need to focus on customer retention.
Another way you can keep your customers is by providing them with great customer service. As you know, great customer service has a direct correlation with how well your customers will remember your company and the level of satisfaction that they have with your product or service. One great example of this is how a great marketing strategy may actually result in a higher retention rate. If you take a look at some companies who have a great marketing strategy but no focus on customer service then you will see that the retention rates are very low.
There are a couple things you can do to increase your chances of retaining your existing customers and keeping new ones. The first thing you can do is provide a great customer service program. This means you should be making it a point to meet with your current customers on a regular basis and talk to them about the services that you are offering them. In addition, you should have customer acquisition programs in place to bring new customers into your store. These acquisition programs should be designed in a manner that targets your ideal customer, your ultimate customer, to try and bring them into the store. While some people feel this method of customer retention is too “pushy” for the consumer, the fact of the matter is that there is something that needs to be done to get people used to coming into the store.
One recommended reading that will help you get started in creating a customer retention program is called “The 4 Pillars of Customer Retention”, which was written by Greg Marshall. In this book he states that he made it a point to take a “new, unshakable promise to customers that we will not break”. This is one of the best recommendations you can make to a new, unshakable promise to existing customers. When you make this promise your customers will trust you will gain their business. They will come back over again and you will gain loyal repeat customers who will come to you when they have a problem.