Regardless of the business season, retaining the existing customer is a determinant of growth and success. Research by Bain and Company indicates that a five percent retention on customers results to up to ninety-five percent increase in profits. Also, it has been found out that acquiring new customers can be twenty-five percent more expensive than retaining the existing ones.
Another study by Kolsky found out that sixty-seven percent of average consumers switch brands because of one bad experience. On the other hand, over fifty percent of consumers are likely to stick to a brand due to a positive experience. Below are some tips for improving customer loyalty.
Prioritize the Customer
According to a survey by Aspect Consumer Experience, a significant number of customers are conscious of the services they receive. If you want to retain clients, efficient customer service is a must. In most instances, the customer will judge the service they get through the interaction with the staff. A slight lousy experience with the staff is likely to send the customer away. Therefore, the employees should be accessible, friendly and helpful.
Loyalty Program Planning
Loyalty programs are one of the easiest ways of retaining customers – exactly why loyalty program planning is crucial. It is a reward given to customers for making repeat purchases. A study conducted by Loyal Report shows that sixty-six percent of consumers are willing to change their purchasing pattern to maximize on loyalty points. Another research by CrowTwist indicates that approximately seventy-four percent of consumers are likely to interact with the business that offers loyalty programs. These programs make the customer feel appreciated.
Make Relationship Beyond Business Interaction
Most customers place value not only on the product but also on the quality of service provided. Therefore, it is prudent to get more personal with your regular customers. Alert them when there are new products, promotions and other relevant information that show concern. Ask them for feedback and listen to their concerns. For instance, if a customer complains about a particular service, fix it and assure them an improvement. Make your business close to the customer as much as possible.
Make Use of Social Media
According to Smart Insights, there are over three billion social media users in the world. In the United States alone, over eight percent of the population is present on social media. Various social media platforms offer a variety of ways to get in touch with the customers. You should monitor opinions and concerns on social media and respond promptly. Nowadays, consumers are turning to various online platforms to ask questions and lodge complaints. Take advantage of the social media and connect with your loyal customers.
Nowadays, most consumers want better and faster services that are convenient. You will lose customers if your business does not provide the needed convenience. According to a survey by UX Magazine, convenience to products and services is a major deciding factor for most consumers. Think about changing the check-out procedures so that customers are processed as fast and straightforward as possible.
In conclusion, you should never underestimate the value of regular and loyal customers. Defective product and services can be rectified, but it is tough to win back a customer. Go beyond the above strategies and initiate a warm approach to every client. Focusing on the loyal customer is a necessity since they make more purchases than occasional ones.