As a business owner, your success hinges on the loyalty of repeat customers. New business is always great, but regular clients drive sales and long-term revenue growth.
And the numbers don’t lie. Around 61% of small businesses say that half their business comes from repeat customers. Even just a 5% increase in customer retention can increase your company’s profitability by 75%.
There’s an art to customer service and creating a good relationship with clients, though. As you build your brand’s reputation, here are some helpful tips on how to retain customers.
Deliver What You Promise
Stand out to customers by delivering what you promise. This is one of the easiest ways to make a positive impact on them and the number one rule of doing business. There’s power in keeping promises and you’ll be sure to impress your clients.
And don’t overpromise results. Simply committing to the exact outcome or result you’ve promised a customer lays the foundation for trust and a long-term relationship with them.
Engage Followers on Social Media
Many business owners think social media is a space to attract new customers. And they aren’t wrong about that. But having an active social media presence and regularly engaging with your customers is also an easy way to retain their interest in your brand.
Your social media pages are an excellent opportunity to build ongoing relationships with customers. It’s also a space where they can share their thoughts about your products – both good and bad – and feel heard.
Create a Loyalty Program
Entice repeat business by creating a loyalty program for regular customers. These programs help drive sales by encouraging customers to spend more money with your company more often. Offering the best deals in your industry also puts you a step ahead of your competition.
You can set up your loyalty program in several ways. Your customers can earn points for purchases that they can put towards future discounts or you can offer free gifts for birthdays and other important milestones. You might also consider offering incentives for referring your business to friends and family. Read more now about how to easily set up a loyalty program for repeat clients.
Offer Competitive Pricing to Retain Customers
Establishing a pricing strategy that offers rates competitive in your industry is another way to retain customers. This means staying abreast of your competition’s prices and trying to stay within the same range.
These days, it’s easy for customers to go online and quickly compare prices among similar businesses. Even if they prefer your company, if the difference in price is drastic, they might value financial savings above brand loyalty and choose to shop with your competitor. Offer competitive prices to keep your customers coming back for more.
Connect with Your Community
Community outreach is another way to increase customer retention. Shoppers tend to respect companies that care about their communities. This can lead to longer – and stronger – relationships.
Consider making donations to nonprofit organizations, sponsoring local youth programs and sports teams, or partnering with community groups. Studies show that being a good member of your community attracts customers and impacts their attitudes towards your brand.
Admit When You’ve Made a Mistake
If your business makes a misstep along the way, you wouldn’t be the first to face the fallout from a potential PR nightmare. Luckily, customers have respect for companies that remain transparent through a crisis. If you’re quick to take ownership of your mistake, your clients will be more likely to stand by your side.
You need to be clear as you manage your mistakes, though and don’t shift the blame to others. Then, apologize. And be sincere about it because customers can see through insincerity. And finally, fix the problem.
Ask for Feedback
By sending out customer surveys, you’ll receive loads of information to help you better understand how they feel about your brand. Use this information to create a better customer experience.
This feedback is all the data you need to stay in tune with your customer’s needs and ultimately, it will help you increase retention. Use their feedback to inform business decisions and to stand out among the competition.
Send Carefully Crafted Email Newsletters
Stay in touch with customers through carefully crafted email blasts. These newsletters are a way to reengage them and bring them back to your brand. Ultimately, it’s all about fostering a relationship to drive repeat sales.
If you aren’t engaging in email marketing, you need to start immediately. Email marketing, which often targets previous customers, has an incredible return on investment. For every $1 spent, businesses see $38 in return on average.
Teach Them Something New
When using social media or sending email blasts, don’t immediately go for the hard sell all the time. That’s likely to turn off repeat customers.
Instead, try to teach them something new. Think about what your audience’s interests and concerns might be and then use these outlets to educate or entertain them. They’re more likely to engage with what you have to say if you’re not just trying to sell to them.
Want More Business Tips?
Now that you have some new ideas for how to better retain customers, check out our blog for more business tips and tricks.
We’re dedicated to sharing positive and practical news and ideas with readers, and our business section is full of useful strategies on building your brand and driving your company’s growth.