It costs five times more to acquire a new customer than it costs to retain a current customer.
As a business owner, you’re probably aware of this stat. This cost might have increased or decreased over the years, but one thing still holds true: acquiring a new customer is harder than retaining an existing one.
With that in mind, what’s your business’s customer retention rate? How many return customers do you count in any given month?
If you’ve been struggling with retaining your existing customers, don’t lose hope. In this article, we’re sharing a couple of effective tips you can use to keep your customers coming back again and again.
Offer a Standout Product
Put yourself in a consumer’s shoes for a moment.
Of the products you use every day, you have a favorite for each task, right? What makes you decide your favorites? If you’re anything like the vast majority of consumers, your favorite products are those that get the job done efficiently and quickly.
Does the product you sell meet those conditions?
If not, you’re shooting yourself in the arm. For your customers to keep coming back, your product simply needs to be the best in the market. If your competitors are offering a better product, it’s easy to see why your first-time customers aren’t coming back again.
Always collect customer feedback and use it to improve your product. With data management technologies that offer services such as embedded analytics now easily available, you’re in a better position to use the data you collect to improve your product.
Offer Outstanding Customer Services
A great product coupled with great customer service is the recipe for building a successful business. Unfortunately, getting this combination spot-on is easier said than done.
Providing excellent customer services is a challenge for most businesses, especially because customer preferences are always changing. That being said, there are surefire measures you can put in place to increase customer experience and, consequently, loyalty.
First, give customers multiple ways to contact your business. Ensure there’s an active phone line, email address, live chat on the website, as well as social channels.
Second, ensure you aren’t keeping your customers waiting for responses. This means investing in a dedicated customer service team, but the return on investment is worth it.
Design a Loyalty Program
A great product and excellent customer service are a powerful combination and will make you good sales, but truth be told, they aren’t enough to keep your customers coming back.
The piece that’s missing from the puzzle is a loyalty program.
You see, customers want to be rewarded. They want to know that you value them. And the best way to do this is to run a loyalty program.
A common strategy is to have a point-based program. Customers accumulate points as they shop, which they can redeem later on.
You can, however, get more creative. For instance, you could reward your customers with a free product after every fifth purchase.
That’s How to Grow Your Return Customers!
Return customers are your business’s bread and butter. You don’t have to worry about marketing to them, because they’re already hooked to your product or business.
However, a lot goes into making a customer keep coming back. With this guide, you now have top tips you can use to make that happen.
Keep reading our blog for more small business tips and advice.