Business owners everywhere know the value of keeping customers satisfied. Repeat business is the life blood of small businesses across the nation and around the world. One-time customers are good to have, but they won’t be a major catalyst for the growth of your organization over time.
For this reason customer retention strategies should always be a part of the conversation when looking at ways to grow your small business. Customer retention measures, at minimum, two things:
- how effective a business is at obtaining new customers
- how effective you are at satisfying current customers
Here are a few strategies to consider:
Know Your Customers
Relationships can go a long way in customer retention. Every customer has value. Each time a customer returns to your business, that value grows.
For the customer, it’s not just about what was purchased. They also care about the purchasing experience, and they’re willing to pay for it. A recent study found that 43% of customers spend more on brands to which they are loyal (Fundera, 2021). Customer service is extremely important to customer retention.
Spend time with your customers and get to know them. If possible, call your customers by name.
Don’t be Afraid to Invite Feedback
No one likes to be criticized, but allowing customers to weigh in on your product or service can help your business grow.
If you are willing to listen, your customers will tell you what they are thinking. Feedback is an inexpensive way to make your business better, and it can help you make valuable changes in products or processes.
Some effective ways of gathering customer feedback include monitoring reviews of your business, sending email and mobile surveys, engaging on social channels, or providing a feedback tool on your website.
Everyone likes to feel heard, and comments let you know how you’re doing. Inviting customers to provide feedback makes them feel like a stakeholder in the business and can keep them coming back.
Stay Connected
Get involved and be willing to share your knowledge. Becoming a familiar face around your local area can aid in building brand awareness.
You can also connect through newsletters, brochures, emails, and hand-written notes. According to Epsilon, 80% of customers are more likely to shop at businesses that offer a personalized experience. Familiarity can help you form a stronger customer base. Make sure your community and customers know you’re there.
Keep Customers Coming Back
Decide whether you need more incentives, better customer service, increased community engagement, or all three. Developing a client retention plan gives you an opportunity to turn first-time customers into loyal patrons and will be a dynamic part of succeeding in a competitive marketplace.