Customer retention refers to the steps taken by a company to retain its customers over a specified period. Every business leader focuses on customer retention these days. And it makes many, out there, wonder how businesses are abiding by this complex functional approach. The main motive of this is to retain as many customers as possible through customer loyalty programs. Businesses are ready to share their expertise in retaining customers for a longer period. These are done based on sales methodology, business culture, and staff training along with keeping track of the customer demographics and responding to it. Customer retention takes sole care to the customers and improving their experience.
Customer retention should be the core focus for small businesses if they want to be on par with the big corporate. It is easier for big businesses to acquire and retain customers by implementing advanced CRM programs. But the same is not the case with small businesses. If we study and analyze the market properly, some customers seek to avail of costly services. Small businesses should focus on adding value to customers.
Small businesses, whether in service or retail industry has a bigger advantage over enterprise-level businesses. They can implement impressive CRM programs that will give them an upper hand to acquire the market share by retaining customers in its true sense and offer a positive experience.
And consumers today are more inclined to buy products and services who provide a personal touch to their buying experience. And this is one reason why big businesses choose direct marketing, franchising, or network marketing in order to sell their products and services. Consumers today appreciate when a business provides them with additional service. People hardly give importance to the price point of the product considering that they are getting value since the time they are purchasing to the time getting their hands on their product. A simplified resolution to customer retention is the successful element of better customer experience.
A business can ensure an amazing experience to its customers only when they follow these 7-step process acquired with a personal touch.
- Authentic and supreme-quality products and services
- Display customer appreciation
- Responsive and instant customer service
- Guide them with the usage of products
- Share customer feedback with other potential customers
- Enlighten the customers about the market and business value
- Ask for feedback and opinions based on customers’ experiences
Customer experience takes immediate place after the sales process. If small businesses want to retain their customers, they have to make use of all communication sources such as inbound & outbound phone calls, letters, emails, web sites, and event attendance. A small business needs to meet the claims about its products as promised by them for a positive response from the consumers. Customers should realize that the money spent on products is worth it if the products meet the claims mentioned by them.
Customer retention doesn’t necessarily have to be a costly affair. If you see your customers as an investment for your business, you actually can get the desired result for the money paid for customer retention programs. Retention only improves when a business provides an easy hassle-free experience to the customers and it adversely increases the sales of that said business.
You should only pay 1/5th of the amount spent on acquiring new customers to retain them. If you follow the 7-steps to personal touch process, you are likely to acquire potential customers. This is because when a customer buys a product from you and have a positive experience, he/she is likely to refer you to others as well. Word of mouth plays an important role here and you don’t even have to market your products. It is a proven fact that retaining customers is pocket-friendlier than acquiring them.
But, some businesses fail at retaining their customers for a longer period. It is simply because of a lack of time. For an owner, it can become overwhelming playing so many roles at the same time. Not every business has the means to be in constant touch with the consumers. Business management is so much more than just selling a product. It involves hiring, marketing, accounting, firing, products & services production, and so on. In small businesses, owners do all these mentioned tasks and deliver the products to their customers. But keeping a balance in acquiring and retaining existing customers is the most important factor. Revenue, Retention, and Referrals are the three R of any business. You should focus on acquiring and retaining one customer at a time as it will fetch you more customers and profit in the future.
If a business fails to implement a successful retention program, hiring a retention expert would be a wise decision. A business should look out for vendors, employees, and contractors with the same amount of passion to provide a satisfactory customer experience. Customer retention is not only about focusing on selling a product more to the consumers. It should mainly focus on satisfying them with the entire selling process. It is the responsibility of the business to go out of their way to turn the negative customer experience into positive ones. All a business needs to do is put them in the customer’s shoes and understand why good experience is a necessity from customers’ perspectives so that it leaves a positive mark on the customer.
Retention of customers is easy when you understand the basic needs of your customers. It is all about providing them with a positive satisfactory experience.
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