Article by Scott Hersh
Companies the world over spend countless dollars on print ads, commercials, social media and other promotional endeavors to expand their market-base and ultimately gain new customers. But in all this marketing frenzy, investment in loyalty-building strategies can sometimes fall by the wayside.
Even of those businesses owners who understand the importance of customer retention, many surprisingly never go beyond offering discounts to their repeat customers. Not only may this strategy on its own be ineffective in bringing customers back, but it may cut deeply into profit margins that are already taking a beating from rising costs on everything from gas to health care.
If you are running a small business within a defined niche and are facing limited resources then investing in customer retention could be vital to your business’ health and long-term success. Here are a few points to consider:
Stay in touch with your current customers. When was the last time you attempted to contact your prior customers- whether as a follow-up on a completed sale or to offer future promotions or services? Depending on the kind of product or services you provide, these customers may forget about your business and the next time they are need of that same product or service, they could just as easily look for a different vendor.
I had my house painted almost five years back and now it needs another coating. Though I was very happy with the painter’s job and could have used his services again, he never contacted me since the job was completed. This time around, I got an attractive bid from a different contractor and moved on.
Whether you send newsletters, emails, or promotional coupons, make follow-up phone calls, or maintain an active social media presence, just making an extra effort to stay in touch with your customers can increase retention. But make sure that you don’t cross that fine line where “communications” become spam. Just because a customer “opted in” to receive emails or a newsletter, etc, doesn’t mean that you now have free reign to flood them with “helpful” suggestions, information, or promotions.
Focus on the customer experience. Common business sense dictates that if you consistently strive to offer your customers a great service and deliver value for the money they spend in your business then they will be more likely to return in the future. Sounds good, except these days it’s not enough. Today, the “customer experience” is getting a lot of sound bytes.
Though a customer’s experience may be hard to tangibly measure and define, the thoughts and feelings your customers attach to doing with doing business with your company can affect who returns and who doesn’t.
A friend of mine recently purchased a pair of boots from an online supplier. The company’s customer service staff was courteous and helpful throughout the buying process. Moreover, when my friend received his boots he saw that they were sent along with a whole bunch of “extras” like shoe polish and an additional set of laces. The company also had someone call shortly after the shipment arrived to make sure my friend was satisfied with his purchase. All these little actions created a satisfied customer who will no doubt seek the same address the next time he needs footwear.
Invest in your employees. Your employees are your best marketers, and this goes for the back-end employees as well as those working on the “front lines,” such as sales representatives and technicians. When employees feel valued, when they feel that their input is being properly appreciated and compensated, then they will be more likely to give it their best on the job. Moreover, employee satisfaction can be so infectious that it can lead to satisfied customers as well, and those satisfied customers are the ones who will be more likely to return.
In short, in the drive to improve sales in your business don’t forget those you are already serving. You want to keep your customers coming back for more, not kicking them out the door.
About the Author:
Article Provided by Scott Hersh, business author for http://bcablog.com – the official blog of Business Cash Advance .COM providers of fast working capital financing.
