Keeping Loyal Customers Satisfied and Coming Back
Customer attraction and growth are the lifeblood of business. Without customers, none of us will survive. But entrepreneurs often miss the importance of retaining customers.
It’s one battle to catch people’s attention in the first place. It’s another to keep capturing it over and over. According to a 2015 Microsoft study, the average consumer’s attention span is only eight seconds long.
A new customer only has a 5-20% success rate of selling. But repeat clients have a 60-70% conversion rate and are more likely to refer friends. Wouldn’t you think it’d be easier to get a repeat client that you already did a 5-star job for? If so, you would be correct.
This is why it’s necessary to keep customers satisfied and implement customer retention strategies in your business. We’ve got some ideas on how to do that in our handy blog on scaling your digital marketing agency.
Why You Should Care about Existing Customers
While there’s something alluring about “capturing new customers,” repeat clients result in a greater ROI. They cost business 5-25X less. Current customers are the easiest to target and most predictable source of revenue for your business.
- Better conversion rates
Existing customers have already purchased from you in the past. Assuming they had a good experience, they’ll buy from you again. Existing customers are the easiest to predict and satisfy, because you already know their needs.
- Higher Profit.
In the long run, existing clients are less expensive than new clients. Your marketing costs can be as little as zero. On average, it costs 16 times more to build a relationship with a new customer than to maintain an existing customer.
Since your current customers trust and value what you do already, it becomes easier to convince them to buy from you again.
What better source for improvement, than from your existing customers? Listen to your customers’ feedback, find out what drove them to buy from you, how they found you, what they thought of your customer service, etc.
Find out as much as you can from their experience and apply it to future clients to improve and retain more customers. If you need some ideas of what to ask, check out this useful tool we created on how to find your client’s pain points.
Customer Retention Strategies that Keep Customers Coming Back
Even if your customers don’t reach out with feedback, you should establish a system for proactive communication. One way to do this is a communication calendar.
This calendar simply keeps track of your customer communication. It tells you the last time a customer reached out, and lets you know when existing customers aren’t interacting with your brand.
This will help you know when you need to launch promotional offers or send emails to remind customers to renew a subscription.
Customer Loyalty Program
Have you ever been to a coffee shop that offers “stars,” or a Fro-Yo shop with punch cards? After each purchase, you receive a star or a punch that ultimately builds up to receive a free coffee or Fro-Yo.
This is a great strategy to get repeat clients. It encourages them to buy from you, and keeps them coming back. Customers feel as though they’re getting more from their experience than just your product or service.
Cultivate a Unique Experience
Have you noticed how some women go to salons that charge over $100 for a pedicure, when they could easily go to a salon that charges $30? Why are they willing to pay more?
It boils down to the experience. People often pay more, as Starbucks proves, for an enjoyable experience than a product or service by itself.
For example, people pay more to stay at resorts instead of hotels. They know they have access to more amenities, better service, and have to put in less effort to find things to do. You pay more for a Michelin Star restaurant and the Chef Experience because it’s just that: an experience.
People want more than just a transaction. They want memorable and enjoyable experiences only available through the effort of other human beings. There’s a difference between customer service and customer experience, and it requires creating a unique and satisfying journey throughout the entire interaction with the brand.
Create Tools of Convenience
Entrepreneurs can use several approaches for customer service and convenience. For example, Whole Foods offers grocery delivery, Starbucks has a mobile order and pay app, Amazon delivers quicker than anyone else.
Each of these tools keeps customers coming back for one simple reason - convenience. The path of least resistance is a powerful, persuasive tool. How many times have you gone somewhere for lunch, just because it was the closest place? It was convenient.
Think about your products and services and see what you can offer that will make your business stand out and offer convenience to your customers.