How can you increase your customer retention rates?
If you are asking this question you are on the right track to a profitable business!
One of the most powerful and essential systems for growing your business is how you nurture your existing customers.
Most of the time, your existing customers are the ones referring new prospects to your business.
Plus, word of mouth is the top way small business owners get new customers. (Which I found out after interviewing 3000+ small business owners!)
This combination means your existing customers are extremely valuable to the growth of your business.
Plus, it is way more expensive to acquire a new customer than to keep an existing customer happy. The chance of a sale from a new customer is only 5-20%, whereas from an existing customer, it is between 60-70%.
With that in mind, let’s look at 22 ways to retain happy, business-building customers.
Surprise and Delight
Think of things that make you feel special in your life and do that for your customers! (Ok, maybe a few of these are best post-Covid!)
People love being appreciated. It’s why they stick around!
Psychotherapist Marcia Naomi Berger said for NBC, “Behaviours that get rewarded are likely to be repeated.”*
If you appreciate a customer who buys from you, then they will buy from you again.
Support and Share
Increase your retention rates by supporting your customers!
People want to be a part of a community that cares for them and values them. Psychiatry Instructor at Harvard Medical school, Joseph Shrand, M.D states that value leads to trust.**
When you value your customers, they trust you.
And people buy from businesses they trust.
Your customer service is an important aspect of your retention rates.
Researchers found that 85% of customers increased their investment in a company after a positive experience.***
A system to increase customer retention rates
It is common to take those deeply valuable relationships with your best customers for granted.
Sometimes it can feel like a rat-race trying to get the next customer or sale. Slow down, breathe and connect with the customers you already have.
It feels good to make others feel good!
Put in place recognition systems that celebrate and support these relationships, and be open to constructive feedback. This will increase your customer retention rates.
Happy customers will buy from you again and most likely tell others about your valuable business.
What’s your thoughts?
Is there a past experience you had with a company that made you feel valued? Let me know in the comments!
Until next time, enjoy your Entrepreneurial Journey.
*DiGiulio, S. (2019, October 7). Why compliments make us feel so good — and how to get better at giving them. NBC News. https://www.nbcnews.com/better/lifestyle/why-compliments-make-us-feel-so-good-how-get-better-ncna1062546
**Shrand, J. A. (2020, May 18). Why Do we Need to Feel Valued? Psychology Today. https://www.psychologytoday.com/ca/blog/the-i-m-approach/202005/why-do-we-need-feel-valued
*** Beaujean, M., Davidson, J., & Madge, S. (2006, February 1). The ‘moment of truth’ in customer service. McKinsey & Company. https://www.mckinsey.com/business-functions/organization/our-insights/the-moment-of-truth-in-customer-service