Whether you are starting out or already have a thriving business, you might have heard time and again that the cost of acquiring new customers is five times more than retaining the existing ones. That's true for many businesses amid the intense competition, especially in the crowded e-commerce arena, where purchase rate is of paramount concern.
Customer retention is the key to ensuring your business is profitable and remains viable. According to market research, increasing customer retention by about 5% can lead to profit increases of up to 95% in the long run. It ensures your customers make repeat purchases, are satisfied with your products and services, and will not likely defect to your competitors.
4 Strategies to Ensure Customer Retention in Your Business
- Build Quality Customer Experience
In the current marketplace, where competition is becoming higher than ever while loyalty is taking a downtrend, you need to stay top of mind. You should communicate with your customers regularly and provide up-to-date information about your new products and service to build trust. You can use various personalized communication channels like web chats, text messages, emails, or social media to target a specific customer segment to get them hooked to your business.
- Ask for Customers' Feedback
One of the key strategies to retaining customers is knowing how they feel or think about your business. You can send them different survey templates to determine what they like or dislike to help you strengthen or refine your approaches to meet their needs and expectations. Feedback makes customers feel involved and appreciated, building trust and loyalty to your brand.
- Follow Up with Customers Even After the Sale
After-sale, most dealers cut communication with the customers. As a result, most customers lose the initial excitement and will likely default to their experience before interacting with your brand. Focus on engaging your customers to ensure they stick around, and focus as much as possible on removing the friction that may develop after the sale.
- Reward Loyal Customers and Promoters
If your customers and promoters don't feel appreciated, it takes a single mistake or a better opportunity to jump to your competitors. It is crucial to reward them depending on how long they have been with you or the number of products and services they purchase to ensure they stick around.
Improve Customer Retention with Vanguard Dealer Services
Are you looking to retain your customers to increase your return on investment? Vanguard Dealer Services has your back. Contact us today to get started.
