Did you know that it can cost up to six times as much to acquire a new customer than it does to keep an existing one? In order for long term businesses to survive and thrive in any economy, customer retention is of the utmost importance. A loyal client is the most profitable customer. In fact, a study conducted by Harvard Business Review found if organizations increased their customer retention rates by 10-15%, they can potentially double in profits. With that being said companies seeking to increase their client retention rates should take heed to the following solutions: a rewards program, monitoring high-risk clients, assess dissatisfaction areas, use project planning software and face-to-face marketing.
- Rewards Programs- Giving shoppers incentives for their purchases can improve consumer stimulation. This is usually done through discounts, promotions and active sales. By giving something back to consumers, the existing relationship strengthens and generates a sense of care to the customer. In turn clients will stick with your products and more than likely began purchasing more.
- Monitoring High-Risk Clients- Consequently, the average business loses about 20% of its customers annually by neglecting to pay attention to customer retention. Through monitoring high risk clientele you become better suited to act quickly and detour current customers from taking their business elsewhere. This can be done by using a system that observes and targets early warning signs for decreased usage, high return rates and multiple dissatisfaction customer service calls.
- Assess Dissatisfaction Areas- After establishing you have higher risk customers, evaluate what seems to be the problem and address key sources. A lot of times it is found that the issues come from within the company itself through sales and customer support. In that case you may want to highlight typical billing issues and better educate and train your customer service representatives. Or you may want to increase the sales department authority to offer and secure sales and promotions to these designated consumers.
- Project Management Software- It is a system that integrates all project related information in to one central location, including document management, billing and tasks. Businesses profit from the use of project management software because it increases a client’s trust in the employees handling their work and the quality of the work. Likewise, the businesses obtain solutions faster than other means and can trust in the results.
- Face-to face marketing- In other words getting out on the streets to promote sales through hands on contact with your clients. This gives you the best understanding of your customer and in return the client is encouraged through the personal contact with their producers.
Stephen Craig enjoys writing about best business practices and new management methods to increase client satisfaction.