The Value of Keeping the Right Customers

The Value of Keeping the Right Customers

Retaining Customers vs Marketing for New Customers

The big goal for most businesses is to always have a good marketing strategy to attract new customers. That is all good and even necessary for businesses; however, if the pandemic of 2020 taught businesses anything at all, it would be recognizing the value of retaining loyal customers. With all eyes on the pandemic, most would agree that it was the loyal customers that actually helped keep many businesses afloat during the height of the pandemic. As many businesses were scrambling trying to adjust to the emergency, it was those loyal customers who were there to continue to get the products and/or services as always even during the crisis. It is always exciting to add new customers into the fold by having great marketing campaigns and strategies, but those who are loyal customers are the one who help businesses meet their financial goals. Therefore, one should agree like Dr. Jordan Sudberg that customer retention, basically the art of understanding the value of keeping the right customers, is a key factor for most businesses. Now, one may wonder just how to do that. Here, tips on how businesses can keep and retain loyal customers will be discussed. Let’s take a look.

Tips

Tip one – Customer retention is more cost effective. Businesses that keep their eye on the bottom line will agree with reports that state it is less expensive(in fact, almost 7 times less) to keep an existing loyal customer than to gain a new customer. In fact, a loyal customer who loves the brand will refer and recommend it to others for free. Yes, pure free advertising with no costly marketing campaign

Tip two – It is vitally important to maintain communication by keeping in touch and encouraging customer interaction. Make customers aware of rewards programs, promotions/specials and product updates along with any other informational content that they will find relevant. Keep that communication going with contests and asking customers to share their experience and stories. Have customer contests and drawings to help encourage interaction. Reach out to customers who have been missing in action.

Tip three – Take advantage of the various uses of social media. Social media can be a very useful tool as businesses can monitor customers’ motivations, opinions and interests. One of the many little gems with social media is that businesses can pinpoint the loyal customers and keep them coming back by rewarding them. Businesses can build trust with customers via social media and convert others who may have a negative perception by providing the best service and listening to resolved issues.
Tip four – Take responsibility for any issues and problems that may arise. As with any business or anytime one has to deal with people, there is a chance that something can go awry. It is best to respond as quickly as possible and fix the issues. If the problem cannot be fixed and one has to lose a customer, leave things on a good note as Dr. Jordan Sudberg would agree.