How to Retain Existing Customers and why it is so important
How to Retain Existing Customers and why it is so important
Customers form an integral part of any business. This means that without customers, there is no business that can take place. When customers are appreciated, they feel that they are part of the company, which can be a positive thing for a business. Your old customers have a huge impact on whether you will get new clients or whether you will lose both the new and the existing ones, and for this reason, customer retention is important. There are several ways through which you can retain existing customers, some of which include the following.
- Offer Great Customer Service
This is one of the ways through which you can retain your existing customers. Most of the time, after clients have purchased a product or service, and they are experiencing any difficulties or faults with the product or service, the first place that they call is the customer service of the company they were in business with. Good and efficient customer service makes clients feel like they are valued and put first by the company. For this reason, customers will feel safe with a particular company since they know that all their questions and concerns will be addressed.
- Give Discounts
Every business has the aim of making profits and achieving its target at the end of the day. However, this does not mean that when you give customers discounts once in a while, the business will go bankrupt. Since these customers are the same people who give you the profits that you value, it is fair to give them discounts on specific products once in a while. This motivates customers to keep being in business with you since both of you benefit at the end of the day.
- Get in Touch with Customers
Communication is an effective tool that enhances a good relationship between customers and a company. In addition to that, getting in touch with customers also helps in building trust between the two parties. When a client communicates to a business, and they do not respond, the client will feel as though the business does not value its clients, and for this reason, he or she may withdraw from being in business with this specific company. However, if a client messages a company or sends an email and gets feedback immediately or after a few hours, he or she will feel valued, and this builds trust between the client and the company. For this reason, the client will feel safe in this company and will stay for as long as possible.
- Thanks and Appreciate Customers
Showing appreciation towards customers shows that you do not take them for granted. Business owners who appreciate their customers on a regular basis usually get to retain their customers and attract new clients. One of the ways that you can use to appreciate customers is giving them gift vouchers on certain occasions. For instance, you can give gif vouchers to clients who participate in the programs that your company offers. They can use these vouchers to shop for anything they want, as long as they do not pass their limit unless they are topping up the amount in cash. Client appreciation makes clients feel part of the company and encourages them to keep being in business with you. This, in turn, is a huge advantage to the business in that the business will be able to make profits and retain its old customers.
Importance of Customer Retention
Although many people may not know it, customer retention is important in several ways. Some of the importance of retaining customers include the following.
- Attracts New Clients
One of the ways that new clients can get to decide whether to be in partnership with a business or not is to check their customers. A company that keeps losing its old customers should be a red flag, and before getting in contact with this company, it is important that a customer determines the main reason why old customers keep leaving. If you know of someone in person, then it makes the whole process much easier in that they can tell you why they stopped being in business with that particular company. Therefore, if the company is putting the interest of its customers first, then you should invest in such a company. This means that the company will still have its old customers and new ones too.
- Increase in Sales
A company that retains its old customers tend to make more profits at the end of the day. This is because these customers keep coming back for more from the same company since they have built a good relationship with that particular company.
- Improves Brand Image
If a new client wants to get in business with a specific company, checking the reviews that have been left by other clients is one of the ways through which the client can gauge the company. Since not everyone will feel the same about a given brand, it is important that you consider a company with more positive reviews than negative ones. Positive reviews give you a positive impression about a given company and increase the chances of a customer investing in that particular company.
- Builds Good Relationships
Lastly, retaining old customers helps in building a good relationship with the customers. This is when you find customers reaching directly to the company in case they need goods in bulk. In addition to that, if the client hears of someone looking for products or services that his company deals with, then he can refer the other person to the client. This only happens if a company is in a good relationship with the clients.
In summary, customer retention is important in that it boosts sales, increases good relationships, and attracts new clients to the company. All this is possible if there is good and effective communication between the company and its clients and if both parties are dealing based on trust. Therefore, retaining old customers is an advantage to any business since it also improves the image of the brand.