How do you increase your customer retention rate?
Customer retention is one of the most important pieces to your businesses success. Unfortunately, it is also a funnel that is overlooked. As business owners, we get so focused on the acquisition of new customers that retention becomes neglected.
Neglecting your customer retention rate can be the kiss of death to your business.
Did you know that it costs your business 7x more to gain a new customer than to keep an existing one?
Why is this?...simple...MARKETING costs a lot both in time and money.
Not to mention, marketing companies are usually solely focused on the acquisition funnel. I am by no means stating acquisition shouldn’t be a part of your marketing strategy. What I am simply stating is that you need to pay attention to your retention rates.
It’s your loyal (repeat) customers who keep your lights on, tell friends and family, and make you successful.
So what simple actions can you take to reduce customer retention and save money.
Provide the best value
Provide the best customer service
Capture service satisfaction scores - make this process easy
Make communication with your business easy
Listen to your customers
Respond in a timely manner to communications and/or any negative reviews
Do what you say you are going to
Finally, be honest
The vast majority of these actions take little to no money but there are tools available to automate/streamline some of these processes.
The bottom line is it is time for you to look at your customer base to understand your retention rate.
“Heed the Bubble”