Today’s business world is fast-paced and very competitive. Staying ahead of the competition is vital if you want your business to succeed. One of the best ways to stand out from the crowd is to excel in the area of customer service. Customer retention is also a goal worth spending time and effort developing. Keeping customers loyal works well for everyone involved; the customer can benefit from a trusting relationship and enjoy having the services of a good supplier on hand. A business benefits from regular customers, as well, because they will buy more, and less is required in the way of marketing. Many businesses focus on acquiring new customers and forget what it takes to keep existing customers happy. What it takes isn’t a lot, but it can be lost if a business has its sights set elsewhere.
5 Steps to Improve Customer Retention
Research shows a small increase in customer retention rates can make a big difference in profits. Even an increase as small as 5% can increase profits as much as 95%. Here are some tips to help you increase customer loyalty:
Communication
Your customers need to know you care about them and are listening to what they have to say. Communication is a two-way street, and it is vital that it works both ways. Customers who share your values will stick around, so make sure you convey the right message They need to feel a certain connection. Furthermore, taking the time to identify your target audience and pitching your message to them in a personal way will ensure they stay onboard.
Selling Your Service or Product
The trick is to convince customers they want your product or service, rather than telling them it is what they need. There are a number of ways you can do this, but there is a lot of power in the words you choose to use. For example, new, free and instantly have been found to be very persuasive words. If a customer feels they are getting something for nothing, they are going to enjoy their purchases more. Customers, on the whole, are very frugal with their spending. Let’s face it, we all have to be careful with each and every dollar we spend. Adding a few simple words can make a big difference. For example, a $5 fee, or a small $5 fee, which one would you be happier to pay?
Go Above and Beyond
If you are seen to be going above and beyond what is normally expected, you’ll be rewarded with plenty of repeat business. Believe it or not, it doesn’t have to cost hundreds of dollars. Something as simple as walking a customer to their car and helping with a bulky purchase will be rewarded. Asking customers whether there is anything you can help them with as soon as they enter the store can also be beneficial. Such small gestures are worth their weight in gold. It’s the little touches that make such a big difference because personal service is something else that gets a customers attention. A study was undertaken for the Journal of Applied Social Psychology. It related to waiters giving an extra mint to customers at the end of a meal. Amazingly, this small personal gesture increased the number of tips by 23%.
Customer Support
If you aren’t prepared to invest in customer service, then you might as well close your business today. Good customer service is one of the most important experiences your customers should be enjoying. It’s not all about the speed of the support either. A study conducted by the Gallup Group has shown that being helpful, willing and courteous is more likely to engage customers with a brand than speed. Do you encourage your employees to serve a customer and move on to the next one as quickly as possible? This is counterproductive. Customers don’t like it when they feel rushed or are ignored. Think about how your customers would like to use the support service. Will email communication be sufficient or is it necessary to provide a more direct form of communication. Pick the best channel for your type of business and customer base. If you have a number of employees that will be providing customer support, ensure everyone has access to the relevant information. It’s vital that all support staff know what is going on with a customers account. There is nothing more annoying for the customer than being transferred from one person to another because important information has not been shared. It will also save your business time.
Loyalty Programs
Reward your customers for their continued support; you can do this in a number of different ways. One popular method is using challenge coins, and you can learn more here. Creating a loyalty program is another option. However, you should understand why people use them, and how they can be persuaded to keep using them. One important aspect is that they should receive their reward straight away. It doesn’t have to be much, but a loyalty program works better if customers don’t have to wait too long. Another way is to create a feeling that the program is somehow special. VIP or Gold Membership has been proven to work, as long as there is a class below them.
These are the five best ways to increase customer loyalty and keep them coming back for more. The modern business world is very competitive, and you have to work hard to stay ahead of the competition. However, the steps that have been mentioned above can quickly become second nature for you and your employees. Customers who are loyal will benefit you in a big way, becoming the core of your business. There are so many businesses that fail because they didn’t spend time nurturing their customers. Having the best product or service makes no difference if you don’t invest in your customer service. It’s more than just putting on a smile and wishing them a nice day. It involves treating them as they want to be treated and making them feel special.
