Customer retention is a key feature of any healthy business. Any business can get a first-time customer, but getting those customers to return means you must be doing something right. If you can build customer loyalty and keep it going, that can lead to long-term success. Here are seven tips to boost customer retention.
1. Reward Repeat Business
Customers are likely to return if they have an incentive. Great products or services might be enough for some people to keep coming back, but rewarding repeat business can help persuade others. This may come in the form of a discount on the next purchase or a loyalty program that offers a discount or other prize once a certain purchase amount or number of visits is reached. If a customer knows there is something in it for them, they might be enticed to return.
2. Be As Responsive As Possible
Try to be as responsive as possible if customers or prospective customers have questions. This is especially important online. For example, if you have a Facebook Page, be ready to answer messages from potential customers seeking information.
"Since you can read users' posts in real time, users will demand that you also respond in real time," says Swetha Amaresan, a senior marketing coordinator at Nickelodeon.* "That means, there's no longer time for crisis communications and public relations teams to meet up, discuss options, and cultivate a well-worded response to related issues. You have to think on the spot and use your gut to respond as soon as possible or risk users coming to their own negative conclusions."
3. Find Out if You're Treating Your Customers Right...Ask Them
There's possibly no better way to find out what your customers think than simply asking them. You don't have to in person, but you can give them a short questionnaire or comment card to leave feedback. Or follow up online. Ask what they liked and didn't like about their experience. Ask your customers if they were treated well.
4. Don't Be Too Complicated
Simplicity is generally appreciated by customers. Nobody wants their purchase experience to be complicated, and that goes for the sales pitch and other materials that are designed to get people to buy.
"It is easy to assume that having the best product on the market automatically assures dominance, but this is not necessarily true," says Forbes.** "A rival company may outsell your business with an inferior product because customers find their explanations and marketing materials easier to understand. Ultimately, the more accessible you make the nature of your business, the faster they can decide if they want to shop with you. A convoluted, over-explanation may drive shoppers away, while those who know precisely that your business serves their needs will feel more comfortable buying from you again and again."
5. Make Sure Your Employees Are Properly Equipped
Employees need to have everything at their disposal to keep customers happy and maintain relationships, whether it's CRM software, clear policies, and/or a deep knowledge of the company and its products or services. They should be able to answer most questions customers have and encourage repeat business.
6. Make Sure They're Also Well-Trained
Employees also need adequate training in the customer service department. Ensure that they know not only company policies and the ins and outs of products and services, but also the strategies they need to ensure customers are completely satisfied with their experiences.
7. Give Them the Ability to Help
Finally, employees need to have the power and authority to be able to help customers on their own without having to turn to you or another higher-up every time an issue arises. If they have the customer wait while they talk to you and help solve the problem, you're already on the wrong foot with the customer because that means more waiting, and this is one of the biggest turnoffs a customer can have. If employees are well trained and have the tools they need, they should be able to act on what they've learned and what they're equipped to do.
Customer retention is vital for a small business. Make sure customers are treated well and that they have a reason to come back. If you can achieve these things, your business should benefit significantly.
* https://blog.hubspot.com/service/social-media-response-time
** https://www.forbes.com/advisor/business/customer-retention-strategies
