This is default featured slide 1 title
This is default featured slide 2 title
This is default featured slide 4 title
This is default featured slide 5 title

The Importance of Retaining Customers

Retaining customers creates business value, as well as their satisfaction and loyalty. Finding and attracting new customers, however, is both expensive and time consuming. A constant turnover of offsets the revenue of new ones and hinders a business from growing. Loyal consumers have a tendency to buy more, buy more frequently, and are the best word-of-mouth advertising for a small business – service, retail, or manufacturing. Loyal consumers drive growth, while losing buyers reduces revenue and increases expenses.

The flip side of retaining buyers is determining why established ones left, and then taking corrective action so the situation is not repeated. Did clients leave due to bad service, inferior products, or no connection to the business? A survey of lost clients is important feedback in determining what changes a business can make to retain customers.

Some general approaches small businesses use to develop cunsumer loyalty and retention are:

Money back guarantees – If a company is confidant of its products and services, then offering a money back guarantee is not a risky proposition but can enhance sales by giving clients the confidence that a company stands behind what it sells. Returning someone’s money and retaining a buyer is far less costly than keeping someone’s money and losing a purchaser… not to mention the bad word-of-mouth that can result from a disgruntled consumer.

Training – All employees should be trained on how to build value into clients relationships. The best ones are those who feel a connection with a business, its owners, and employees. Relationship selling increases revenues and produces long-term clients.

Establish excellence – Any company can be mediocre, but a company that prides itself on producing excellent products and services stands out from the crowd. Businesses should determine how to judge the excellence of what they deliver to users.

Customer service – When a company understands the importance of client service and stresses this first and foremost, then sales become a natural by-product. Stressing sales first and hoping client service falls into place typically will never happen. Creating a customer service culture produces countless benefits.

Transformation – Mistakes will always happen when consumers are involved. Businesses should view mistakes as learning opportunities to transform dissatisfied buyers into satisfied ones.

Loyalty programs – Loyal clients love to feel appreciated. Overall, loyalty programs cost very little, but produce great benefits. Successful businesses know what buyers want and create loyalty programs designed to further promote their business-customer relationship.