A new year means new beginnings and businesses tend to get gung ho about gaining new clients, sometimes forgetting about the importance of keeping the customers they already have. Don’t make the mistake of focusing all of your attention on acquisition when you should be centering on customer retention.
What is customer retention and why is it important?
Customer retention is the ability a business has to retain, or keep, its customers, turning them into repeat buyers and loyal followers of the company.
People form trusting relationships with the businesses they’ve already bought from thereby making it 60-70% more likely to make a sale with an established client rather than someone you’ve never worked with.
Customer Acquisition vs Customer Retention
The proof is in the coin purse when it comes to customer acquisition and customer retention:
- It costs 5x less to retain an existing customer than it does to target a new one.
- The average, loyal customer spends 67% more in their 31st to 36th month with a brand than in their first six months of the relationship.
- Increasing customer retention by just 5% can increase profits from 25-95%!
- 44% of millennials say they are loyal to their favorite brands.
- Existing customers are 50% more likely to try your business’s new product.
Effective Strategies to Keep Your Clients Coming Back
1. Deliver quick and stellar customer service and support.
2. Be professional yet personable and develop relationships through newsletters & socials.
3. Listen to your customer’s needs, gather feedback, and give them what they’re asking for.
4. Start a loyalty program, offering incentives, discounts, and specials for members only.
5. Constantly take notes and work on improving your customer’s experience.
Have questions about customer retention? Reach out to Green Bag Designs for a 2020 Marketing Strategy Session today! We’ve got all your marketing needs IN THE BAG!