Do you think obtaining new customers is cost efficient than retaining loyal customers? It is a common fact that it costs 6-7 times more to the company to acquire a new customer than retaining an existing customer. I do not mean that you need not put efforts to make new customers, but just do not ignore or forget your existing customers in the process of converting leads into sales. Yes, making new customers is not a cake walk, but retaining your loyal customers is no less than a challenge.
Your new and existing customers both have their own values in the business. New customers bring in immediate business and your loyal customers are like Cash Cows i.e. they carryout regular business. New customer’s order shows, future growth and loyal customers act as a strong foundation for future growth, which the company has built in the long run with its hard work and services.
What is customer retention?
Customer retention refers to the ability of the company to engage its customers to continue buying their products and services in the long run. Building a good relationship with your existing customers is your responsibility and duty. If your customers are satisfied with your product and service, they will not just come back to you but they will also market your brand much better than you.
Read our blog – Retain your loyal customers
Loyal customers are a boon!!
- Loyal customer banks shows customer satisfaction with your services & products
- They make a strong impact on the company’s growth and brand image of the company.
- Loyal customers also ensure increase in the proportion of sales of the company.
- It also reduces the marketing cost of the company because the word of mouth plays a vital role rather than ads and social media posts.
- Your loyal customers provide the best feedback which helps you to improve your business and understand the actual requirements of your customers.
- The loyal customers become one of the reasons behind increasing the revenue of your company.
- Makes the company profile powerful and secure which in succession attracts more orders, opportunities, leads, investors and also brings ease in many ways.
- Your loyal customers give you an overall idea about the target customers.
To run a business successfully in the long-run, loyal customers play a very important role. Your existing customers can be very supportive as well as informative about market. You can trust their feedback and they can extend their support to improve your products and services. Loyal Customers play a strong role in new product development and their success.
Day by day world is becoming smaller with the use of technology. Every business is becoming customer centric business by being more transparent and it’s easier to interact through one-on-one interaction. Referral verifications and recommendation has become easy tools for customer to get know about the company. It’s more like mouth-to mouth publicity in which customers perform key functionality. Many marketing tools like Facebook, Linkedin, marketing services & e-commerce sites are using recommendation process as a strong tool to market your products. List of strong and stable clientele says a lot about your company’s working & profile.
How to make customers loyal?
No matter if you are a small business or a larger one. You can make your customer loyal by following few basic practices.
- Communication with your customers is important as they are the ultimate challenges because knowing your customer’s needs and expectations can help you to grow quicker.
- Give special concern and interest to your all time loyal customers. They would love to receive the extra concern.
- Customer service is one of the most essential aspects that your consumers look forward for. It is said in a survey that for about 71% of the customers tend to shift for different products because of the poor customer service they experience.
- Use technologies which can not only make your work easier but also make your customers feel valued and respected.
- Be thankful to your loyal customers because they choose to stick on to your brand if you are not the only one in the market.
- Give them opt reasons to be a loyal customer and they will become a sacred customer of your brand. So, it’s in your hands to make or break your brand by retaining your loyal customers and improving customer loyalty every time they purchase.
Today in every Industry there is need of having two indispensable tools to maintain their customer bank- an excellent Customer Management & another customer services. Without a proper Customer management and service, no business can survive. At the end it can be summed up with the saying, “OLD is Gold” which doesn’t seem to be losing its meaning, rather is becoming more powerful in the present Digital Era.