Wednesday, May 29

Beating the Competition through Customer Retention

For a very long time, growth has been the emphasis of most businesses, with strategies constantly being put into force with the sole purpose of adding more new customers and widening the range of appeal.

However, businesses are now coming around to the fact that retaining customers is just as important as finding new ones, if not more so. There will come a time in a business’s lifespan when seeking new customers and growth becomes very important, but retention is what drives revenue.

It was found that money pumped into marketing excursions to gain a new customer can cost five times more than it does to retain a customer. Further, a five percent increase in customer retention can then increase profits by 25 percent and up. To get ahead of the competition, especially in such an open market where customers can almost effortlessly find alternate sources of your product or service, the focus has to be on customer retention.

Businesses have to keep customers happy and treat them with respect as an individual so that they don’t have a reason to look elsewhere. In doing so, your business then sets a standard for customers, continually increasing its retained customer base by absorbing those new customers who come to try out an interaction – thus prying them away from the competition. Here are a couple of ways to adjust the focus of your business to enhance customer retention while also encouraging new customers to join and stay.

Making sure the first point of contact is a smiling face

Source: Pixabay

Customer service roles often get a bad reputation because they, more often than not, have to deal with customers who have an issue, are disgruntled, or are being rather rude.

Dealing with negativity all day can weigh on employees, as can the rigors of everyday work life, so it’s important that your employees are content and happy in their role as a whole to ensure that any gripes don’t overflow or leave an impression on customers. One interaction with a business will leave a lasting impression, so you need to ensure that each interaction appeases customers.

The trick to enhanced customer satisfaction is through having a happier workforce. At any point of contact with the customer base, your employees need to be seen as friendly, motivated and wanting to help the customer. A strong correlation was found between happier workforces and increased customer satisfaction, and if customers are satisfied, they are far more likely to return.

Treat each customer as an individual

Source: Pixabay

With a happy workforce treating each customer as an individual and catering to their needs, they feel appreciated and respected when interacting with a business.

This sense of customer appreciation and respect also needs to be utilized in any promotions aimed at bringing in new customers. It’s a tremendous selling point that can lead to customer retention, and so, it should be subtly relayed alongside the traditional means of inviting new customers, such as advertising or email marketing. From the first interaction, which may just be looking at an advertisement, your business should relay that it recognizes the customer as an intelligent being. This method has been deployed most notably in the iGaming industry.

It’s an incredibly competitive scene, and while many outlets will advertise massive bonuses with small-print wagering requirements, others have given the nod to potential customers, recognizing that they’re smart enough to notice such terms and conditions, and instead offer welcome bonuses with no wagering requirements. Subtle moves like this are key to giving a good first impression even if it’s not directly within the business as it shows that the business knows and respects the savvy modern customer.

The system of enhancing customer retention starts from within. By bolstering the happiness of your workforce, customers will experience much more productive and enjoyable interactions with your business. That can then be relayed through your advertisements and promotions designed to add customers.

Once customers are in and trying the business, they’ll see that it’s not just in advertising that the business is customer-friendly, but in its day-to-day operation. So, they stick around, adding to your retained customer base.

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