Retain more Customers (and up to 95% more profit)
New clients are shiny objects for businesses. Beautiful, often distracting, and not always as lucrative as we often think. But why chase after new clients when we can nurture our existing customers?
The numbers don’t lie!
It costs ~5X times more to acquire new customers than to keep an existing customer! And a 5% increase in customer retention can equal a HUGE 25-95% increase in profits!
We sat down and recorded a podcast on this subject: How to Retain more Customers. This episode is part four of our five part mini-series on the Customer Journey! Check out the video, listen, or read our written summary below.
What is a Retention Strategy?
Our job as business owners is to strategically manipulate and enhance the Customer Journey to ensure we anticipate and foster the needs of our clients. By developing a Retention Strategy, we prioritize policies and processes that allow our company to continue developing relationships with existing customers.
This strategy will look different for each business but the principle remains the same: anticipate the needs of your customers, add value, and provide an excellent post-purchase experience.
Ways to Retain more Clients & Customers
Communicate
After your customers purchase, ensure you continue to communicate with them. Send simple handwritten notes, an automatic email inviting their feedback, or add them to your newsletter (with permission of course). Give them a reason to re-engage with you and your brand, in a manner that makes sense for your business and operation.
Add Value to their Lives
Remember, acquiring a new customer costs 5X more than retaining one! But that doesn’t mean you should underinvest in existing clients. Add value to their lives so they remain engaged (and refer you)!
From offering them “insider” discounts to subscriptions to sharing value-added content, prioritize meaningful actions that invite your customers back into your brand.
Loyalty & VIP Programs
Loyalty & VIP programs are great ways to continue engaging with your brand. There are different loyalty type of loyalty programs that may be right for your business:
Point Programs
Spend-Based
Tiered Programs
Paid Programs (like a VIP member club)
Final Reminder
No matter your business, you should have a Retention Strategy that helps your company nurture existing relationships and maximize profits. Here’s our quick tip reminders:
Add value to your audience
Prioritize existing customers, where possible
Keep it simple and impactful