5 Easy Ways to Retain Customers

Ever heard the saying, “It’s harder to get in shape than it is to stay in shape?” The same is true for your business; attracting new customers is far more difficult than retaining your current ones. And for most companies, more costly.  Author and strategist Rhondalynn Korolak recommends allotting 75% of your marketing budget to retain existing clients, but states that 95% of all businesses spend the bulk of their budget chasing new clients or trying to re-engage those who have left. According to her, “Every dollar spent on direct marketing to retain existing customers is actually worth 50x the equivalent amount spent chasing new customers.” Why? Because your clients already know and understand your brand. They have developed a certain amount of loyalty, and they trust your recommendations for additional products and services. Plus, they are more likely to provide word of mouth to their peers.

Here are 5 simple tips to retain your existing client base:

1. Pick up the phone. Instead of relying on email or social media, give your customers a call to check in. Listen intently; make sure that they are happy with your product and service and find out if there is anything that needs to be resolved. Communicating with your clients directly enhances their experience with your company and nurtures your relationship.

During your call, if you do find out about an issue, work swiftly to offer an acceptable solution. Then, follow up again via phone to make sure the customer is satisfied. Be sure to uncover any additional concerns before moving on, and promise to touch base again in the near future. Follow up is the fifth step in creating a pricelessly loyal customer because, “Even if you cannot fully solve their problem, they will love that you care about them beyond the sale.” This is customer service at its best, and the return on your investment of time will be repeat business and referrals.

2. Find out more. While you’re on the phone, take a moment get to know your customers on a more personal level. Are they married? Do they have kids? What do they like to do in their spare time? Take notes and refer back to them often as you communicate with your clients. A birthday or anniversary card can go a long way in showing a customer that you care.

3. Study your clients’ spending habits. Find out what they are buying and when. You are following up to ensure satisfaction and resolving any issues that may arise. You have earned their trust by listening to their compliments and complaints, and now you can recommend products/services that would truly benefit them. What a simple way to make a sale!

4. Show your appreciation. Customer loyalty programs and client appreciation events are great opportunities to reward those loyal to your brand. Invest in bonding with clients at a ball game. It is much more fun AND more effective than spending dollars on an advertising campaign to attract new customers!

5. Utilize positive social proof. While most people are far more likely to complain when dissatisfied than they are to compliment when satisfied, numerous studies on customer motivation have shown that positive social proof (“Join the majority of your neighbors!”) is often the most effective strategy for getting people to listen. Therefore, when you have satisfied customers, don’t hesitate to ask them to make a Facebook comment, or to add their testimonial to your website.

Above all, enjoy the relationships you are building and nurturing through your retention efforts. As one of the few businesses spending the bulk of your budget on retaining current clients, you are working smarter and having more fun – all while turning a bigger profit!