How to keep your existing customers while growing your business.
When starting a new business a main focus is generating revenue by acquiring new clients. So entrepreneurs do everything in their power to generate awareness, create a new website, print flyers, attend social events and let the public know they’re open for business. But what happens when business is finally booming and you have a full book of clients? This is when the real challenge begins.
Why Client Retention Matters
By now you’ve probably heard that keeping an existing client is a lot cheaper than acquiring a new one. In fact, 70% of companies say it’s cheaper to retain a customer than acquire one, while others have suggested that the cost of acquiring a new customer can be as much as seven times more expensive. In addition, keeping customers is faster, it better positions your company for growth and it’ll help you gain new clients through word of mouth. Here’s how you can do it:
Start from the beginning
A powerful and thorough customer onboarding process will set the tone for the rest of your relationship. Whether you’re a B2B or B2C company, a good idea is to always have a predetermined set of steps for your sales representatives to follow when someone converts into a customer.
A strong relationship with your customers will only come from continuous communication, listening to their concerns and receiving and implementing feedback in a timely manner. At the end of the day customers want to be heard, feel valued, and know that they’re not only paying for a product or service, but they’re also receiving the support that comes with it.
Spend money on marketing
We often see small companies overlook the power of marketing due to high costs and lack of resources. When deciding where to allocate your budget to, however, marketing will be just as important as salespeople.
Through social media, monthly newsletters, educational blogs and media outreach strategies not only will you stay top of mind, but it will also give your customers the reassurance that you’re here for them.
We mention feedback above but it’s too important not to bring up again. When customers give you feedback about your product, your employees, or your processes, there’s only one thing to do: listen. Customers who are heard and valued are more likely to stay and more likely to refer you to others.
Having a family of clients is not a right, but a privilege, and you should be thankful for the opportunity. Every chance you get, make sure to recognize how valuable they are to you. If you’re not sure where to start, consider holiday gifts, customer appreciation events, customer advisory boards, or simple “Thank you” emails. Gratitude goes a long way!
Have you implemented a successful customer loyalty program? We’d love to hear about it. Leave us a comment below for the chance to be featured in one of our entrepreneur interviews.