6 Ways to Retain Customers

Sitting at home on Sunday, browsing the newspaper, one offer in particular caught my attention. $10 off haircut and style – new clients only. I had been to this particular salon in the past, so I wasn’t the new type of client they were looking for, and I couldn’t help feeling unappreciated. As a marketer, I also wondered if they knew customer retention is cheaper than new customer acquisition.

Studies have pinned the cost of acquiring a new customer at five to 30 times that of keeping current customers happy and engaged. The cost of new customer acquisition varies by industry, but in any case, it’s in the best interest of a business to keep current customers coming back. Here are six tips for customer retention:

1.    Deliver consistently on your promises. Business promises come in many forms, including not just specific product or service deliverables, but also consistent business hours and customer experience.

2.    Don’t get too comfortable. It’s easy to get comfortable and complacent with long-term customers, mistakenly thinking a missed deadline or less-than-stellar experience will be overlooked. It won’t go unnoticed.

3.    Invest in your customers’ happiness. Whether you’re selling advice or hardware, be committed to your customers’ success and happiness. When a customer feels cared for – as in, I care more that your sink is leaking than how much you’re going to spend to fix it – they will be back.

4.    Listen! We’ve all heard that feedback is a gift. If you’re lucky enough for a customer to express their concern, rather than simply walking away, take advantage of the opportunity to make things right.

5.    Invest in your employees. Often, relationships are formed between customers and individual employees. When a key employee leaves, there is serious risk that customers will leave as well. Invest in your employees and reduce turn-over to maintain a consistent customer experience.

6.    Appreciate your current customers! It’s fine to create an offer to draw new customers in, but don’t leave current customers feeling left out and unappreciated. If they can’t take advantage of your weekly deal, they may go someplace new – where they can use the coupon too.

It can be exciting to sign a new deal or kick off a shiny new project. Just remember to appreciate and care for your current customers while welcoming new ones.