The key to business and revenue growth is not only growth in new customers but also retaining the customers you already have, too. In a research study by Bain & Company, it was found that increasing customer retention rate by 5 percent can increase profits by 25-95 percent, and when acquiring a new customer can be 5 – 7X more expensive than retaining an existing one. All of this meaning that it is absolutely imperative to invest just as much time and resources in retaining existing customers as in gaining new ones. Keep reading to learn a few helpful strategies on how to improve your customer retention and customer loyalty.
Set expectations early and often
If you choose not to set expectations and communicate these clearly, customers can easily become upset. Some clients might believe that your team can immediately deliver X results when, in reality, those results can only be seen after months of investing time and resources. A few aspects both you and your client should cover beforehand include, communicating progress towards goals, purchases, and communication styles. This is essential for making sure expectations are met and will keep customers happy with the relationship for longer.
Highlight case studies during the sales process
During the sales process, a critical portion of it should be focused on determining if your service or product is the right fit and how you will work together. Be sure to share case studies that show exactly how your service or product helped other customers and how they felt about working with your team overall. You can also share testimonials from previous customers. Sharing case studies with potential clients is similar to providing them with research before making a big buying decision. Buyers want to know if and how your services or product will work before they purchase anything. If the potential customer truly understands this, they will more than likely set proper expectations and be happier with the overall experience once they sign that dotted line.
Communicate results regularly
Customers are more likely to continuing purchasing from you if your product or services deliver results and ROI (return on investment.) If you are able to show the customer that your product or services have influenced their goals and outcomes, then it will be much more difficult for the client to churn and depart.
Ask for feedback and act on this information
If you are looking to improve customer retention, you need to first understand why your customer churn in the first place. Once you know the correlating signs and reasons, you and your team can work to prevent and reduce customer churn by proactively dealing with the issues. Asking for regular customer feedback from the entire team, including from the decision-maker, will help you to prevent customers from leaving you. This will also help you identify and address these issues early on and proactively solve problems before customers move towards your competitors.
Use reciprocity to increase loyalty
Reciprocity can be found to increase loyalty with acts of kindness, creating the feeling of obligation in the person who instinctively wants to repay the kindness. More specifically, trumpeted reciprocity. Trumpeted reciprocity is when the person providing something reveals that they are going above and beyond. This can make it evident to the customer that what you are doing and delivering is outside the normal scope of the working relationship and is above and beyond standard practices.