Do You Want to Grow Your Clientele? Work on Your Retention Rate

The primary objective of a business is to attract customers, with goal of covincing them to buy products or services. However, many entrepreneurs are unaware the true success of a company is measured through its ability to retain its clientele – something as important as gaining new customers. Business owners should understand the fact that maintaining existing customers contributes more to the success of the company; acquiring new clients cost more than keeping existing ones. Unlike a business that has a large base of clientele, companies with low customer retention rate tend to struggle in developing and growing their markets.

Research has proven the significance of customer retention in the success of a business, and these studies have determined the cause-and-effect factors involving the tendencies of a company to lose or retain existing customers. While some of the data in these research may slightly differ from each other, the prevailing results show that the customer retention rate of a certain business depends wholly on the way business owners handle their services/products and their customers.

To give you some insights on how to properly manage your business, here are some academically approved tips on how to boost up your company’s customer retention rate.

Clear Communication, Effective Brand Positioning

Building a strong relationship with your clients doesn’t happen overnight – it takes the same effort as building personal relationships. It also requires acute strategies to make it happen. Creating a real and friendly connection is a great way to start if you’re aiming for loyal customers. Research says that clients most often stay in a certain brand if the company share the same goals and values. If you want people to truly understand your brand, you have to establish a clear message that will convey your purpose.
Another way to get consumers to trust your business is by having a positive social proof. According to studies, good social proofs such as testimonials are the most effective way of getting people to know your business. Use different platforms of communication to connect with your clients. Social media is today’s most convenient mode of contact, utilize it to constantly inform people about your business.

Customer Identification and Education

Studies show that the only way to truly get to your target market is to know their needs and to understand the way they think. Start by identifying your customers –their goals, aspirations, likes, and dislikes. Once you’ve established a clear perception of these, it is easier to formulate a marketing tactic that will attract their curiosity and attention. The important thing to remember here is that people should be able to relate to your message, so they’re encouraged to continue patronage of your business. Know the things that your customers love to hear, and use these to your advantage when presenting your products or services. This way, they will be willing to purchase in a constant manner.

Consumers appreciate it when you communicate with them directly, for it makes them feel important. Talking to them and informing them of your latest features and offers also add up to the good image of your business. As proven by research, customers love being informed about new products that would benefit and suit their needs and preferences. Providing helpful tips is also a great way to keep existing clients to visit and avail of your services.

Exceptional Customer Service

One of most effective ways to keep loyal customers is by providing exceptional customer service. Clients tend to continue patronage on businesses that cater good service and product quality. Being polite and responsible are some of the characteristics that people often look for in a service staff. If they feel they’re being attended to accordingly and willingly, there’s increased the chance that they’ll keep coming back. As much as possible, avoid incidents that would make your clients dissatisfied; solve problems as soon as possible, always make it a point to apologize for any inconvenience, make it up to the customer if you have to.

Customers are the most important element in a business. The growth of a company depends wholly on them, thus, it is crucial that business owners meet their standards and satisfaction. Being able to retain clients is a sign of success in the company’s part, and gaining a high customer retention rate lies upon the hands of the business owners -how they manage their services, how they treat their customers, and most importantly, how they maintain a good image.

Elsewhere on this blog:

Maximizing Customer Retention: Handling Complaints

Why Bother With Post-Sales Follow Up?

You Need These Five People to Succeed in Business