From the Blog
Why Customer Retention Matters As Much (Or More) Than Attracting New Ones
So you’ve got the attention of your customer. That’s great! Now the real work begins: retaining that customer’s interest in your service over weeks, months, and years.
Working to keep customers you already have actually makes more financial sense than appealing to potentials. That’s because existing customers are already aware of your service, are less likely to engage the services of a competitor, and are more likely to spend money on your service over time. Bain & Co., a global management consultancy firm, reports that a 5% increase in customer retention can raise your company’s profitability by a whopping 75%. As these numbers readily attest, finding ways to engage your audience is vital.
Running promotions that are relevant to your customer base is a great way to keep engagement going. Reward current customers for continued brand interaction; loyalty programs are a great way for encouraging repeat business. Promotional efforts can extend to personalized correspondences, like birthday and holiday cards, which combine rewards with a sense of warmth and appreciation for the continued support. Listening to customer feedback is also a crucial part of retaining engagement. “(Customers) are on the front lines. Keep an ear to the ground and implement their suggestions,” said Chris Duskin, vice president of marketing at Extole, a referral marketing company. “There’s no better feeling for a superfan than to see change they pushed for.” The bottom line: hold onto the customers you have, because it will pay off for you in the long run.