3 Customer Retention Practices any Business Can Employ
Customer retention is very important for small businesses, because just like for large corporations, holding on to the customers you already have, costs significantly less than acquiring new ones. Not only does keeping your current current customers build loyalty and trust, those desirable qualities can also lead to more frequent purchases and a higher dollar amount spent on purchases. Here’s how any business can improve its customer retention practices.
Offer discounts and promotions
You may already have identified potential customers who have shown some kind of interest in your products in the past, but who have not yet made a purchase from you. These people are ideal to offer some kind of promotion or discount to, because they have been sitting on the fence, and they just need some kind of incentive to have them climb down on your side of the fence.
If you have a good CRM system, you’ll have contact information on your customers, and you should use this to actually make contact with them to show that you personally care. Most people are flattered to be personally contacted, and by you reaching out to them, it shows that your company has a human face attached to it, rather than being a cold, uncaring building somewhere. Try to learn about customers’ pain points, needs, and desires, and show how your products will address one or more of those.
Reward your best customers
Using sales information from your customer database, identify which customers make the most frequent purchases and the most expensive ones. These customers should be rewarded with whatever kind of incentives you can make available to them. This not only shows your appreciation for their past buying practices, but it will encourage them to continue to be your most profitable customers.
We can help your business with customer retention
At 5 Star Funding Group, we recognize that it costs a small business much more money to acquire new customers than it does to retain existing customers, so we’re always willing to help finance your customer retention strategies. Contact us to find out how we can help your small business retain customers, and expand your customer base.