A Business’s Guide to Customer Retention and Loyalty

HOW YOUR BUSINESS CAN RETAIN CUSTOMER SATISFACTION

by Contributor

Image: geralt, Pixabay, License

(Jan. 24, 2020) — Every business owner knows that customer retention is crucial to the success of a business. Here’s how you can increase the loyalty of your customers.

As a business owner, the last thing you want is to have unhappy customers. It will cost you potential income if buyers don’t keep coming back for your product. It will cost you more to attract new customers. Statistics show that it will cost you 5x more to get a new customer than to retain those you already have.

Not only will you lose income, but you’ll run the risk of destroying your reputation as well. The fate of your business is in your customer’s hands. Especially with the advent of technology and online shopping, a customer can either make or break your product.

One bad review can cost you potential customers and destroy your online image. The Harvard Business Review found that 48% of customers who had bad experiences with a company told at least 10 people about it. And if word goes out that you’re not providing quality products or services, your reputation will take the hit.

Any business owner would know that customer satisfaction and loyalty are important. Loyal customers are worth 10x more than they were when they first made a purchase. One of the most effective ways to increase a company’s bottom line is to maintain customer retention. Here’s how you can do that.

Take advantage of social media

With the advent of social media, it has become easier to build relationships with your customers. You want people to trust you enough to be confident in making a purchase. And once you do, you have to maintain that trust.

Social media gives businesses the platform to communicate and interact with their potential customers. Utilize social media sites to start conversations with people. Simply liking a post your brand is tagged in will work wonders in building your relationship with customers. Not only that, but you also have the benefit of being able to market your business.

Address your customers’ concerns

We’ve established that a customer’s experience can either make or break your business. With that, it’s essential to keep customers happy. But the reality is that you can’t ensure a pleasant experience for your customers at all times.

It’s a very subjective matter, and there are things you can’t control – like a delay in shipment due to inclement weather, or mishandling by a third-party distributor. But what you can do is to have an avenue where you can address your customers’ concerns. There are numerous high-performing Australian BPOs in the Philippines who can assist you in improving your customer care services.

It’s not too late to transform a bad experience into a good one. Studies show that 70% of customers who had negative experiences were still transformed into loyal customers after companies provide quality service in fixing the problem.

Ask for feedback

Today, customers put a lot of value in forming a relationship with the company. They’re no longer after one-time deals wherein the transaction ends after their purchase. Customers appreciate being approached and asked for feedback.

With this, businesses have to go and make the extra effort of reaching out to their customers even after a transaction. By simply asking how happy they are with the product or service you provided, you’re taking your relationship with the customer to the next level.

Further, asking for feedback will help give you some insight into how you can innovate and improve your product or service. Ask your customers how you can serve them better, and take their responses seriously.

Customer retention is important for every business. If you keep a customer loyal to your product and your company, you’ll see a tremendous and positive impact on your bottom line.

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