There’s no denying that customer retention is good for business. Keeping your current customers satisfied costs little in time and effort but produces a great reward. In fact, repeat customers contribute nearly half the revenue of the typical small business. If your customer retention strategy could use some work, read the tips below to start improving right away.
Listen and Then Act Upon Customer Feedback
When people are unhappy with a company’s service, they often leave without the company ever finding out why. This is something your small business can avoid by requesting and then carefully considering feedback. For example, a new small business owner may be happy with your services overall but would prefer additional options to meet his or her smaller budget and needs. When you listen and introduce such options, the customer is likely to stick around and invest more heavily in your products and services as his or her own business grows.
Thanking customers for their business when they provide positive feedback and responding in a non-defensive way when their feedback is neutral or negative makes all the difference. A customer who was about to write your company off due to a disappointing product or experience may just be willing to give it another shot based on the way it responds to criticism.
Consider Introducing a Rewards Program
Did you know that customers who enroll in a rewards program spend up to 20 percent more than other customers? While this is certainly a benefit, the real purpose of a rewards program is to thank people for their loyalty to your company with special discounts, free items, and offering engaging content to keep your business in the forefront of their mind.
Have a Convenient Return Policy
People are far less likely to purchase an item if they fear getting stuck with it if it doesn’t fit or otherwise work for them. While that doesn’t mean you have to accept used items for return a year later, designing a clear and generous return policy can affect customer loyalty more than you might realize.
Need more customer retention strategies? Schedule an appointment with a business consultant at Purevue Capital today.