Why Retaining Your Customers Should Be Your Biggest Goal

Why Retaining Your Customers Should Be Your Biggest Goal

  • December 3, 2020
  • Written by : Elizabeth Beall

Every business wants new customers, but is every company focused on keeping its current ones?

Debatable.

Retaining your customers is essential for businesses for many reasons, with reputation and referrals staying at the top of the list. This year, in particular, sparked an increase in the need for consumer loyalty; with the pandemic forcing businesses to adapt and change business models, searching for new customers is no longer the focus, and retaining customers has become the new norm.

If you haven’t already made retaining your customers a focal point, take a look at these mind-boggling statistics on customer loyalty according to writer Bobby Chernev of Review 42:

  • 65% of a company’s business comes from existing customers.
  • 43% of people spend more money on brands they’re loyal to.
  • A 5% increase in customer retention can lead to a 25% increase in profit.

Still not convinced? Read below to understand why how retaining customers could affect your personal business.

Reputation

Years ago, a reputation was built on word of mouth. Nowadays, your reputation is dependent on several angles: social media, review sites, online blogs, word of mouth, and not to mention, your position in a highly competitive market.

The more loyal customers you have on your side, the higher your chances of maintaining a solid reputation in the industry. Encourage this by encouraging action; ask your customers to tell their friends. Also, submit a request to be featured in a well-known source (ie. a digital magazine or news outlet), or create a customer appreciation program in which customers receive bonuses for helping your reputation.

Referrals

Referrals are the best leads and typically turn into the best customers. Friends and family trust other friends and family more than they trust a business; let them be your marketing.

From the consumer perspective, the individual is helping a friend get the product or service he or she needs. From the business side, referrals demonstrate consumer satisfaction and loyalty and bring in new customers.

Start a referral program to allow your loyal consumers to feel appreciated. Also, your potential customers feel confident in their new purchase decision and feel welcomed by the new business.

Customer Service and Reviews

Customer service means everything when your goal is to retain customers. First, it matters in regards to the experience, and second, with reviews.

As explained by Review 42, almost 90% of buyers are willing to pay more for an improved customer experience. Thus the better the experience, the better the customer feels and the higher likeliness they will spread the word.

Make the experience worth it and let the reviews do the talking.

Retaining your customers might require a few more helping hands. It is because we know with more hires, comes more names on the payroll list.

If you’ve never explored a revolving line of credit or invoice financing, now may be the time to discuss it. Our REIL Capital team of financial experts can help.

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