Every business owner knows that employee retention is incredibly important, as it costs much less to invest in keeping your best employees then constantly having to hire and train up new ones. The same can be said for customers. Getting existing customers to continue to buy from you is a lot cheaper than acquiring new ones. So, it makes sense for businesses to focus their time on their customers (as well as their employees as well), as this will help them become successful.
The difference between a successful business and an underperforming one, often lies with the way that they treat their customers. It’s really important that businesses invest time and money into creating loyal customers, otherwise you’ll just end up wasting a lot more money then you planned. Loyal customers don’t just spend money with your business, but they can also be used as a brand ambassador who directs new business your way. This is just a small reason to why you should focus more on the customers. Keep on reading to find out more.
Customer Retention Gets More Money
One of the biggest myths about making more money for your business, is that you need to invest more in customer acquisition. But this is a myth and people would be wrong to believe it. The quickest and most effective way to increase revenue is through customer retention. The reason for this, is simply because it is cheaper. It’s five times more expensive to gain new customers than it is to keep your old customers.
This is simple because when you are selling to your existing customers, you are selling to someone who you have already established a relationship with. They trust you, they like purchasing from you, they like your business. You don’t have this relationship with a brand-new customer. But another bonus, is that these loyal customers, will actually help promote your business, intentionally or not. If you have provided them with a good service, they will likely tell their friends and family, who will then check you out, without you having to do anything.
Customers Grow to Become Advocates of Your Brand
When it comes to your customers you need to make sure that you deliver an amazing experience. The customer always comes first, so it’s important that you find a way to give them the experience that they want. Thanks to technology it’s a lot easier to manage this though, you can become a successful customer centric business, without worrying too much. The good thing about this is that it means that you can keep your customers happy. The more customers who like your business, the more likely they are going to share a positive review for you.
When you deliver a great customer experience, they grow to become advocates of your brand, and will go all in to recommend your products and services to their friends and family. Even to people who they might only know briefly. Either way, this is a truly costless marketing edge, and you’ll easily be able to get more revenue and some new customers thanks to it. So, make sure you take proper care of your customers, and make sure to create a connection with them. This will help you in the long run.
New Customer Gain
As briefly mentioned, you might find that perfecting your customer experience means that you can gain some new customers, without having to spend a fortune on marketing. Customer acquisition is a lot more expensive then customer retention. You’ve already established a relationship with a customer, so it’s easier to get them to come back and use your business again.
Obviously, you need to make sure that your customers are happy every time they work with you. When they are happy and satisfied, they will refer more people, which means that your customer base will grow. Naturally, this will also mean that your revenue, sales, impact, and business value will also grow as well. So, it’s a win-win. Don’t forget though, it’s not just your customers who you need to focus on, there are other aspects of your business that you need to look after, for example, are your business finances in order? If not, then you really need to sort it.