Customer retention is the percentage of customer relationships that your business can hang on to in the longer term. Acquiring new customers is 5 to 7 times more expensive than maintaining existing customers. However many businesses burn cash as a part of their operation in getting more new customers. As acquisition costs increase, companies need to innovate by taking a proactive role in customer loyalty. retaining customers means keeping customers happy, making them feel important, thinking and communicating with them on a regular basis and encouraging them to come back for more.
By making retention part of the whole sales process will by the very nature of the actions will increase retention.
Simple things matter and it’s not just the follow up it’s the following through that counts here. Follow up gains you the business, following through retains the business and subsequently the customer.
- Things that can help retention
- Satisfaction call, is everything okay
- The opportunity to give a review
- A thank you gift if appropriate
- CRM system
Customer retention is really important to a growing business as the data and customer feedback help to improve service delivery and quality. The result of having a job well done is a win for both the customer and the company.