Many retailers believe that constantly working on gaining new customers is the key to generating profit. That is why majority of their marketing campaigns are focused on attracting new customers. However, in reality this notion is not quite true because several studies have shown that it’s the repeat customers which enable organizations to generate more revenue.
According to a Marketing Metrics’ research the chances of selling to current customers are 60 to 70 percent, whilst for new customer it’s just 5 to 20 percent. On the other hand, a report from Bain & Company revealed that if customer retention increases by 5 percent, it boosts revenue stream up by 75 percent.
According to Ruby Newell-Legner, a prominent customer service speaker and author, it is 6 times more expensive to acquire a new customer than retain an old one. Hence it is clear that it’s time for companies to keep a focus on repeat customers, if they want to increase profits and reduce costs.
Of course, acquiring new customers should also be one of the main concerns of business owners along the way, but creating lasting experiencing for existing customers, is a stronger means to generating revenue.
Following are four tips on how to retain customers and increase repeat sales through smart and effective techniques.
Providing quality customer service is a key component to convert new or potential shoppers into loyal customers. Since top-notch service makes clients feel valued and encourages them to repeat business with the company.
Retail stores can create excellent customer experiences through offering customers reliable and dependent customer service, paired with sincerity and quality communication. Customers who value your service offerings and find it superior to other companies, will always want to do business with you. Actions like these will not only increase your repeat business, but also reinforce your brand’s reputation in the market.
It is of vital importance to address the problems being faced by customers. Companies which don’t take customer complaints seriously will lose business to competitors. Several studies reveal that many dissatisfied customers don’t even complain and simply walk away. Therefore, it is essential to follow-up with customers after a purchase and see if they are facing any problems. No company can retain customers if their complaints are not resolved. According to Lee Resources if a company resolves an issue in its client’s favour, it is 70 percent more likely that they will do business with that firm.
Companies, which forget their consumers after making sales and getting them on board, should not expect to see repeat sales because once the company has forgotten them, it gives their competitors a chance to lure them in. Hence, businesses must stay in touch with their customers, without being over bearing.
Connect with your customers via social media and other means to communicate with them. Find out what they like and collect feedback on products and services being offered to them.
Focusing on your own employees is a rule which is often neglected, since focus is always laid on clients and customers and how to please them and make more sales. While this is essential for a company’s growth, managing employees and looking after them will further enhance company productivity and give you the chance to reach out to more customers.
It is quite likely that an angry or demotivated employee can annoy a customer, negatively impacting the customer’s experience resulting in dissatisfaction. If a customer has a poor experience with the company through rude or agitated staff, it is quite likely that they won’t return again.
Thus, to avoid this situation, brands need to respect and appreciate their employees, so they too do the same for their customers. Companies can make their employees more happy and satisfied by providing quality and regular customer service trainings and valuing their efforts.
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