How To Retain Your Customers
How To Retain Your Customers
How To Retain Your Customers
Businesses usually focus on gaining an additional number of customers but often fail to care for their
existing customers well enough. It is important to know that customer retention is as good as
customer acquisition. Your competitors will never stop growing and customers are spoilt for a
choice. Customer retention is a great exercise in promoting brand loyalty and it is also cost-effective.
This is a strategy that pays off in the long run and its effect on profits and loss is huge. Most
customer retention strategies don’t cost much and are easy to implement.
Here are a few customer retention strategies that can significantly impact your business when
executed.
A good business tool is a valuable resource to retain your customers. A software/app that
helps you measure your performance and customer behaviour is invaluable. Such apps can
help you understand your consumer’s preferences. For example, with Biz Analyst, you can
Be prepared before visiting your customer and keep yourself updated with Items they have
purchased in the past, at what rate, what items you have in stock, etc. so that you can not
only get more business from the customer but you will also end up making the right
commitment based on the stock in hand. Alternatively, you can impress your customers by
your quick response. You can also analyse & focus on goods and services that perform well
and device strategies to promote them further to increase profits.
Metrics to track
Customer retention metrics help you improve your customer retention rate.
One-time purchase vs Repeat Orders: Analyse the % of customers who are one-time buyers and
those who have ordered multiple times. It is important to know how many repeat purchasers you
have and why some remain one-time buyers. Calculating your repeat purchase rate can help you
evaluate how well your retention strategies are working.
Frequency of Order: The purchase frequency shows you how often customers purchase. These
repeat buyers account for a good portion of your business revenue. Tracking this will help you
understand their buying pattern and behaviour.
Your existing customer base is one of the most valuable assets your brand can have. Your regular
customers already know your brand and if they appreciate you, it’s vital to focus on refining the
experience for them rather than finding new customers. This can be a game-changer for SMEs that
seek to increase their revenue and establish themselves as market leaders.