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How To Retain Your Customers

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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.

What is customer retention? Why do you need it?

Customer retention is activities or measures taken by an organization to increase the number of


repeat customers. Customer retention strategies let you both offer value-added services to your
existing customer base. Your hard-earned customers will stay with you only if they have great
customer experience and derive benefits from your services or products. Good customer retention is
a safeguard against customer poaching by the competitors, it nets you better profit and eventually
more customers.

How to retain customers:

Here are a few customer retention strategies that can significantly impact your business when
executed.

 Focus on interaction, customer care, and feedback


Never underestimate the value of good customer care services. Since the advent of the
digital revolution, communicating with your clients has also become easier. Your customers
will need help and their buying behaviour will depend on how they are treated. Make your
business an accommodating and approachable entity in the eyes of your customers. It is
important to show your customers that you care, so fixing problems a customer faces should
be your top priority. This will also help in evaluating your performance from their point of
view. Email marketing, social media, enticing offers are also a great way interact with the
customer & get feedback.

 Cultivate brand loyalty


Brand loyalty largely depends on the quality of your product/service. But many external
factors influence brand loyalty. A good brand loyalty program will motivate your customers
to buy more to earn rewards. This is a profitable exchange for both you and your customer.
Brand loyalty also rests reputation, especially during troubled times. Transparency and
honesty go a long way, it’s better to own up to your mistakes and apologize for it. This
displays authenticity and shows the customers that you are ready to improve.

 Use the right business tool

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.

 Always remember the customer is the king


Your customer retention strategies aid you in forming long-lasting associations with
consumers. Word of mouth is as powerful as it is said to be.

Some other ways to increase customer retention:


 Improve your response time Maintain regular communication
 Communicate Professionally
 Understand your customer’s need
 Be Transparent & Honest
 Thank your Customers at the right time
 Use digital marketing trends and tools well

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.

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