Here’s an interesting stat – Marketing and selling generally achieves a 5% to 20% hit rate when targeting new clients while selling to an existing customers achieves a 60% to 70% success rate. In addition to this it is more expensive to market to new clients than to existing ones.
Based on these numbers it’s a no brainer that protecting your client base should be at the forefront of daily business activity. How do you retain your clients and grow this business organically?
There are a number of strategies that one can look at:
- Be personal – use your data correctly to personalize their experience of your business.
- Excellent customer service – it’s simple but it goes a long way. How many people will return to a restaurant where the food is just ok but the service is outstanding? You would be surprised at how many.
- Apologise when you get it wrong – there is nothing that will diffuse a situation quicker than an apology when you have made a mistake. Of course you will have to fix it quickly.
- Be active in your community – There are a number of ways that you can show your customers that you care about the community which you operate in, they will notice and it will make a difference.
- Token gifts and discounts – small thoughtful gifts on their birthdays, a VIP discount structure for high value repeat customers etc are two examples of how to retain clients with this strategy.
- Invest in a CRM program – it’s not expensive and you can do a lot with the data which you will acquire.
These are just a few ways to keep your clients happy and engaged. To decide on the correct combination you need to understand the reason for the churn rate of customers in your business.
Once you have figured this out, you can come up with a winning combination. Why not let Your Boardroom help identify the cause of your client churn and formulate an effective strategy to retain your hard-earned clients.