We have been observing since ages that a customer is the king of kings. The business enterprise can only survive if the customers will come again and buy or hire products or services from you. No business can say that customers are least important to them, rather a customer works like an oxygen pipe of the life of the business.
Not only the prospective customers but also the previous as well as the existing customers; all are equally important for a business entity.
Importance of customer retention
As per a survey, 79 % of the future revenue depends on the current clientele of any business and only 21 % of the revenue will be generated through new customers. If you are spending huge money on customer attraction, they are buying your products and hiring your services for the first time, you must deploy the loyalty programs into your customer retention system, and else there is no fun of running the business.
Why customer retention so imperative?
Now the question arises that why is this customer retention so much important for any business to survive? Following are the pointers to explain the “why” part:
1. Require less efforts and money on marketing: This is a fact that when you already have a client base. You would not spend any huge investments to entice new customers. The marketing you have done already will help you in fetching more clients.
2. Quick conversion: When a business entrepreneur is looking for the options as to how to increase the sales, the tools like customer retention come into picture then. Such tools help in quick conversion and generate revenues with a very less amount of efforts.
3. Impeccable profits: As mentioned above, retaining the previous and existing customers do not take much investment, so when your sales are done without investing any sum or money, you will ultimately reap the actual fruits of your business.
4. Space for improvement: You know the tool of customer retention require very less or sometimes no investment. Your sales are going good and generating too good revenue hassle-free. You do not have to worry about different pros and cons.
Now, at this stage it is important for you to deploy certain programs to ask for the feedback of your existing customers. This is because it will help you in expanding your business with customer loyalty and they will value your business more.
5. It is cheaper: When there is no extra cost in the whole process that you have to invest, consequently the customer retention tool is cheaper.
How to retain your existing and previous clients for a long term?
Now when we have known the “why” part, it’s the time to focus on “how”. Following are the pointers that will clear as to how you should retain your existing as well as previous clients for a long term:
- Retargeting and remarketing: If you ask how to increase business online, this is one of the ways by which organizations uses the “cookies” from the devices of the users and then utilize those cookies to show the users your products and services again when they search for the similar thing.
- Must ask for feedback: Customer relationship management is deeply imperative for any small business. Make the customers feel important when they visit you, ask for their feedback and value it to improve your future customer dealings.
- Must respond to their queries: Generally, there arise many queries in the minds of the customers. If they will get satisfactory answers to their queries they will not move from one shop to another.
- Deploy a loyalty program: one might know as to how to start a small business and also to allure the customers, but retaining them for specifically a long term is quite indispensable for the business to survive. So, you must deploy the loyalty programs for the customers that help in retaining the clients for a long time.
Hence, customer retention is much imperative for any business organisation, no matter small, medium or large sized business. It helps a lot in cutting cost, time, save efforts and brings effectiveness and efficiency.