Improve Customer Retention To Grow Your Online Business Faster
If your goal is to grow a successful and profitable business of any kind, whether it is an online business or an offline business, one of your main priorities should be to have an ongoing system in place to help you improve customer retention. Otherwise you could be letting a large amount of your profits, slip through your hands each and every month.
This is often a very easily over looked aspect of a business because many business owners may not fully realize the true impact that it can have on and for a business.
Reasons Why You Should Improve Customer Retention
Reduce Marketing Cost – It has be estimated that it can cost a business five times as much to get a new customer than it takes to make another sale to an existing customer.
Word Of Mouth Advertising – One person who is very pleased with your
company and product could be enough for your product to go virally to
hundreds of thousands of new prospects as the result of one of your current customers doing word of mouth advertising for you. It helps to give you a competitive advantage over your competition. Your competition would have to work twice as hard to get one of your satisfied customers from you, than what it took for you to get them as a customer.
It increases your profit margin – The less money that you have to re-invest in marketing and promoting, the more money you will have flowing down to your bottom line profits. These are just a few of the many different benefits that you will be able to enjoy as a result of taking good care of your current customers.
How To Improve Customer Retention
The good news is that as a result of the increased use of the internet and social media it is a lot easier than ever before to implement an effective strategy to improve customer retention.
Here are the basic steps that you can take
Step 1.) Create An Opportunity For Customer Engagement – This can be done by having a company website or blog. This should have a contact number or email address where customer support or customer service can be contacted.
You can also create a social media presence on the different social media sites like Facebook, Twitter, LinkedIn, etc. This will also give your customers the opportunity to ask any questions that they might have.
Step 2.) You should have a followup or feedback system in place to contact each and every customer to get their feedback on their buying experience. This can be done from a thank you page or by using an email autoresponder. You should also plan on doing a periodic follow up to find out how well the product is meeting their needs and what (if any) improvements or other products would be helpful to them.
Step 3.) Create an appreciation program for regular or repeat customers to show your appreciation and increase their customer loyalty.
These are just 3 basic things that you can do to start improving your customers buying experience with you and your company. And the more you
tailor a program towards your specific customer base, the higher your repeat sales are likely to be.
As you can see one of the smartest and most cost effective ways to grow a successful and profitable business is to make sure that you do as much as possible to not only get new customers but to also take steps to improve customer retention as well.
Tagged with: Improve Customer Retention
Filed under: Internet Marketing
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