How To Increase Your Business Profit With Effective Customer Retention Strategy

Customer retention is the key aspect of a successful business. According to research, increasing retention rates by only 5% increases a company’s profits by 25-95%. Cost of acquiring new clients is always higher than retaining an existing client.

Small business usually considers spending less when they first interact with new brands. Later on, they spend more with companies they’ve already done business with. Also, they will refer to others. It also found that most businesses need to retain clients for at least 12 to 18 months to break even on their investment.

Why You Should Focus On Retention Rate

Affordability: It is more expensive to acquire a new client than to retain the old one.

ROI: An increase in retention rate can increase your company’s profit by 25 – 95%

Loyalty: Retained clients buy more often and refer their friends and family as they know the value of your service or products.

So a business needs to focus on retention strategy.

Keep Your Customer Happy

You should understand that everyone is busy in this busy world. You should value your customer time and value them. Always make sure your client feel important, listen to them carefully and understand their needs.

Make sure to keep your promises to your customers and thank them whenever possible.

91% of unhappy customers will never buy from you again. So it is your responsibility to keep them happy to increase your retention rate.

Conduct An Effective Exit Interview

An exit interview is one of the powerful ways to understand why your customer leaves to improve and prevent your future consumer from leaving your service.

It is a known fact that 90% of consumers use online reviews before visiting a business and 88% of consumers trust online reviews as much as a personal recommendation.

There is an endless reason why your client leaves you. Some of them are

1. They found your competitors that better matches their needs

2. Their business has a financial problem

3. Your service charge is too expensive.

4. Lack of customer service.

Here are some of the sample question to ask in a client exit interview :

1. Why did you initially signup our product or service?

2. What did you like about our service or products?

3. Did we meet your expectation?

4. What could we have done differently?

5. What would it take for you to reconsider our services?

Take your first step to improve your services or product by collecting client feedback. By taking the necessary steps to improvise your services you can increase your retention rate.