Keep the Customer(s) Satisfied
Customer Loyalty and Retention is a critical phase of Customer Lifecycle Management, and if your business isn’t paying attention to your Customer Lifetime Value (CLV) it’s time to start.
Customer don’t grow on trees — it takes money and effort to find them and attract them. That’s why Customer Acquisition is so important.
Once you’ve gone to the trouble of getting customers, though, it makes more sense to encourage them to hang around long as possible than it does to just focus on finding new ones all the time. The longer your customers stay with you and the more money they spend, the greater their CLV and the greater the boost to your bottom line.
In fact, the power of loyal customers is so great that according to the Harvard Business Review, “increasing customer retention rates by 5% increases profits by 25% to 95%.” Those are some powerful numbers for an often overlooked group of customers.
So, just how do you turn a casual shopper into a loyal customer?
MAKE IT EASY TO DO BUSINESS WITH YOU
- Make your processes easy: easy to sign up, easy to shop, easy to reach you.
- Help your customer by teaching them how to make things easier for themselves.
- Make it easy to reach you. I’m repeating that because it’s THAT important. (Think about how frustrated and annoyed you get when you have a problem or question, and nobody is answering you.)
REMEMBER THAT COMMUNICATION IS A TWO-WAY STREET
- Talk WITH your customers, not at them. (If all you’re doing is talking about yourself, chances are you’re not getting a second date.)
- Check in with your customers. They are not static, they are growing and changing people, just like you and I*.
- Ask your customers “How are we doing?” to make innovating and adapting a communal effort. This can help you stay ahead of the competition.
KEEP YOUR CUSTOMERS HAPPY
- If you’ve been listening to your customers, let them know about it. Show empathy, provide some solutions.
- Reward your customers. (We all really still like getting gold stars.) Show your customers you vaue them with little gifts or loyalty points. Remind them of your value in their lives.
- Be proactive: If there is a problem fix it, even if your customer isn’t aware of it. Make sure your customers have everything they need to get full value from your product or service. (You know what it’s like to get back home only to find you’ve forgotten a key ingredient or part.)
Keeping your focus on Customer Lifetime Value (rather than Customer Acquisition alone) is perhaps the most important key to successful Customer Lifecycle Management.
It all pretty much boils down to:
➩ Find customers, make them happy and keep them happy, because more happy customers = more loyal customers = business success.
* This of course does not apply to any of you sweet little bots scanning this page and is in no way intended to offend you.
Originally published at RogueNotion.com