The Value of Repeat CustomersMarch 19th 2014
Why Repeat Customers Are Worth Their Weight in..Tips for Business Owners
By Eric Bischoff - March 27, 2015
In the fast-paced, technological world we live in, customers are more educated than ever before. In just a few seconds, customers can access practically any information they could ask for (and sometimes more than they care to know).
This is one of the reasons that attracting and keeping customers is difficult. Finding ways to retain existing customers is essential, because they’re being swamped by messages from your competition. With that in mind, here are 3 reasons you may be losing customers in your small business, and actions to consider taking that will help reduce customer turnover:
We’ve all seen it before; they catch you at a low, introductory discount, and then gradually as your time (loyalty) progresses, so does your monthly bill. Doesn’t this seem a little backwards? Offering discounts or incentives to find new customers is often necessary, but existing customers can quickly resent the fact that their loyalty isn’t equally rewarded. While finding new customers is important, existing customers are the backbone of any successful business.
If you haven’t already, try implementing a customer rewards program. There’s no reason to overcomplicate this, keep it simple. You could reward customers after so many visits, or reward them based on how much they spend. There are countless possibilities! Whatever you choose to do, make sure your existing customers feel valued and appreciated for their ongoing business with your establishment.
Take the next few seconds to think of a restaurant where you frequently dine. Now, ask yourself, why am I a frequent diner here? Chances are it has something to do with: outstanding quality, convenience, unbeatable prices, extraordinary service, or, in short, exceeded expectations.
This is commonly referred to as creating a WOW customer experience. By creating a WOW experience, you are giving customers a pleasant surprise. Now that’s something to talk about! Remember, if you want customers to return, you need to give them a reason to return. How will you create a WOW experience?
Every business loses customers to their competitors at some point. While this fact can seem intimidating, the bigger question to ask yourself is how many customers are being lost due to competition?
While losing customers to competition is inevitable, don’t feel like you have to copy everything that they do. Rather, focus on what sets you apart. In other words, do what you do best, but know what your competitors are doing as well. To stay aware of the competition check their ads frequently. On occasion, encourage friends or relatives to shop there and share their feedback with you. This feedback will allow you to make adjustments where needed and stay ahead of the curve in terms of customer retention.
What strategies have helped you retain existing customers and increase customer loyalty?