You know how at school when you placed a magnet into a file of iron filings, they clung to the magnet? Well, that’s what customer retention is all about – they must want to stick with you, through thick and thin!
The most notable property of a magnet is its force to draw metallic materials, such as iron, steel, nickel, cobalt, etc. and whether it attracts or repels other magnets. Taking the analogy further, think of you being the magnet that attracts the coins in your customer’s wallet while you repel other magnets (competition). While a magnetic field is invisible, its influence is strong. How strong is your attraction to retain customers?
Customer retention is all about keeping in contact with your customers, more so if there has been a lapse in communication.
Customer retention can go two ways: you can repel them, or they can be attracted to you and your services. The aim is that your fantastic product or service will create customer loyalty and devotion in a sea of iron filings. You must make customers feel valued else they’ll leave and that will cost you in the long run as they are attracted to other options. Research shows that attracting a new customer costs your business six to seven times more than retaining an existing one, so customer retention is key to enhancing your bottom line.
Retaining a customer is built on trust, they must believe that you can solve their problems and queries and that you have time for them, that you value them — hey, you may even know their name, which is a huge advantage as they won’t feel relegated to a statistic. However, be warned, ignore a customer’s needs and your customer retention ratings will plummet.
Why is your customer retention not working? Is your magnetic attraction waning?
Keep in contact with your customers, more so if there has been a lapse in communication. Phone them up to find out how they are doing, how the pet canary is and how little Johnny’s grades are doing. CARE! It shows.
If you want to retain customers, go beyond being nice and polite – as that is the bare minimum in customer retention! Do something a little extra, set yourself above the competition and your customers will stick with you. Anticipate what they may need and send them relevant info or even advise them about an accessory or such like that will make their purchase even more efficient, practical, beautiful etc. Customer retention is not about seeing how much you can get out of them, but rather what you can do for them. So what is your unique selling point (USP), why should they be attracted to you, and then stay with you?
Is your customer retention strategy working?
Always bear in mind that once-off purchases won’t fuel the growth of your business. Anticipatory service is all about knowing your customer base so well that you can tell them what they want before they think they want it. Put a strong customer retention plan in place, do not leave it to chance as it’s future revenue that will ensure your business thrives.
Be the biggest customer magnet in the industry and watch your customer retention climb!