“Make new friends, but keep the old; Those are silver; these are gold.” What do these words of 19th century Welsh composer Joseph Parry mean to your business in today’s marketplace? Substitute the word “customer” for “friends” and you’ll see what I mean. Keeping the customers you already have can be more valuable than acquiring new ones.
That seems extreme given the money businesses spend trying to attract new customers. But research bears it out. A Harvard Business Review study suggests that increasing customer retention rates by a mere 5% can result in increases in profits anywhere from 25% to 95%.
It’s hard to argue the value, so the question becomes how to best accomplish the goal. These 5 tips can help you keep your current customers happy and coming back for more.
1. Show you care
Treat your customers as friends. They all have personal stories and battles they may be fighting. If a customer gets short with you, respond with grace and understanding. Look at situations from their point of view. Respect and genuine compassion will go a long way if problems arise.
2. Keep in touch
Don’t wait to hear from your customers. A competitor may catch their attention while you’re being silent. You can do this with calls, emails, handwritten cards, newsletters, and social media.
3. Surprise them
Go the extra mile to meet your customer’s needs. That could mean personally delivering a part for repair or giving a gift card just for being a good customer. This can be a big win because people are apt to respond to a positive action with another positive action. The results range from additional purchases to a reference or a good Google Local review.
4. Act with integrity
Say what you’re going to do, and then do what you said you would do. Building trust is fundamental in any long-term relationship. If things don’t go perfectly, take responsibility and make it right.
5. Have fun
Let’s face it. Sometimes business can be boring. Mix it up with an appreciation event or a dinner out with spouses. In any case, having a spirit of joy and fun in your interactions will give your customers a reason to return again and again.
You may not see immediate results, but like with a friendship, over time the richness of the relationship will grow and become invaluable for both sides. Long-term clients cost less to nurture, spend more, and can help your business grow with referrals and positive reviews. An investment in your customers is worth its weight in gold.
-Roberta
