Just like a roasted turkey is a staple for most homes on Thanksgiving, your customers are key to your business’s success, so you need to let them know just how thankful you truly are for them. The holiday season, especially Thanksgiving, is a great time to let your customers know that you know that they are vital to your success. You’ve heard it before, but we will say it again, customer retention is key.
What is Customer Retention?
The customer is key and it’s important to ensure that they know, that you know that. Customer retention is the practice of increasing a business’s repeat customer rate and extracting additional value from those customers. The goal of customer retention is ensuring a customer will make repeat purchases, be satisfied with a company’s products and services, and not go to a company’s competitor.
Generally speaking, a lifelong customer is better than a one-time consumer. Retaining an existing customer is typically much better than acquiring a new customer. Why? It typically costs much less to keep a customer than to gain a new one. This is where customer lifetime value comes into play. Knowing the lifetime value of your customers, will help you to understand just how important it is to keep them around and let them know how much you appreciate them.
Do Your Customers Know You are Thankful for Them?
Since customer retention is key, you need to do things to make sure your customers stick around. One of the best ways to keep customers is to show them how much they mean to you and your business and how thankful you are for them. Showing your customers that you are thankful for them doesn’t have to cost a lot or take a lot of time. Making your customers feel appreciated all year round is important, especially during this time of the year. This can make all the difference in keeping a long-term customer and experiencing their maximum customer lifetime value.
Address issues and concerns right away. We have all heard the saying, “The customer is always right”. It’s one thing to say it and another thing to practice it day in and day out. Putting the customer first and listening to them when they have something to say, even if it’s negative or you know it to be false, can make all the difference. Regardless if you agree with what a customer is saying or not, they are feeling a certain way and you need to make it right and ensure they get that warm and fuzzy feeling back again about your business. Do whatever you can, within reason, to let them know that you are taking what they are saying seriously and address things as soon as possible.
Create some personalized communications. Customers are valuable to your business, so take some time and send them a handwritten card or email on occasion. This time of the year is a great opportunity for sending a holiday card. A card in the mail may be more effective, because it can make you stand out and be different. The card/note can be simple but should send the message that you are thanking them for their business. Don’t assume that all customers want to be treated the same, so ask them and encourage them to share with you how they feel most valued and heard.
Encourage regular feedback. Customer retention is key, so you should be doing and offering things that your customers want and need. Regularly ask your customers for feedback about your products, services, and interactions they have had with other people within your business. Let them know that you value what they have to say and use their feedback to improve things. Ask them to provide reviews for your business and when they do, good, bad, or indifferent, be sure to respond and let them know that you hear what they are saying. As mentioned above, whenever a customer reaches out, respond to them immediately, even if just to let them know that you will look into something and get back to them. Let them know that they are important to you and you value their time.
Letting your customers know how thankful you are for them can be difference between having a lifelong customer or a one-time purchaser. Customer retention is important, so you should be continuously trying to come up with ways to let your customers know just how valuable they are to you.
Water Bear Marketing can help. Hydrate with ReEngage® is designed for small to medium-sized businesses or a marketing team; it allows you to thoughtfully communicate with your customers consistently and effectively. Hydrate with ReEngage® can help you stay top of mind to your potential, current, and former customers through text, voice messages, email, letters, and postcards, all within our reporting dashboard.
Contact us today for a free advertising consultation.