In today’s business world, all customers really want is to get the most out of their money. This is why customers retention is difficult. If a competitor offers the same or more than what you offer and at a lower cost, chances are your customers are going to flock to them regardless of how much they like you. Having a brand new buying customer drawn to your business is actually much more difficult and expensive to acquire than it is to have an existing customer come back and buy from you again. With the money you can save by focusing on attracting existing buyers back, you can then have leeway for even more ideas and implementations to get people to come back to you. Not all customer loyalty programs are successful but if yours is, you can increase your customer retention which in turn will dramatically increase your average net customer value. Here are a few ways you can do this:
1. Identify your best customers based on profit. This is not to be confused with the volume of customers or the customers you hear from most often, but the ones in small numbers that you only hear from once or twice a year. If possible, identify the actual customers and then put out a lead list so you can know who to target for additional sales. Knowing your best customers is extremely important.
2. Discover what people like the most from what you have to offer. This is where you gather information from different groups of customers on what kinds of offers or improvements you can make in order to increase the value of your products. Your highest profit group of customers is likely to be the smallest group and so it will not be difficult to gather information from them. You can use anything from phone calls, emails (make sure they’re opted in first!), or inexpensive surveys. Just make sure you have a large enough pool of responses before doing anything else.
3. Define the most alluring offers based on the information gathered by your top spenders and other subgroups. If most of your clients prefer to be rewarded with free stuff, then set up a program that does just that. If they prefer to be given extra accommodations instead, accommodate away!
Your customers are the reason you now have money in the bank, so why not reward them for it? It is not only a way of showing your appreciation but you will definitely see an increase in customer retention, your ultimate goal for growth.