Businesses traditionally spend a lot of money and effort to attract new customers, but spend far less on customer retention. Why?
According to a survey related to current small business marketing and retention, less than half of small businesses have a customer loyalty or other retention plan in place.
While it’s hard to measure definitively, sources say it costs between 4 and 10 times more to acquire a new customer than it does to keep an existing one. (The variance is likely based on the industry or market your customers come from.)
If you don’t have a customer retention program, this is a huge area for opportunity for your business. If an existing customer doesn’t feel they are important to you, or you don’t offer them any incentives to keep coming back, they are twice as likely to try a product or service from someone else.
Email and social media are generally the most effective and immediate ways to build a loyalty program. They don’t typically cost a lot to implement, but they do take resources and time. Using these tools, businesses can quickly measure the retention rate of their customers, their website or in-store visit history, purchasing patterns, and more; in easy to see and manage metrics.
Loyalty programs give customers access to exclusive perks and bonuses and make the customer feel good about your business. Retention programs help create a more convenient and personalized buying experience, increasing the likelihood of turning a one-time customer into a loyal advocate for your brand or business. When a customer feels like you care, they’re more likely to return. Pretty simple!
Make sure your retention program actually gives your customers a reason to stay loyal to your business. Communicate regularly, reward them with free gifts, discounts, or ‘members only’ type of rewards, and create sharable content and create “FOMO” from non-customers (Fear of Missing Out).
If you need help setting up a manageable customer retention program, please contact us!