Statistics show that it costs five times more to attract a new customer than to keep one. Growing businesses, however, typically devote more time, money and effort to customer acquisition than retention. Even with cost of marketing, digital and traditional, and sales, new clients are still not buying as quickly or as easily as current clients.
With that in mind, let's discover some tips for keeping current clients happy and loyal.
If you've started a new business, of course you need to spend some time and money attracting potential clients. New customers will help grow your business and enable you to pay whatever marketing and sales costs were required to attract them. One of the most difficult parts of being an entrepreneur is landing those initial clients. Get them in the door, by all means, so you can continue building your business.
Then remember....
Upselling current clients is dramatically less expensive than landing new ones, especially if you've established a solid, trusting relationship. A good customer relationship will lead to client referrals and help with the success of your company. On the other hand, an unhappy client can easily harm your reputation if it goes sour. Business research shows that a 5% increase in customer retention efforts can increase your company profitability by 75%. That's a great reward at very little effort.
What efforts lead to customer loyalty and greater sales?
You want your clients to stick around for a while, pay their bills on time, refer others, and give you great testimonials for your website. A customer that stays loyal to your business will help your company grow AND succeed. Creating loyalty may seem like a no-brainer - hold up your end of the contract and offer good customer service. In actuality, you may need to do more including creating a client relationship model for your business.
Consider the following:
Communication
Planning
Responsibility
More than likely, your clients have hired you to fill a need that they don't have in-house. As you become a reliable resource, your skills prove invaluable and your clients will want to include you in the picture of their business future.
Attracting and retaining clients is important to the growth and success of your business. Most importantly is attracting and retaining the right clients. Defining your client relationship model should include the qualities and standards that make up your perfect client. With a brand new company, you may have some idea of who your target clients would be but pay attention to any red flags that may signal a bad situation later. The more clients you encounter, the more you'll learn who you can work with and which clients you need to bypass.
Listen and pay attention to the clients you're attracting to your business. Ask questions and take the time to understand how your work can prove invaluable to their business. Eventually, you'll have established a substantial foundation of clients who enjoy working with you and with whom there's mutual trust.