Today, we are going to look at how to improve your customer retention rate. Now, a lot of times people will invest more money into gaining new clients rather than keeping their existing ones. This is a big mistake. It’s actually much cheaper and more efficient to focus on keeping your existing clients compared to simply going after new ones. Let’s go through six ways to improve your customer retention rate:
1. Change your mindset. Right now, you might be thinking something along the lines of, “I’m going to offer a great product or service, and my clients are just going to stick with me forever.” There’s a little bit of truth to this, sure, but the reality is that people expect your product or service to be solid. Of course they won’t stay with you if your product or service is crummy. In the competitive market we live in, just having a good product/service is not enough. You also have to do other things to increase retention.
2. Celebrate how long or how much that someone has done business with you. Perhaps host a special party, dinner, or some other type of appreciation event that could honor the people who have been with you for a while.
3. Survey your existing client base. Many people don’t do this because they figure that no one will bother filling out a questionnaire. But there’s a reason that large companies send out surveys all the time. What you want to do is seek and really encourage real, honest feedback. I know some of you may not want to survey simply because you’re afraid of the results you might get. There’s a fear involved in what people will tell you. However, you need to face reality, and find out what is working and what isn’t so you can make the necessary changes. You should also consider creating an incentive for people to fill out the survey.
4. Write a personalized handwritten thank-you card or note for long-term clients. It has to be something that is unique, and not sent out to the masses. That is a great way to stand out and increase retention.
5. Involve your clients in a cause or purpose. Give them something to rally around that’s bigger than your organization. For example, serve together in a nonprofit. Have outings where you do charitable work together. When you get a community of people serving together, that’s going to dramatically increase the retention rate of your existing client base. Besides, it’s fun and meaningful.
6. Ask for referrals from existing customers. Not only will this allow you to gain new clients, but there’s another benefit to it. If your clients are willing to refer business to you, then obviously they’re extremely happy with the service you provide them. They’re truly loyal, long-term customers. It helps to know which of your customers fall into this category.
So as opposed to just focusing on adding new customers, aim to increase retention first. Have a better than amazing day.
