Surprisingly few businesses make customer retention a priority. It’s estimated that nearly half of all companies put most of their effort into acquiring new customers, while only about one-fifth emphasize marketing to current customers. But if you’re a marketing pro trying to get results on a budget, targeting people who already know and like your product makes perfect sense. Consider these statistics:

• Retaining a customer costs only one-fifth as much as acquiring a new one, according to e-commerce specialist Invesp. Yet that repeat customer is 50% more likely to try new products, and will spend 31% more on average.
• Consequently, even a 5% increase in customer retention can boost profits more than 25%, according to Bain & Company research cited in the Harvard Business Review.
• Nielsen research also shows the powerful influence that happy customers have over your prospects, with a staggering 92% of consumers worldwide saying they trust customer reviews and word of mouth. As confidence in traditional paid media falls, the recommendations of friends, colleagues and peers are becoming stronger factors in buying decisions.

Here are three ways you can capitalize on existing relationships.

Launch a loyalty program. In a worldwide survey, nearly three-quarters of loyalty program members said they were more likely to do business with retailers that rewarded them – and two-thirds said that loyalty programs made them shop more frequently and spend more. Even if you’re not a retailer, there are many ready-made loyalty programs you can implement to keep customers coming back via discounts, freebies, cash back, rebates or merchandise. And if your customer base includes a large share of millennials, you might look into non-monetary perks such as priority service, personalized products and charitable donations. These are highly valued by younger consumers and can also enhance your brand.

Encourage brand advocates. Highly satisfied customers who share positive reviews and advice online exert a powerful influence over prospective buyers. Even a 12% increase in positive writeups from customers can represent a 200% boost in revenue growth. Earning passionate fans starts with delivering consistently excellent service, but you can often reward customers into becoming advocates. Form a VIP club or referral program, honoring people who send new business your way. Create a customer council with free product samples or reviewer privileges. And always leverage social media to spotlight successes, putting customers front and center with tip of the week features, video contests featuring their stories or “before and after” business transformations. When content validates customers, they’ll share it with the world – while sharing news about you.

Romance your customers. Set aside some time this week and make your valued customers feel special. What could be easier? It can take forms small or large: a card, a gift, an FYI article touching on their interests, or even a lunch invitation. Providing a no-strings surprise shows that you’re not taking them for granted, and that is the foundation of a great customer experience.

Growing your business starts by growing relationships. For ideas on how to make it happen, give us a call at (603) 658-1600 and take your customer loyalty to a new level.

LINKS

https://www.invespcro.com/blog/customer-acquisition-retention/

https://hbr.org/2014/10/the-value-of-keeping-the-right-customers

http://www.nielsen.com/us/en/press-room/2012/nielsen-global-consumers-trust-in-earned-advertising-grows.html

http://www.nielsen.com/us/en/insights/reports/2016/get-with-the-retailer-loyalty-program.html

https://brandongaille.com/15-things-brand-advocates-need-know/