You work SO hard to land a client…and then she leaves you and you then have to work SO hard to land a her replacement.
But what if you could prevent clients/customers from leaving you? What if you didn’t have to spend the time and money to replace a lost client?
Financial benefits of customer retention
You’ve undoubtedly heard countless times how much more expensive it is to find a new client than it is to keep one.
- Landing a new customer costs five times as much as retaining a current one.
- Growing customer retention by as little as five percent can increase company profits from 25-95 percent.
- Upselling to a current customer has a success rate of 60-70 percent. The success rate for landing a new customer? Five to 20 percent.
- U.S. businesses lose $136.8 billion a year due to customer departures.
The least expensive way to grow revenue?
Growing customer retention, obviously!
And it’s not that difficult, frankly.
Tips for decreasing customer churn
They already liked and trusted you enough to become a customer, so all you really have to do is continue doing what you did then to keep them now.
Here’s what that looks like:
- Connect regularly with your current customers. You do so by sending them regular emails with news about your products/service, your company and special deals in which they may be interested.
- Provide them with valuable tips and news. Write blog posts that help them solve their problems/reach their goals. Turn those blog posts into videos or case studies and send customers links to them once they’re posted online. The idea here is to stay top-of-mind with your customers so that if they need what you offer again – or you want them to buy a different, better offering (upselling) – they’ll buy from you. Again.
- Continue to provide outstanding customer service. This includes when they have a problem and they contact you about it. But it also pertains to the quality of the information you provide (as mentioned above) as well as the discounts/sales and new products you offer. Basically you always should treat current customers as if they’re prospects and you hope they buy from you.
- Personalize their experience with you as much as possible. Just as customer service phone reps are instructed to use a caller’s first name, so should all of your correspondence. But true personalization extends beyond email salutations. You should:
- Work to learn if a particular customer prefers email or text messages when sending them information
- Study customer purchases and offer discounts on services/products they purchase again and again.
- We’ve already done a deep dive into customer experience personalization; no need to repeat ourselves here.
- Focus your attention on your most loyal customers. This may seem counterintuitive, but it’s far too easy to “forget” about your tried-and-true clients because they’ve “always been there.” Ignore them and you risk losing them because they may no longer feel special and – most importantly – appreciated.
Content – and lots of it – is key to personalization
As you’ve no doubt noticed, keeping customers means presenting them with a lot of attention via content – emails, videos, texts, etc. You are, in effect, engaging in inbound marketing.
Learn more about how Ingenex Digital Marketing can help you in your inbound marketing efforts in preventing customer churn.