Any company’s marketing department strives and deploys resources to increase market share. While this can be an effective tool of ensuring business survival, an even more important undertaking is taking care of old customers and inspiring loyalty among the new ones.
Image source: bigcontacts.com
Customer retention should be every business’s priority because of its contribution to not just the company’s survival, but also to its sustainability and success.
Several marketing studies have shown that attracting new clients is five times as costly retaining old ones. A two percent rise in customer retention impacts the business the same way as decreasing costs by ten percent. And a five percent increase in customer retention can raise profits by as much as 125 percent.
Image source: airlinequality.com
The major reasons that customers leave a brand are their perceived indifference towards the brand and poor customer service.
Consistent and engaging customer service must therefore be implemented across all platforms and channels. Giving clients the royal treatment as they avail of products or services is imperative. Additionally, as many customer service outlets as possible should be activated to provide the clients a venue to raise their concerns and receive help.
Incentives for long-time customers can also go a long way in sending these clients the message that they are valued.