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Save Money! Retain Your Customers!

Save Money!  Retain Your Customers!

Written by: Colleen Frye

When it comes to a quality operation, customers should always come first.  Customer retention can make or break your business. Studies from the U.S. Small Business Administration and U.S. Chamber of Commerce have found that acquiring new customers can cost as much as five to seven times more than simply retaining existing customers.

Before we go into the top 5 strategies to keep your customers coming back for more, here are three top reasons why customers may leave you:

  • 68% leave because they are unhappy with the service they receive.
  • 14% are unhappy with the product or service.
  • 9% decide to use a competitor.

Let’s check out these practical ways to keep your customers happy:

Use the words they want to hear

Certain persuasive words encourage customers to buy more than others, for example: free, new and instantly. Often times when customers hear these words and the promises they are implying, they’re more likely to enjoy their purchases more than they would have otherwise!

Reduce friction

According to a group of professors, nearly a quarter of spenders are ‘tightwads’.  George Lowenstein of Carnegie Mellon University recommends using reassuring words, like: bundles & small $5 fee vs $5 fee.  In fact, one company that tested using the word ‘small’ in their advertising received an increase of 20% more in sales.

Make it personal

In one study, researchers found that waiters could increase their tips by 23% just by bringing the table a second set of mints!  Though neither of us are giving away mints in our industry, we’re able to make business personal… remember their names, remember what’s going on with the family, ask about the last service they had, just to name a few. A bottle of water or hot cup of coffee can also go a long way!

Speed and quality

Speed is secondary to quality when it comes to customer service.  Sure, everyone wants a quick in and out when they’re getting a service done, but most importantly they want the job done right.  And in fact, being ‘courteous, willing and helpful’, were listed as the most important qualities and they were 6 times more likely to engage.

Label your customers

Did you know that as soon as one business owner created a gold member program compared to a lesser silver class, he saw a notable increase in sales?  Label your frequent customers, it’s human nature for people to like to be up high on the totem pole.

For more ideas regarding customer retention strategies, please contact your account manager.

 

 

 

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