According to an oft-quoted business statistic, it costs six times as much to create a new customer as it does to retain one.
Why is that?
Well, there is no doubt that getting new customers definitely takes time, effort and money, and so, as such, long-time customers are, indeed, gold. for small businesses; they allow us to pay bills, hire employees and grow our business. This is how entrepreneurs keep the dream alive.
And that then begs the question: how do you actually create repeat, long-term customers?
Although a one-time customer is nice, it’s that regular customer that really makes the difference. Customers can choose any company to suit their needs; they will only choose yours again and again if you offer them something above the ordinary.
Here are five ways to retain customers:
1. Be excellent at what you do.
People hire you to do them a favor, or they come to your store or online store to buy something from you. If your product or service is average, it may be back, become a regular or not. But probably not.
What if you were excellent at what you do?
Then they will almost certainly be back.
If you sell flowers, create an exceptional bouquet, every time. If you cook, use good ingredients and cook with love.
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2. Provide excellent customer service.
Along the same lines, customers love you when they know you love them back.
Nordstrom is famous for its superior customer service, and it’s one of the reasons its customers are so loyal. Costco, on the other end of the retail spectrum, offers equally excellent customer service, and again, it also has exceptional customer loyalty.
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3. Treat your staff well.
One of the most interesting small business surveys I’ve ever seen looked at what makes someone a great franchisee. What sets the best franchise business owners apart? The biggest difference wasn’t a crackerjack marketing scheme or a killer place, it was, surprisingly, how the owner treated his employees.
It turns out that the better a boss you are, the happier your staff will be, and the happier they are, the better your customers will be treated. Satisfied customers in turn become regular and loyal customers.
It’s a cycle of success that starts at the top.
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4. Add value.
Recently, I decided not to charge some of my older clients for the weekly content my company creates for them. I told them that I really appreciated their sponsorship over the years and that was my way of saying thank you.
Yes, they were happy and I doubt they would go anywhere else for their content needs.
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5. Say thank you to your customers.
Most people, when they are done doing business with even a mediocre store, say “thank you”. But when you leave a big company, they are the ones who say thank you. And that’s not the only time they say it. They even say it when it’s unexpected, or for no reason. Great companies genuinely appreciate the people who patronize them and they let it be known.
So let me end by saying one last thing: thank you for coming here and reading my column. We sincerely appreciate it!