There are three ways to increase profits in business. They are:
- Increase the number of customers.
- Increase the number of sales you make to each customer.
- Increase the value of each sale.
Every new customer means additional revenue. Since it costs in terms of time, energy and money to acquire a new customer, no business can afford to lose existing customers with whom the sales employee has already built good relations. Every organization separate sales employee who concentrates on servicing the existing customers and a business development manager or executive who keep looking for prospective customers
High consumer retention indicates that existing customers continue to purchase goods and services from you. It’s about creating a process from the very beginning that fosters communication, trust, and mutual growth. organizations with higher retention rates will have more success in launching new products or venture into a new business vertical with existing customers due to their good reputation and loyal following. Apple products are a classic example of brand loyalty and existing customers marketing the product to their peers.
Existing customers can help the business in many ways.
- Businesses can expect regular orders.
- Business can expect an increase of orders as requirement increases.
- Goodwill gets built and referrals can be obtained from customers.
- Satisfied, loyal customers are more likely to sing a company’s praises and refer — bringing in new customers, free of charge.
- The trust one builds with customers helps in many ways.
What strategies one can adopt to retain existing customers? Let us explore the popular ones and understand them.
Use words that encourage purchases.
Include purchase-friendly language throughout the sales process. The products are sold first with words you use to describe your product.
An example would be the Post Office Scheme which says: ‘Invest Rs 95 and earn Rs 14 lakh, here’s how’.
In actual it is Rs.95 every day which you will come to know only when you are getting into it to know more.
Be proud of the product and keep customers updated.
The sales executive should be proud of the product he is selling and this comes with a thorough knowledge of the product. This excitement should get transferred to the customer with full conviction of the usefulness of the existing product and other new products. Come up with interesting, light-touch ways to continue to build up the credibility of your company’s brand with the customer.
Understand customer needs
No customer wants to buy products that may not be useful to them. The sales executive should understand the customer’s requirements and accordingly modulate the product. As customer needs evolve, companies need to upgrade their products to cater to those very needs to avoid becoming obsolete.
Communication – key ingredient
To move the products in well-oiled frictionless movement, two-way communication will help to keep them with you for a long time. Training the customer support team on the entire customer lifecycle so they can understand a customer’s pain point and a good idea of past issues will help them to solve these issues smoothly.
Build a customer loyalty program.
One of the simple ways to foster customer loyalty and retention is by providing more value to them– loyalty bonuses or rewards for customer referrals. A customer loyalty program can reward customers for their continued loyalty. This keeps customers happy because they’re getting more from the experience than just your product or service.
Impress existing customers with your product support team.
Supporting customers is an important factor to keep them coming back with orders. Even if customers love the product, the after-sales service that is provided with that product can make or break their relationship with your business. So, it is not just sales that decides the retention of the customer, the support that is provided in terms of reaching out to the client giving information of the despatch of product, enquiring if all is well after the delivery reaches them, prompt inquiry just before the next order etc will retain the customer. While improving customer service, focus on quality, not speed.
Get to know your customers.
To create ways to best serve your customers and encourage them to stay with your company, you need to understand them deeply inside out. A relationship with the customer is built with customer service. This will allow knowing your customer better. Like every other concern, customers are more likely to share bad experiences than good ones. Maintaining relationship help in simple fixes before bad news spreads. There are some techniques which help to strengthen customer relationships
- Making customer have a strong affinity to the product.
- Make customer service personal. Do not just leave it to customer care.
- Meet their needs every time.
- At the time of problems stand with the customer. This will take you a long way.
- Take a step further when the customer is angry and upset. Do not rift.
- When the product is customer-specific, knowing the customer is essential to know the customer’s requirements.
Developing prospects for customers involves time and money. Whereas, companies can generate additional sales through their existing customers. So, the bottom line is to retain customers. Companies can earn more per customer without an increase in their customer acquisition cost.