Customer Loyalty and Retention Tips

It’s been said that it can cost up to five times as much to win a new customer as it does to keep an old one. Customer loyalty and retention is the secret to a business that grows from gaining new customers but also from sustained repeat business.

What is customer retention?

Customer retention refers to the methods used by a business to reduce the number of customers who do not engage in repeat business. The goal of customer retention action is to help businesses keep as many customers as possible and not lose them to another business. These actions can take the form of good customer service, competitive pricing and strong branding.

Building up positive relationships with customers can not only help you to retain the individuals themselves but can also help to bring in new customers through their recommendation. Understanding the value of a single customer over a lifetime of repeated business will help you to realise the importance of customer retention. Losing the trust of a loyal customer effectively means sending this income to another business.

The importance of great customer service

As well as having a good quality product or service, a competitive price and an eye-catching offer, customers will return for a great customer service experience. When they feel that they have a personal relationship with your brand and your staff they are more likely to remain loyal to your business. A fundamental of customer service is having a business culture where your staff are willing to go the extra mile for every single customer.

Adding value for your customer

Being of value to your customer will not only make them feel that your business is worth investing in but can also, in turn, add value to you. There are a number of ways to make customers feel important whilst also providing you with an opportunity to expand your audience and improve your business.

    • Online - Building up an online presence through social media, content marketing and forums offering advice and information about the wider industry can provide your customers with a reason to spend more time interacting with you and your business. Regular, useful emails can give you an opportunity to reach out to customers and remind them about your business, or even offer them an incentive if you think they might have forgotten about you.

    • Sales - Go beyond providing your product or service. Whether you can afford to offer something for free, a great discount or a loyalty card, these incentives can encourage customers to return and also make them feel valued. Coupled with great customer service this is a straightforward way to retain customers.

    • Thanks - It is important that you thank your customers for choosing your business. This could be in person during a sale or via email, just let them know that you appreciate their custom. You could also use this opportunity to ask for some feedback, perhaps in return for a special discount, to find out where your business has excelled and the areas which need further development.

Business insurance from Towergate

At Towergate we have a range of business insurance policies to suit your needs. For more information visit our dedicated business insurance page or call us on 0330 123 5741.