Let’s face it — loyal customers are every entrepreneur’s dream. Indeed, there is no better feeling than when you get returning customers. According to a research done by Bain & Company, 5% of customer retention can yield a more than 25% increase in daily profits.
Although getting customers queuing for your services can be a great feeling, retaining them can be a daunting task. It requires the mastery of customer relation techniques to build and nurture the required trust. So, what are some of the things you should know and do to ensure you get returning customers?
Below are several tips that will guarantee you get returning customers to your business.
1. Foster Loyalty
According to a study done by SumAll, first-time customers have a 27% chance of coming back, while those who have purchased the second or third time have a 59% chance of coming back. The key is to ensure you capture their attention from the first time.
You can try to entice them with offers such as 50% off on their second purchase. Of course, if they will require what you are selling again, they will consider the value and come back to your business.
Over the years, a dedicated loyalty program that rewards its customers has proven to be one of the most successful techniques that foster loyalty. It has been proved to be the most reliable method of gaining customers by airlines, credit cards, and hotel loyalty programs.
2. Redefine Your Customer Care
The majority of business owners think that price is the main reason why customers avoid buying their products and services. The truth is, poor customer services are the most significant cause of customers disassociating with a business. Besides, if the quality of your products or services is poor, they are four times likely to defect to a competitor.
Note that if you happened to have disagreed with your customers and they leave your business dissatisfied, they will likely tell nine to fifteen people. As a result, it will lead to dire consequences that will negatively affect your business. Note that even when the economy is running contrary to the expectations, customer experience is given the highest priority on the consumer’s list.
If you can manage to keep your customers happy, they will always have a reason to come back for more. Note that the majority of the customers value a positive reception more than the price of the commodity.
3. Offer Customers the Freedom of Choice
Typically, customers feel appreciated when they are given the freedom of choice. Providing them with a variety of options will make them feel like their opinions are valued and that they can receive a unqiue product tailored to their preferences.
In the current market, brands try to provide their customers with the freedom of choice by manufacturing products with different colours and variations to suit their different tastes.
However, it is also imperative for individuals to note that the customer’s freedom of choice is not limited to colour or variants. It takes more than that to make your product attractive enough to pull in repeat customers. Make sure you're always delivering a high-quality product that will leave your customers feel like they're getting real value for the money they're spending.
4. Always Make Your Customers Feel Special
According to Robert Cialdini’s book, Principal of Influence, there is a theory known as the principle of reciprocity. It states that when a user feels appreciated or valued by a particular brand or company, they return the favour by showing a special consideration towards the company’s brand.
Indeed, this theory says it all. If you want to retain your customers longer, make them feel special and appreciated. Although selling them the products might fulfil their needs, making them happy counts in the long-run. Also, ensure you do a follow-up when interacting with the customers.
If your business is based online, ensure you always leave a “thank you” note every time a customer makes a purchase. Leaving the note will show the customers that you appreciate their purchase and that you look forward to meeting them again. In the event they reply, you will be sure you will have already won a returning customer.
Designing a logo or messages that make users of your product feel special is yet another technique to get your customers coming back. Ensure you get the best designer and incorporate all the required elements in your packaging.
5. Redefine Your Brand
Making your brand look more attractive is critical to ensuring your consumers associate and recognize your products whenever they see your logo or message. Besides advertising, product packaging is one of the best ways to ensure your brand stands out. What’s more, making your packaging look fun ensures your product stands out of the rest.
You can also try to engage users with your brand by incorporating an enticing message that will help retain your brand’s value in the market. Apart from that, you can also engage users by asking them about their shopping experience. You can also solicit their opinions and find out a way to improve your brand or services.
Without a doubt, “Brand recall” as the majority of advertisers call it is one of the most successful techniques of getting returning customers. Ensure you integrate the latest design and colour mixture in different variants. Furthermore, it might only take a redefined appearance to attract more customers.
Do Returning Customers Determine the Progress of Your Business?
Of course! Returning customers are fundamental to the growth of any business. As mentioned earlier, if you get 5% returning customers, you will likely profit up to 25% every day.
Now that you know how important it is to retain your customers, you should ensure you put into consideration all the above tips. Try them out, and the results will speak for themselves.
