CRM

New Business from Old Customers: How to Master Customer Retention

By | 08.28.20

New Business from Old Customers: How to Master Customer Retention

If you want to keep the money flowing, you’ll need a steady stream of new customers. It seems simple enough; however, there’s one mistake you don’t want to make. Don’t become so focused on bringing in new customers that you forget those old faces you haven’t seen in a while. Customer retention is essential.

While strategies may vary from industry to industry, the need for customer retention will never waver. The cost and efforts of retaining customers are less than the cost of acquiring new ones. Don’t believe us? Calculate your customer lifetime value and compare it to your customer acquisition cost.

Because current and past customers have already experienced your top-notch service, retention will be easier and more profitable. In fact, you have a 60-70% chance of selling to an old customer, and just a 5-20% chance of selling to a new prospect.

Finding new customers is 5 times more expensive than retaining old customers.

Keep Your Eye on the Customer

If you want to get your customers back through your door, look at what brought them in the first place. What are their buying patterns according to your analytics tools or CRM’s customer notes section? Use that data as the master key to targeting their interest.

Figure out what they might need. If a client came to your salon for a color job, use that to bring them back. Either it’s time for a touch-up or fun new color. Regardless of what service you pitch them, make sure to knock it out of the park.

Use an email marketing campaign to get them excited about new cut and color trends you’re staying on top of. We’ll let you in on a secret: they’ll probably try that suggestion of yours.

Current customers are actually 50% more likely to try new products. Not only that, but they’ll spend 31% more when compared to new customers. This is why we say, your best customers are your current customers — you’ve already won them over!

Turn One Star to Five

89% of companies see customer experience as a key factor in driving customer loyalty and retention, which means your customer support team is in the driver’s seat. Their ability to quickly solve problems and provide suggestions has direct influence over your customers’ view of your business. Use that for the tool it is.

Consider retargeting old customers who may have left your business over a bad experience. If they were unhappy with your product or service, take a moment to accept responsibility — even if you’re not to blame. Rectifying the situation can turn that one-star reviewer to a five-star repeat customer.

Be sure you are checking your reviews regularly and responding quickly to both positive and negative reviews. Need some tips? Check out this article: Respond to Negative Reviews Online in 6 Steps.

You may even consider a phone call or face-to-face meeting (socially distanced, of course). Taking the time to work directly with the customer to find the solution can make a world of difference. It builds trust with the customer as well as brand recognition.

Can you imagine a churned customer sharing with their circle that they’ve returned to your business? Now that’s making a name for yourself.

Keep it Constant

Regular communication will help your customers feel more like family. You cannot go wrong with newsletters, social media activity and especially text messages. There no secret as to why. Our phones have become another member of our body.

A not-so-shocking 98% of text messages are opened regularly. That’s the prime reason 58% of marketers use mobile messaging as a means of maintaining their customers. Email marketing is used nearly as often. Finding an end-to-end client experience platform to automate these campaigns is a time-saver.

Thryv makes consistency simple:

  • Integrate Text and email marketing automation to send out campaigns to both channels.
  • Store client information and message history in one location.
  • Book & Sell more with a compelling call to actions in every message.

Keeping clients informed about the moves your business is making in their inbox could easily land you more loyal customers. Existing customers become amazing salespeople, especially when there’s an ad to forward over. You’ll be building rapport, which produces customer loyalty and further increases customer retention.

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