Customer Retention versus Acquisition: 6 Key Points to Remember

Posted by chucktrautman on May 25, 2017

It’s far easier, and much more cost-effective, to keep the customers you have rather than trying to attract new ones. It’s also much more profitable. Use these six key points when you feel the need to acquire new customers:

  1. It’s easier and more cost-effective to plug the holes in your system than it is to constantly look for new customers.
  2. Remember the 80/20 Rule: 80% of your profits come from 20% of your customers!
  3. There are only two ways to grow your business: get more customers or sell more to the ones you already have.
  4. The longer they are your customers, the more likely they are to spend more with you and refer new customers.
  5. Remember that a 1% increase in customer retention generates a 7% increase in profits!
  6. It’s five times more costly to acquire new customers than to grow the ones you already have.

Proper Timing

Posted by chucktrautman on May 18, 2017

The best time to ask your up-sell / cross-sell question is AFTER the customer has committed to the initial purchase, but just before they pay for their purchase. Once they commit they’re instantly in a purchase mindset. But after they pay for their purchase, they have mentally closed the transaction.

A ‘Stick Like Glue” Moment! Customer Referral Programs

Posted by chucktrautman on May 11, 2017

When you create your customer referral program, keep in mind that you’ve got to make it worth your customer’s time to participate. Unfortunately, many entrepreneurs are too cheap when it comes to their referral programs. Let me be clear, offering your customers a 10 percent discount on a future purchase is about as exciting as watching paint dry; it’s not going to do the job!

All Customers Are Not Created Equal

Posted by chucktrautman on May 4, 2017

All customers are not created equal. And while it’s likely that 80 percent of your profits come from 20 percent of your customers, you should segment your customer list even further to create and market specific programs appropriately to each group depending on their needs and buying habits.

Retention Made Easy

Posted by chucktrautman on April 27, 2017

The key to building great relationships and retaining customers is incredibly simple: Over-the-top customer service!

In order for your customers to love you, you have to love them first. If your customers are not the most important part of your business, you’re missing the only opportunity you really have to explode your business and boost your profits. How you feel about your customers comes through loud and clear at every touch point you have with them.

Be easy to do business with – answer phone calls quickly and politely. In this day and age of technology, a live person answering the phone will quickly set you apart and it shows how you care about your customers’ time.

The same goes for your website. Make it easy to navigate. If you are getting complaints about any aspect of your site’s navigation – listen and fix it!

Another great way to improve retention is to be accessible to your customers. Talk to them in person. Yes, automated responses have their place, but nothing takes the place of a personal conversation – especially when you are building trust and developing relationships with your customers.

This is especially true if your business is strictly Internet based. With the plethora of Internet scams we hear about every day, you want to avoid having your business being lumped into that area. Your accessibility goes a long way to let your customers know you care about them.

Finally, under-promise and over-deliver. Customer satisfaction and ultimately retention is all about meeting expectations. You can really develop over-the-top customer service by exceeding, not just meeting, your customers’ expectations.