Why Client Retention is So Important to Your Business

Posted by chucktrautman on April 23, 2020

While many companies focus on acquiring customers, most do not do anything to retain them. Many owners do not see the need to spend time, effort and money to retain the customers. They usually ask why they need to put effort in customer retention when they are already acquiring new ones successfully. While this may sound logical, it is unfortunately a wrong thought that can lead to business loss or even failure. It is just as important to keep customers as it is to find them. The question people would ask though is why put effort in customer retention?

No Acquisition Cost – It takes money, time and effort to acquire new customers. The expense needed depends on your industry, the number of competition that you have and the type of advertisement you plan to have. Your expense can range anywhere from several cents to several thousands of dollars, and you can spend hours or days in doing so. Retaining old customers does not require the cost needed to acquire them, so you can actually save more money. To simply put things, it costs five times more money to get a new customer than keeping a new one.

The Art of Repurchasing – Studies show that customers who have already bought from your business have a much higher chance of buying from you again.

Word Of Mouth – Customers who are happy with any service are more likely to recommend the service to other people. This benefit is perhaps one of the most economic and efficient way for others to find out about your business and acquire new customers, too

With these in mind, you can really say that customer retention is worth the effort. So, instead of just taking time to win new ones, take the time to keep the old ones, too.

Consistency Counts

Posted by chucktrautman on April 16, 2020

When you define who you are and create your mission statement, you have to promote it – everywhere and on everything – in order to build your brand. Simply put: wherever you put your name, you should include your brand, consistently.

But promoting your brand isn’t enough – you have to back it up with consistent quality. If you’re not delivering quality every time to every customer, your brand is never going to gain traction. To top it off, the bad word-of-mouth advertising will come into play.

Credibility, just like quality, also contributes to your brand. Your credibility is built on your track record – you can’t make it up. You can have the slickest marketing materials in the world, but you won’t grow your business without credibility.

With social media a force to be reckoned with when it comes to doing business online, you have to make certain that you are delivering what you say you’ll deliver in order to reduce negative comments. Take it one step further: exceed your customer’s expectations at every turn.

Consistently communicate what you stand for. Your values, and those that your company embraces, are part of the equation. People will do business with you and spend more money with you because they know , like and trust you. But if people can’t align with what you stand for, this isn’t going to be the case.

Be consistent. Consistent with delivering a quality product, consistent in your marketing efforts and consistent in communicating your beliefs – and you will soon be on your way to enjoying consistent profits.

Don’t “Pre-Judge!”

Posted by chucktrautman on April 9, 2020

Don’t “pre-judge” outcomes when trying something different in your business. Failing to try something because you somehow “know” in advance that it won’t work will very likely cost you some great opportunities to boost your profits. Not saying you don’t trust your gut or intuition, but there is an evil force called resistance and it shows up in strange places and stops forward progress. Once in a while, you have to just have faith and take the shot!

The Simple and Easy Way to Engage, Enlighten, Entertain, and Profit from New and Current Customers!

Using video as a powerful marketing tool isn’t as difficult as you might think and there’s nothing more powerful than video to help create a connection with a customer or prospect. It is the ultimate secret weapon in winning the “know, like, and trust” battle! And by every measure, video isn’t going away. In fact, it’s rapidly gaining in popularity for several reasons.

One of the smartest investments you can make for your small business, regardless of your industry, is to create video content. Video gives a unique glimpse into your business that written content alone can’t give. This isn’t to say that you should steer away from writing content, as in a blog, but video can take your content to the next level.

Stay Focused on the Needs of Your Visitors (What’s Important to Them)

Everyone surfs the web differently. Some are happy to read page after page of content, while others need to be more visually stimulated through a combination of text, photos and video.

Adding video content helps to put your company in front of your web visitors, allowing you to connect with them in a more personal way. Video lets you make eye contact with your visitors, putting your customers and potential customers at ease, which helps create that all-important connection that, in turn, allows you to gain their trust.

Successful business is more than just about the “hard sale” – it’s about personal connections because without them, there is no sale. With an added video element to your website or blog, it’s easier than ever to make those personal connections. Prospective clients can get a good ‘read’ on you and make a much more informed (and often faster) decision about your products or services.

A “Fastest Way To Higher Profits” Moment!
Your Skill Isn’t Typical

I believe we’re all blessed with God-given talents and skills. The most successful entrepreneurs are those fortunate enough to figure out how to use their talents and skills in their businesses, combined with a passion for serving others and the knowledge of what their abilities are worth.

I believe many people’s profit problem is two-fold. It often starts at the beginning when entrepreneurs are cash-starved and offer their products and services for lower prices than they should. Next, even if they raise their prices over time, the next problem happens when these entrepreneurs work within their areas of expertise for so long that their talents and skills become commonplace . . . to them.

Think about the first time you learned to drive a car. For me, I learned on a stick shift, and boy, did it seem complicated! I had to try to balance applying the right amount of gas while letting out the clutch, and of course, there was a lot of bucking and jerking. Plus, I had to keep my eyes on the road and monitor the rearview mirrors, operate the turn signals, turn the wheel, and concentrate really hard.

Today, it’s second nature because I’ve been doing it for so long. I can jump in the car and drive, carrying out these multiple duties without even thinking about them.

I’m going to say something to you now that should change your whole perspective about pricing: You are not your average customer!

What it means is that your customers don’t know what you know. You must evaluate the product or service you provide as an end result benefit and what pain it cures, or what joy it brings to your customer, and then set your pricing based on that.

Another “Fastest Way To Higher Profits” Moment!
All Customers Are Not Created Equal

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.

6 Client Retention Ideas You Can Try

Posted by chucktrautman on April 2, 2020

Most companies focus on acquiring new clients, and while this is a primary focus, client retention is just as important. In fact, working hard to keep your old clients may even be more profitable than getting new clients in the long run.

Why Focus On Client Retention?

Client retention is measured in repeat purchases, and has a big role in driving profits to your business. It is important in many ways. Old customers mean you no longer need to spend for acquisition.

Another reason is that you can focus on what you do best – which is selling your product and serving your customers. Lastly, having long term customers mean getting to know them in the long run – you will know what they need, what they like and what they do not, helping you improve your service as you go.

Some Client Retention Tips

It is good to note that while some customers willingly go back and make a second purchase, most clients need to be pursued in a way. That said, getting customers to buy the second time around needs a little bit of work in order to succeed. Here are some tips that you can try to improve your client retention levels.

  1. Serve With A Smile – The old adage, “the customer is always right” still applies if you want to keep customers coming back to you. Most distraught customers seek attention through emotional outbursts, and the best thing you can do as a business owner is to take things calmly and stay in control. Smile while doing what you can to appease your customer’s frustrations.
  2. Proactively Stay In Touch – Consider giving your top customers a call to proactively follow things up. Giving them a quick call adds a personal touch to your business and gives the impression that you care as a business owner. A personalized email can also do the trick.
  3. Just Ask – Take the time to collect feedback from your clients. Your company website, some comment cards inside your store, e-mails and your company’s Facebook page or Twitter account are great channels of communication.
  4. Continue Marketing – Remember that your current customers have already done business with you and are more likely to do business with you again. Focus your resources, efforts and time to better serve your current customers.
  5. Start A Loyalty Program – People love gifts or free services, making loyalty programs an effective strategy for customer retention.
  6. Solve Problems Right Away – A study done by TARP Worldwide, a leading customer experience agency shows that 95% of customers who have registered a complaint will most likely buy again if their complaint was quickly resolved.

Excellent service always results to high customer satisfaction, which definitely translates to customer loyalty. So go ahead and follow these six customer service tips to effectively impress your clients and retain them for a long, long time.

You’re Gonna Need a Bigger Boat

Posted by chucktrautman on March 26, 2020

I love actor Roy Scheider’s line in the movie Jaws, “We’re gonna need a bigger boat!” His character threw large chunks of bait into the water to lure the great white. His eyes went round when he saw what his efforts had produced. Reel customers in to your business with an equally effective bait: Testimonials. When used right, testimonials can be a key factor in reeling in a boatload of new customers.

Getting and using testimonials is one of the best ways to share the message about how great your product or service is. In fact, marketing guru Dan Kennedy says (I’ll paraphrase) that a poorly written but honest testimonial about your company will produce sales infinitely better than the most perfectly crafted sales letter from your marketing department. The latter is you talking about how great you are; the testimonials come from real customers.

Customers relate to like-minded people who promote your company. So how do you get testimonials? You ask.

Some folks are a bit shy about asking for testimonials. If you fall into that category, let me give you my blunt response: Get over it. You’re in business, and testimonials are one of the greatest ways to grow your sales and profits. Asking for a testimonial during the “honeymoon” phase in a customer relationship is almost always a sure bet that you’ll get one.

The best time to ask is after an initial positive transaction, or after you’ve successfully solved your customer’s problem and alleviated his or her pain. Acquiring testimonials happens at many different levels. It can appear in your e-mail signature lines, or on every single item you send to your clients. A sentence as simple as “A customer referral is our greatest compliment” works. Or “We love testimonials; tell us how we’re doing.”

Customer-service-based testimonials are extremely effective at helping to increase prospective customers’ comfort level when considering doing business with your company.