If you ask anyone owning towing service in Cape Coral or any business, they will tell you their number one goal is growth. The key to business growth is acquiring customers, having a low churn rate, and keeping a consistent and growing revenue. However, the process of identifying, qualifying, and nurturing leads, and hopefully converting them into customers requires significant resources and getting your strategies right.
Instead of focusing on always acquiring new customers, it is important to ensure you invest your time and resources in retaining your high value existing customers. There are a couple of factors that will make your business unique, including the nature of the industry you are involved in, the size of your business, current brand awareness, relevance, among others. All of these factors will determine the cost of acquiring new customers.
Why Customer Retention
There are a lot of benefits associated with customer retention. You should know that about 20 percent of your customers produce 80 percent of your sales. Additionally, repeat purchasers spend more and normally generate larger transactions. They are also able to refer more people and bring more business. Customer retention is the basis of customer loyalty, and loyal customers are a powerful word of mouth marketers for your business.
Here are a couple of ways to boost your customer retention rate.
Adjust pricing for returning customer
You need to adjust your pricing in a way that makes it easy for returning customers to conduct more business with you. You can offer customers discounts via emails for their next purchases. You can also offer free shipping and returns as well as additional price-related perks for your most frequent shoppers. You can also think of a cost-effective subscription model for your business.
Implement cross-selling and up-selling
You should ensure you have strategies in place that promote cross-selling and up-selling. Customers should always check in with something extra while doing their shopping. You can up-sell customers in a physical store by placing related products next to each other and drawing the right attention to attract impulse purchases. For online shoppers, always include frequently bought together items next to any product they purchase.
Have a customer loyalty program
You need to have a customer loyalty program in place to reward your most loyal customers and build existing relationships. You can email your top 10 percent, customers, about a special offer you might have for them. The key to an effective loyalty program is testing and fine-tuning from the results you get from your experimentation data. You can expand your program by adding a points system to allows customers to earn points for purchases they make and social shares.
Meet your customers where they are
You will be able to deliver better according to customer expectations if you know the ins and outs of your customers, as well as meeting them at the places they like to visit online. Ensure your content creation program is on point and can resonate with what your readers want to see. Post your content on social platforms your customers like to hang around.