In this world of business, it is always less expensive to keep a current customer than attract a new one. Our goal is not to get a wide array of people spending a little bit of money, but to convince a select community of people to spend a lot of money.
Every business is like a cup with a hole in its bottom. No matter how much water you add, the cup will always leak. Entrepreneurs must find ways to plug their leaks as much as possible while consistently adding water. Now question yourself, “How fast are you losing existing customers?” Since your tracking your analytics, then you already know the answer to this by looking at your customer attrition and retention rates. Once you are done, Now find out what is causing the leak.
Once you know how big your leak is and why the leaks are occurring, here are two steps for increasing customer retention:
1. Empathize: Before rushing on to fix an issue, make sure you listen to what your customer has to say. After hearing them out, verbally agree with them. Always make sure your customer knows that you feel what they feel.
2. Offer Incentives: If the customer still decides to leave even after you’ve worked to resolve their problem, sweeten the deal. Ask the open-ended question, “What can we do to retain your business?” If they can’t think of an answer, then begin offering options. An angry customer turned into a ravel fan often is more loyal than ever before. If you shrug off the upset customers, you’re going to miss out on revenue.
Work hard to solve problems and increase customer retention, and you’ll find, your cup will be overflown.