We know it’s impossible to keep up with all of the news in the local business space. That’s why we’ve cherry-picked the articles from this week that matter most for business owners like you.
[Customer Retention] 3 Ways to Increase Customer Retention, Boost Profits
Small businesses sink or swim based on their ability to keep customers coming back. One-time visits are nice, but customers are only as good as their lifetime value. According to a report by the Harvard Business Review/Bain & Company, a 5% increase in customer retention can increase business profits anywhere between 25% and 95% — considering that the goal of a business is to make money, retaining customers is critically important.
Here are three customer retention tips to help you increase revenue and improve your marketing strategy:
- Know Your Customers. Adopt strategies to engage customers and prospects with communications that are relevant to them and their business. Create customer profiles so that you can target your customers with messaging that's tied to their wants and needs.
- Develop Opportunities to Engage. Take time to learn what your customers are looking for. What do they expect from your business? Take that information and create authentic and powerful opportunities to engage with your brand or product.
- Prioritize Personalization Strategies and Technology. Invest in technology that allows you to deliver a high level of personalization and relevance that drives customer engagement and retention.
Why It Matters: A high retention rate is one of the clearest indicators of a healthy business. Implement strategies to learn your customers better in order to develop and deliver the content that they want. Once customers begin actively engaging with your brand, they are way more likely to come back. Increase revenue the easy way by retaining your customers!
[Customer Service] Using Customer Service for Retention and Renewals
Source: Small Business Trends
In order to keep customers coming back, marketing isn't the only solution. Don't overlook customers service! As a local business, a positive customer experience can be the difference between a customer coming back to you or taking their business elsewhere.
These four tips will help your customer service act as a tool for retention and renewals:
- Track customer retention rates.
- Focus on what's important to existing customers.
- Make sure employees are satisfied.
- Share feedback with employees.
Why It Matters: In order to retain customers, a business must make customer retention a pillar of day-to-day business. It's a mindset that's necessary from sales to marketing to customer service. Understand what you do. Understand what your customers want. Deliver what they want, and continue to deliver what they want with a smile on your face. Part of that is customer profiling, and part of that is training your staff well and keeping them satisfied so they can project that excitement and satisfaction for the business to your customers with a complete knowledge of your product or service.
[Email Marketing] Emailing With the Customer in Mind
Source: Direct Marketing News
When email marketing first became popular, businesses became infatuated with sending out mass emails to their customers because of the low-cost, high-return simplicity of email. However, nowadays customers don't stand for mass emails. Customers want true personalization, or there's a very high chance that they delete your email without reading it. When it comes to email marketing — always remember: relevance is king!
Here are three ways that you can keep your email marketing relevant to your customers and, in turn, keep them coming back to your business:
- Customer Data. Or more simply put: know your customers. This can't be stressed enough — use data and analytics (if you don't have data, invest in technology that gives it to you) to know who your customers are, what content they're looking at, what they're expecting from your business, etc. Then implement strategies to be where they are and to meet their expectations.
- Loyalty Rewards. Email marketing is still number one in regards to ROI. But you're only going to get a return on your investment if you're offering the customer something that makes them want to read the email. Offer early bird specials or exclusive discounts to dissuade your customers from taking their business to a competitor.
- The Unsubscribe Button. It may seem counter-intuitive, but an unsubscribe button is beneficial to both you and your customer. They can stop receiving emails that they don't want, and you can ensure a tighter, cleaner list so that your ROI is higher with customers that actually want to hear from you.
Why It Matters: Develop a strong email marketing strategy or you risk missing out on the most cost-effective way to reach your customers. Keep your emails relevant to the customer based off the information you gleaned through data, offer them rewards to keep them excited and coming back, and don't forget to add a one-step unsubscribe button to keep your email list as (you guessed it) relevant as possible!
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