The Value of Retaining Your Current Customers
Updated: Mar 24, 2021
Many businesses put a lot of time, money, and effort into chasing new customers. Although this is a key component to the growth of any business, it is absolutely vital that you do not underestimate the need to retain your current customers.
Remember all of the hard work and effort you put into earning their trust? Investing resources into strengthening current customer relationships will provide long-term, repeat business. This is an essential marketing effort.
As I think back on this profoundly unique year, I can’t help but see the tremendous benefit my practice enjoyed through key client retention. I am grateful for my current clients and the on-going trust and value they place in me. This realization helps underscore a key truth of business; you cannot grow and remain in business without keeping the customers you currently have.
Here’s something else to consider: it is easier and less expensive to ensure that current customers are satisfied than it is to pursue new ones. Various studies suggest that the time and cost range can be between five and eight times. If cultivated properly, existing clients can contribute to the bulk of your company's future profits. Taking this into consideration, keeping the customers you have is not just a strategy for revenue retention--it is a strategy for revenue growth.
A meaningful customer retention strategy needs to start with establishing a better understanding of your customers so that you can continue to provide an excellent experience.
Many of us believe that we provide an exceptional customer experience, but do you actually know what your customers' perceptions are of that experience?
Challenge yourself and your team to:
• Communicate often with your customers.
• Continually strive to understand their needs.
• Learn why they buy from you.
• Listen to what they consider valuable.
• Understand why they come back.
Stop thinking of customers as a one-time transaction. Whether it is directly (repurchase) or indirectly (a referral), existing customers provide lifetime value.
Pay attention to your current customers.
Provide them resources, value and solutions. Keep them informed, involved and inspired to continue doing business with you.
There is tremendous growth potential in keeping what you have.
Wishing you continued success!
James Pagano Business Performance Coach