Keep Your Customers From Straying

April 30, 2010 · Filed Under Client Retention · Comment 

During uncertain economic times, people are cautious where they spend their money. When they do decide to open their checkbooks, you want to be their first choice. Therefore, it’s important your current customers choose to stay with you. Even if your business is doing well, your customers can leave as quickly as they came.

There’s more to business than just a transaction. Building a relationship helps you establish a bond. Some customers are even willing to pay more for a product and/or service if they have a personal connection with a company. From a PR perspective, building relationships is cost-effective because the only cost is your time.

Here are eight ways to invest in these relationships:

1.  Touch base frequently. If they recently placed an order or you provided a service, ask them for Read more


How to Successfully Build Customer Loyalty

August 4, 2008 · Filed Under Client Retention · Comment 

By: R.l. Fielding

In today’s competitive marketplace the race to increase profits by cultivating customer loyalty is going at full speed. Customer retention is not only a cost-effective and profitable strategy, it is a necessity for businesses wanting to stay ahead of the pack.

As consumers are spending less thanks to soaring fuel and food costs, companies are more reliant than ever on the loyalty of a dedicated customer base to maintain a competitive advantage. Following the Pareto Principle, 80% of your sales come from 20% of your customers, and in a recession the numbers are closer to 95% and 5%, says Ajit Maira, senior vice president of the Information Technology Services Marketing Association. Since these returning customers cost less to reach, are less vulnerable to ploys from the competition and buy more over time, companies need to give customers an incentive not to go elsewhere for the same product or service.

One of the most successful ways to achieve this cost-effective retention is through the use of customer loyalty reward programs. By rewarding the ongoing purchase of product or services, companies achieve long-term relationships with customers. With a variety of loyalty programs available to companies, the key is discovering what works best for your needs and goals.

Build a Strong Foundation Read more


Benefits of Customer Retention: Statistics

August 3, 2008 · Filed Under Client Retention · Comment 

Benefits of Customer Retention: Statistics

1. Acquiring new customers can cost five times more than satisfying and retaining current customers

2. A 2% increase in customer retention has the same effect on profits as cutting costs by 10%

3. The average company loses 10% of its customers each year

4. A 5% reduction in customer defection rate can increase profits by 25-125%, depending on the industry

5. The customer profitability rate tends to increase over the life of a retained customer

6. Companies can boost profits anywhere from 25 to 125% by retaining merely 5% more existing customers.

7. Only one out of 25 dissatisfied customers will express dissatisfaction.

8. Happy customers tell 4 to 5 others of their positive experience. Dissatisfied customers tell 9 to 12 how bad it was.

9. Two-thirds of customers do not feel valued by those serving them.

Thanks for reading my blog. I appreciate you spending some of your valuable time with me today!

I specialize in creating customized marketing solutions for small business. Contact me at georgann at catchphrasemarketing dot com, or call me at 888-494-8445 to discuss how you can get more clients and increase profitability without increasing marketing expenses. Yes, you really CAN have it all!


Do You Really Aim To Please?

August 2, 2008 · Filed Under Client Retention · Comment 

Guerrillas know the importance of customer service. Often, with competitors offering identical products at comparable prices, the only thing that will set you apart is the human element. It was department store founder John Wanamaker who said “the customer is king.” Do you treat your customers like royalty? Does your staff?

Your employees and salespeople take their cue from you. If you establish a policy of bending over backwards to provide superb customer service, you’ll have a courteous and flexible staff. I’m not joking here. Flexibility is an essential component of your business policy. Obviously a small business can’t survive without procedures and policies. But it’s equally important to empower your employees to consider situations on an individual basis and make exceptions when necessary. If you are willing to see a customer as a unique individual in a specific predicament and adjust your policies accordingly, you will have a customer who feels special. Read more