On average, a business loses up to 20% of its customers annually (for some it is as high as 80%). Do you fully understand how much ‘value’ is lost to your business by losing customers?
Well, imagine two businesses, one that retains 90% of its customers, the other retains 80%.
Over seven years, the first firm will virtually double, while the second will have no real growth. Everything else being equal, that 10% advantage in customer retention will result in a doubling of customers every seven years without doing anything else.
Keeping in regular contact with your customers will help you to build a one-on-one relationship with them.
To do this you need an active database of customers with up to date contact details. Do you have such a database – and do you use it to maintain contact with your customers? It will allow you to notify your customers of specials or up and coming events and possibly re-activate customers who may not have purchased from your business for a period of time.
Social media has a role to play and it sorrows me to see how misused it can be as a marketing tool. I receive loads of tweets, blogs, ‘likes’ and requests to become a ‘friend’ from complete strangers in what are often thinly disguised sales plugs. Used thoughtfully, social media can be a great way to keep up to date with your existing customers who are far more likely to read items from people they know.
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