According to research by Bain & Company, a 5% increase in customer retention produces
more than a 25% increase in profit. Aso, acquiring new customers can be more expensive than retaining old ones. A loyal customer brings in repeat business and thus more sales. No wonder customer loyalty should be a key focus area for small businesses.
Now let’s look at some ways that can help small businesses improve customer loyalty:
1. Rewards Systems
Having a well-established rewards system can bring in repeat customers. Small businesses can provide loyalty cards or point-system to build customer relations. Such systems will encourage customers to come back to your business instead of competitors. And the best part of such schemes is – the more the purchases the more the rewards.
2. Incentivizing Sales Team
The customer churn rate can be changed with the way you incentivize the sales team. Sales executives should be rewarded when they bring in customers that stick. Executives with high churn rate clients should be disincentivized. Such incentives will change the culture towards getting more loyal customers.
3. Getting Online
Becoming more accessible to customers can impact how they engage with you. Building a simple and fast website/application will improve customer experience and build a strong brand image. It will be easier for customers to interact with you and thus improve customer retention. Here’s how we can help you achieve this!
4. Engaging on social media
Social media has changed the way customers interact with businesses. Nowadays, feedbacks are received over social media and on a public domain. Companies communicate new product offerings or services first through social media. Thus, any business must get on Facebook, Twitter, Pinterest, etc. in this digital age. And keep up with all the new channels of social media that come up.
5. Customer Service
Improved customer service will build loyalty for your business. Chatbots have become an efficient tool to do just that. Firstly, they are available 24/7, thus eliminating a lot of human effort. Secondly, they can help reduce repetitive tasks and human error. Chatbots can transform customer experience and help retain them. We can help you build interactive chatbots for your business!