It doesn't matter where you're from or the size of your company, men and women business owners know how important it is to retain customers, as each loss to the competitor costs a lot. And if you assume that making up for that deficit with a new customer is simple, reevaluate. The cost of attracting a new customer can be five to seven times higher than maintaining a loyal one, as pointed out by marketing theorist Philip Kotler in the late 1990s.
Check out our article today to see how to retain customers ethically and effectively.
word of mouth marketing
Regardless of the market value of the business, word of mouth is a precious asset, as it is easily the most effective and reliable type of marketing out there.
But, after all, what is word of mouth and what does it have to do with customer loyalty? It is about taking advantage of people's power of influence, to indicate a service or product of the brand, emphasizing its qualities.
According to a survey by the Nielsen Institute, 92% of consumers surveyed around the world said they trust a referral from a friend or family member above all other advertising.
With social networks in play, word of mouth can have an even greater degree of amplitude, since publications from customers who are completely satisfied with your brand can reach people from the neighborhood, city, region and even the whole world.
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Always have a plan at hand.
The answer to the question of how to retain customers takes planning and a lot of work. On this path, there are three steps in particular that can guide you and help you build a solid relationship with the customer.
- Know your target audience well: to provide an excellent service, it is necessary to know perfectly the needs of the customers. In this way, when developing profiles of the target public and/or persona with the marketing team, it is possible to make technically based decisions, which will certainly contribute to the continuity of the customer.
- Qualify your leads: Once you've created the profiles, you'll want to get a system in place to qualify your leads. Qualified leads are those who fit your profile and want, in addition to being motivated, to do business with you or one of your competitors.
- Design your customer experience: by conquering the customer, the brand has a new challenge: to propose a largely satisfactory experience to him. So design his journey in a technical way. Thus, it will be possible to develop improvements in the products and even think of a new one, which will further strengthen the relationship with the customer.
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Manage customer expectations
Negative experiences happen, however, they are often due to the fact that expectations are not met. And worse, maybe they never occurred to you or that external factors, beyond your control, got in the way and frustrated the customer. To do so, use this method:
- 1st step: take advantage of social networks to talk to your customers and find out, as quickly as possible, what they expect from your product. Ask open-ended questions to listen and understand.
- 2nd step: The key to managing a new customer's or customer's expectations is to be thorough and honest about all terms, even those you deem to be moderately important prior to purchase.
- 3rd step: communicate well and frequently with the customer, especially in the case of complaints or service questions. Constructive criticism helps in brand growth.
Be honest in interactions with customers
Don't underestimate your audience, they feel it when they're just being used for profit. When they feel that way, they don't think twice about going to the competitor. The Know/Like/Trust (KLT) principle is also an important element in building a successful business, no matter the niche or business model.
Remember that sooner or later the truth always comes out. As a result, your company will only benefit from your commitment to integrity from the start.
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Treat the customer like royalty
Throw the first stone who never stopped being a customer of a brand after having a bad experience. According to a survey conducted by Accenture, 87% of customers think companies should do more to deliver more consistent experiences.
Another factor that gets worse with this is the reverse effect of word of mouth marketing discussed at the beginning of this article. Because, when having a bad experience, the former customer does not think twice about negatively criticizing the brand to a friend or family member.
An interesting way out of this is to add features or services without increasing the price, whenever possible, and make sure that it is something desired by your audience. And in case you think about increasing the value, double-check about it and let your customers know clearly.
There is no way to retain customers without listening to them
With social media, it's easier than ever to let customers know about news and promotions. However, in addition to issuing announcements, it is also necessary to listen to what they have to say, be it good or bad feedback. Don't disregard what the public thinks, it is the lifeblood of any business.
1st point: be humble, and instead of trying to come up with ready-made answers or figure out how to convince them how wrong they are, listen first.
2nd point: be open to change and if you understand that customers are really right, change and don't forget to give them credit. It will certainly be a win for the brand.
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Give customers solutions that fit their budget
Bolder entrepreneurs dream of winning over millions of loyal customers. But keep in mind that you can't do it all yourself, and you have to be smart about support.
Therefore, the ideal solution for your customer service needs is one that fits their budget, is easy for them to use, and also fits their core business system.
Learn to manage disruptive customers
Don't run away from responsibility. Disturbing customers and consumers can arise and it is necessary to know how to confront them, in an ethical, polite and obviously grounded way. One of the ways that can help you with this is the creation of a customer service policy based on the core values of the brand.
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The maxim “the customer is always right” is not true
At no time was the phrase “the customer is always right” mentioned.
There is no reason for that. Sometimes the consumer is not only wrong, but he crosses the line. There are no excuses for abusive behavior.
Set clear boundaries for customer support. There is no requirement that you have to accept being abused or harassed, and it goes without saying that you must never let employees abuse or harass you.
The customer is, however, human. Keeping this in mind can help you develop and communicate empathy, which can quickly pacify disgruntled customers.
Be open, be honest and look for feedback. Be prepared to act on customer feedback as soon as you are aware of it.
