As a youngster, you might have heard, “make new friends, but keep the old. One is silver, and the other’s gold.” Substitute the word friend with customer, and the same rings true. Retaining customers is a very important part of business and a wise investment if you want to watch your business continue to grow.
Returning customers give you the opportunity to provide ongoing value, develop more personalized relationships, create brand advocates, gain referrals and earn positive word-of-mouth marketing. In addition, research shows that 68% of new customers come from current ones, making it a smart move for your customers and your bottom line to keep current customers coming back.
We’re not insinuating that growing new customers isn’t important. However, it is important to invest in the current customer base that typically will spend 67% more than new customers. And it costs 16 times more to drum up new customers than it does to keep a repeat customer. Here are four ways you can invest wisely in those golden repeat customers.
Customer Outreach
Regardless of if you use a quick phone call, text or email, be sure to communicate with your customers on a regular basis. Your time can be the lowest cost investment you make to retain a customer. Keep track of their orders, and if you notice it has been a while since they ordered a particular product, give them a call. Perhaps their daughter scored the winning basket at last Friday’s basketball game, so start the conversation with a congratulations, and then move into asking if they were running low on VitaFerm® Concept•Aid® since you know they are preparing for calving season. Customer outreach is vital to retaining customers; it lets them know you care and that you really are keeping up on their program.
Customer Appreciation
Everyone enjoys being shown some appreciation and that includes your valued repeat customers. If you are hosting a customer appreciation event like an open house or an anniversary sale, be sure your local customers are aware of any promotions or sales. Provide them with a chance to come into your store, visit, shop and take advantage of any appreciation that you are showing. It will make a difference in their return.
Customer Service
Retaining customers in not always about providing the best products at the best price. It might also be about providing the best services. Perhaps they can get the same products at a neighboring town, but you stay open later to serve those who have 8 to 5 jobs. Maybe the customer likes that you help load the product into their truck, whereas your competitor just expects the customer to load the product into
their own truck. Service, both large and small, adds up and means something to the customer.
Loyalty Programs
Now, it probably doesn’t make sense to have a “punch card” for a mineral program; however, if you have a customer who is buying large quantities of product from you, you might want to show some appreciation in some form. Perhaps with every pallet, they get some swag, or some Vita Charge® Gel or a percentage off their next pallet. For every customer they refer that purchases a certain amount, they could receive a new cap and pair of gloves. Loyalty matters and rewarding loyalty will keep your customers returning and spending money with you.
Yes, investing time and money in your golden or current customers will pay in the long-term. One online article said that 80% of future profits come from 20% of current customers. Retain your current customers, and watch your business grow.
