Why Customer Retention is So Important To The Success of your Business

Gaining and keeping customers is vital to the success of most businesses. Many businesses focus on attracting new customers but fail to pay attention to their current customers. Not only will this cost more money, but it will decrease your customer base, since loyal customers provide repeat business and the best referrals you can get. Here’s why it’s so important to retain your customers.

 Attracting new customers can be extremely expensive, but retaining customers costs a fraction of the price. The price of ads and marketing can put a big dent in your budget. But the effort and cost of keeping customers is significantly less. Return customers will become more and more familiar with your product, which means less time spent on customer support as well.

Additionally, once a customer is a believer in your product, their spending will increase at your business. In order to retain customers, it’s important to pay attention to your customers’ orders and spend a little time to make sure that they are satisfied. They will trust your products and your expertise, which means that they will repeat their purchases, and they are much more likely to add other items or services to their order.

Returning customers are also the best sources of feedback! You believe in your company and your services or products, through and through. But every company has to listen to their clients. Return customers will know your services or products the best, giving you much needed feedback, which can increase your attraction and retention of future customers.

These are just a few of the great benefits in retaining customers. By building a solid base of loyal customers, you can grow your customer base steadily, instead of getting a large amount of customers who may not enjoy your product or service and providing negative feedback. After attracting customers, listen to their feedback and needs, then call upon them for customer surveys and referring their friends to your business.  It will be a win win situation for both of you!