It can be easy in this day and age to ignore customer retention strategies and focus on customer acquisition instead. Many businesses fall into the trap of putting most of their effort into luring new customers and ignoring the essential task of developing strategies to retain customers.
As you will already know, keeping customers can be difficult in this age of choices. It becomes almost impossible when you are dividing efforts in order to keep up with competitors and come up with solid customer retention strategies.
We’re here to help!
There are some common “unforced errors” that business owners commit that lead to customers heading for the door. We’re going to delve into these mistakes so you can be aware of them and increase customer loyalty and retention.
Here are some of the most common ways that will ensure you lose customers quickly.
How to lose your customers
1. Not rewarding loyalty
Everywhere you look, there are exclusive deals and discounts for new customers – the sign-on bonus, the first-year deal, new phone with your new account, etc. The thing is, many people will take advantage of this, then move on to another competitor to receive another ‘new customer deal.’ The general focus seems to be on attracting customers, yet not rewarding customers all but guarantees they will move on to another business.
Many businesses miss the trick of rewarding loyalty. It’s a good practice to say thanks to long-term customers and make them feel appreciated. Did you know that loyal customers spend 33% more than new clients?
This is one of our most suggested customer retention examples. It can be something as simple as offering free delivery, small discounts, exclusive products, or even just a simple thank you email or giving them help and advice in an email. Be thankful for the trust that your customers have put in your service, and communicate that to them.
One way we help you reward customer loyalty is making it easy to send cards and gifts! Why not send a thank you or happy customer anniversary?
2. Being closed off to feedback
It can be hard to take criticism when you’ve put so much work and effort into your business. After building something from scratch, it’s common for owners to have some sort of “tunnel-vision” and miss blind spots. Now is not the time to be “thin-skinned” and ignore or argue with a customer being critical of your product.
The truth is, nothing really is perfect. Even some of the longest-standing companies out there still have areas to improve. As you gain more customers, there is more opportunity to spot holes or weak areas you can improve upon. Continuous development is key to staying ahead of the curve and keeping your customers happy.
The best way to find the areas you need to improve on is straight from the people who are using your product or service.
So make sure you regularly ask for feedback from customers and that you have strategies in place to review and make plans to implement it.
3. Ignoring Social Media Channels
Not making use of social media is a sure-fire way to lose customers. Social media is a necessary tool for retaining customers these days.
Many people use social media as their primary method of researching a company and engaging with brands. You could be missing out on crucial feedback and unfiltered views that your customers are posting on social media.
Most people would much rather send a DM than log into their online account and wait for an online chat agent to get in touch with them.
4. Being oblivious to customer behavior
This is one of the customer retention strategies that business owners overlook the most.
Not understanding your customers and why or how they are using your service is another great way to screw up customer retention.
Once you understand why your customers came to you in the first place, you’ll get a clear insight into how your customers think, and you can optimize your customer experience to suit their needs.
5. Maintaining a shoddy website
Another essential aspect people miss from their customer retention programs is not developing a good website. 75% of customers say they judge a business’s credibility based on their web design.
A poor website gives the impression that you haven’t invested in your business and will lower the trust customers have in you.
By doing this, you’ll leave your customers with the memory of an enjoyable experience and increase the chances of them using you again.
Final thoughts
There are lots of common mistakes businesses make that cause them to lose customers quickly.
By having robust customer retention strategies, you won’t be losing your loyal customers. If you reward loyalty, are receptive to feedback, use social media, keep track of customer data, and create a great website, you’ll increase customer loyalty.
It might be a simplistic idea, but treat your customers like people and they will notice. Showing your customers that you appreciate them is easy to do, and you’ll see they’ll reward you with loyalty in return.
Now that you’re aware of these common mistakes, make sure you don’t fall into these traps that cause you to lose customers. Do the opposite of these and you’ll set yourself up for success!
Resources
https://themanifest.com/business-services/resources/how-avoid-8-most-common-customer-retention-mistakes
https://rockcontent.com/blog/customer-retention/
https://www.omniconvert.com/blog/6-customer-retention-mistakes-how-to-avoid-them/
https://blog.hubspot.com/service/customer-retention-strategies
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