Though it is a well known fact that retention of customers is much more profitable than constantly trying to find new ones, people find it challenging to give it the attention it deserves simply because it means a lot of hard work and persistence. Here are some keys to make things easier.

a) You need to develop a strategy

You need to ask yourself whether you have a definite plan to develop customer allegiance as without a plan, it would be difficult.

It is very likely that this has escaped your attention as it has mine.

If your plan is to hold on to 70% of your customer base then it is time that you embark on a program that will help you to take it up to 80% and that way, you are sure to grow by at least 10%.

This is relevant as a business strategy because of the increased costs of getting new customers as opposed to the quite high profit margins you would enjoy from a captive set of customers who have been with you for some time.

You should concentrate upon the four aspects given below. They will dictate your ability to develop a customer base that will not desert you.
1. Developing products that stand out from competition.
2. Developing products that are perceived to be of value and where the price is not the sole influencing factor.
3. Developing products that also have a high degree of service commitment.
4. Developing a variety of products that can be sold to the same client.

b) Conceive a marketing plan targeting your customers

You must come out with focused marketing initiatives that have your current customers on its radar. Take the example of the purchase of a new vehicle. You will notice that having sold you the car, the dealer will try to sell other products such as extended warranty program, a good audio system, alarm system and even any antirust coating services. The dealer does that because he knows that is a relatively easy task as compared to selling them to a brand new customer.

Let me give you another example. I painted my house three years back and though it is time for a recoat, I am surprised that the earlier painter has not bothered to give me a call or send any communication. It would have been far less costly for him to get me to agree having availed of his services instead of trying to get hold of a new customer. Therefore, hold on to all information about your existing customers and do not be shy to ask for repeat business.

c) Utilize the complaints you get to develop customer trust

It is a fact that when customers are angry or irate, they rarely complain about it to the company that is causing them the distress, but will tell other people and spread bad word of mouth publicity. They will then move their business to your competitor. It is for this reason that companies are investing time, money and effort in trying to get positive feedback from their customers through follow up calls or by sending customer satisfaction mailers. They know that if they can solve a problem the minute it surfaces, the customer will be happy and won’t leave them. In fact, that is why it pays to solve a customer’s complaint quickly and win his loyalty for a long time.

The normal trend is that customers engage with other departments of the company such as the customer service, technical post the sale and if you are really focused about holding on to the customers, then you must view these interactions and give them great importance as the manner in which they are conducted will influence any repeat business from those customers.

d) Establish contact with your customers

The basic mantra is regular contact and communication with customers. You need to keep visiting or talking to your customers as often as you can so that you are visible to him and he cannot think beyond you to place the next order. Develop this rapport by sending greeting cards, meeting them at exhibitions, paying them a visit and so on.

You can also send them newsletters informing them about anything new you have to offer them or any newspaper and print media clippings mentioning your company. As you feed them with more news about your company, they begin to see in you somebody they can trust and therefore will not go away from you.

e) Loyal employees and loyal customers go hand in hand

It is a fact that your efforts to hold on to your customers will get a big boost if you can manage to hold on to your employees. Remember, these are the people from various departments such as sales, customer service, technical who keep interacting with customers and when you have them leaving regularly, customers also start feeling insecure about the company. Customers often get used to specific customer service or sales personnel and continue their patronage only because of these people.

Some companies have started the practice of putting customer service and other technical calls into the queue and that can be risky as it does little to promote customer loyalty. So exercise caution and know what your customers prefer before going down that road. It is better to stick to a dedicated team of personnel handling some of your top notch customers so that they know they will always be responded to on time and there is consistency. This also makes them believe you really care about their business.

One final point – Never indicate to your customers that the 800 line number is only for booking sales.