What are the Best Customer Retention Strategies?

Customer retention strategies are some of the most important tools in business in order to keep existing customers coming back to a business. It costs more in advertising and marketing to attract a new customer than it does to keep an old customer happy, and this is something that companies often forget. One of the best customer retention strategies is to provide excellent customer service.

Excellent customer service can mean a number of different things, but it generally involves treating customers politely and with respect, resolving any issues they may have quickly and efficiently, greeting them by name when they come into the business if possible, and making sure their experience in the business is a positive one. It is also important to allow customers the opportunity to provide feedback to the business regarding their shopping experience, either through phone or mail surveys.

Of course, customer service is only one of the best customer retention strategies, and it applies more to retail establishments. Other types of companies who deal with clients individually will want to practice different customer retention strategies. For instance, be sure to stay in touch with customers who have worked with the business in the past; place phone calls or send emails to remind them of the company's presence. Targeting advertising to customers who have shopped with the company before can also be very effective; some companies find that sending newsletters to customers is a great way to retain customers.

One might also choose to send good deals to current customers. These might be a discount on a purchase, an extra gift included with a purchase, or a small gesture to let the customer know that his or her business is appreciated. This is one of the more effective customer retention strategies because it helps customers to feel noticed. In addition, be sure to keep current and accurate computer records of customers, to facilitate staying in contact.

All of these customer retention strategies can help existing customers to feel appreciated, and can encourage them to continue using the business's services. Of course, it is still important to try to acquire new customers through regular advertising and other good business practices. By taking a few simple steps to retain current customers, however, a business can save a great deal of money on advertising each year, as well as earn more money through repeat customers who may then recommend the company to their friends.