It’s often said that it cost less to retain existing customers than to cultivate new ones. Repeat business is essential to any growing enterprise. So what can you do to encourage it? Katherine Evans, PR and marketing executive at 08Direct, offers her ten tips for increasing customer loyalty.
A report released by Barclays Bank earlier this year, it was stated that just 53 per cent of small and medium-sized businesses are using tactics to keep their existing customer base happy and ensure that they will return to them for future business, writes Katherine (left). An increase of as little as five per cent in customer retention is thought to lead to as much as a 75 per cent increase in the average business’ profitability. Are you underestimating the opportunities that a customer holds for you once they’re already part of your client base?
As a small business in today’s business climate, you have something to prove and if you don’t prove ‘it’ then the likelihood is that customers will simply come in the front door and leave, very quickly, out of the back. Don’t get me wrong, I’m not saying that wanting to attract new customers to your business is a bad thing – it’s great when you get them. But, considering the time, money and effort that goes into expanding your customer base, it is just as beneficial to your business to look after the customers you already have, so they stay loyal to you in the longer term.