TOP 5 STAND-OUT CUSTOMER RETENTION BENEFITS

By

 Business Growth.



It's hard to believe that so many companies still devote most of their resources to new business. Don't get me wrong, a new customer is always a worthy pursuit. But this laser focus on the present often comes at the expense of the future.

The benefits of customer retention are sometimes lost among the hype and excitement that surrounds new business acquisition because the truth is, it's just not as fun.

Here are the benefits of customer retention, walk with me:-

#1. Cheaper than acquisition

While the old adage about ''it costs five times as much to acquire a new customer'' may not be accurate in every case, the basic principle is spot on: it's more cost-effective to keep someone in the fold than to bring in new customers. Even still, if it's data you want, there has been plenty of research into acquisition vs retention and every one of them has come back with the economics favoring retention as the more economically viable focus. On that note, retention is cheaper than acquisition, but it isn't necessarily easier.

#2. Loyal customers yield higher profits

Companies are able to yield higher profits by maintaining loyal customers. These customers make more frequent purchases and spend large in every transaction with their brand. Loyal customers do tend to shift frequently even if their brand raise price, they continue for long. However, every company need to be cautious while raising their prices as end goal is lifetime revenue not just today's revenue.

#3. Advocacy

One of the related benefits of customer retention that goes hand-in-hand with referrals is customer advocacy. Customer advocates are those that scream your name from the rooftops, telling anyone who will listen how great your company is, how solid your products are and how the competition simply trail in your wake. What's more, they do all this for free! As we just discussed they are extremely important in influencing the buying decision of potential customers, not just through word of mouth and direct referrals, but advocates are also extremely active online. Social media forums, websites, product reviews, eCommerce sites and app stores are their new favored playgrounds and with more and more customers heading that way for more info before committing to purchase, it's vital you have these communities in place to speak positively about your brand.

#4. Engaged customers provide more feedback

Feedback is critical to the success of any business. Customers who provide feedback are often willing to give brands the benefit of doubt. They're telling you how to earn their business repeatedly. As research has shown, people who have complained and seen their issue resolved are 84% less likely to decrease their spend.

#5. Easy up-selling and cross-selling

Business find it easier in up-selling and cross-selling its products to group of loyal customers. Once people are satisfied with the services of particular brand; they like to explore more stuff. Customer don't go for much analysis and comparison of brand products while making purchase decisions if they get a poor service experience. Business get better support from its customers in its hard times that ensure its long-term continuity.


You can learn more about our market entry expertise or get in touch to discuss a potential project.


Are you looking for online jobs in Kenya? Check it out here

How to make money online? Find out more here


Written by: Antony Moturi


   About the Author: 


Antony is a professional DJ, Pianist, Social Media Manager, Content Creator and a Blogger. Besides that he does professional Sound Engineering, Public Speaking and is a Youth Leader.

Comments

Post a Comment

Popular posts from this blog

Make Money Online Today (Step By Step Guide)

By
Image
Gone are the days when you had to open a storefront to start earning. The internet has changed the game. Today, you can do business in a remote location: no shop, no stocks. Interesting? Well, you don’t have to own the products. All you need is to have that client and come up with how the commodities reach them. Additionally, the internet has opened up a lot of income-earning opportunities. From your couch, it is possible to see your money grow. Such is the case when you join First and Fast Communication System Company (FNFCOM). How does it work? Well, fnfcom is an online airtime distribution system enabling you to have sufficient top-up. Besides, the company seeks to help you out of those mobile debts, the likes of Fuliza, Mshwari, etc. It is time to get out of the cycle of debts. So, how do you go about it? Sign Up at fnfcom The first step is to create an account at fnfcom.   Go to your browser and load the website www.fnfcom.com . It takes you directly to the   home   page. A
Read more

4 SECRET TECHNIQUES TO MAKE YOUR BUSINESS MORE AUTHENTIC

By
Image
 The Untold Secret to Mastering Authenticity. There's something to be said about authenticity in business . It allows us to show up as ourselves, not the cardboard cutouts we think others want to do business with. The result? A much more enriching and personable work experience and an irresistible magnetism that attracts new business. Authentic people and things are the real deal. And when it comes to business, this matters more than you may think. Take a look at the following techniques to build and maintain authenticity in business. #1. Use storytelling Authentic people and things have stories behind them. These stories back up claims and highlights how they got to where they are today. An authentic meal? Passed down from generation to generation. An authentic artifact? Found through an excavation in some part of the world. An authentic business? Started in the basement of a factory, built up through years of struggle, determination and grit. You need to be a storyteller. And no
Read more

6 MOST SUCCESSFUL INCOME STREAMS EVERY WRITER SHOULD CONSIDER

By
Image
 How To Make Extra Cash. Writing is both a blessing and curse. The work is cerebral and tough. The pay isn't always that great. Most writers understand or assume they won't get rich typing. But we can make a great living. Most writers spend all their time earning money from a single source. Whether it's writing articles or books, blog posts or ads- the average writer has a single income stream from his/her work. Not only is this dangerous to your finances , but single-income sources can lead to burn-out and total dependence upon the host source. We can do better. One of the best things about being a writer is that, even when you're reading past your bedtime, your writing can still be hard at work ranking in some extra income. The trick is knowing how to play the publishing game.  Here are some ways to earn or make extra cash as a writer. #1. Books A book can be an evergreen source of income. Books also give authors credibility and help you grow a tribe of loyal readers
Read more

6 WAYS TO MAKE ONLINE MEETINS BETTER

By
Image
 Zoom Tips For Startups. Now that meeting online is a necessity, do you know the various ways to control and improve Zoom meetings and other online gatherings? Zoom has packed plenty of complexity into all the options that can be enabled or disabled to meet different business needs . You will need to decide how many of those choices should be left to the individual versus mandated Zoom's administrative controls. You've probably attended more than a few Zoom sales meetings over these past few Covid years. There are some people, however, who don't appreciate zoom and who don't understand the dos and don'ts of Zoom meetings. Check out these expert tips to avoid embarrassment and boost productivity. #1. Join your Zoom meetings early Do you log on at 9:59 am if a Zoom meeting starts at 10? That's too late. Think about, you would not arrive at a client meeting late, so why go to a Zoom meeting late? Instead of signing in a minute before the meeting is scheduled to st
Read more