The Importance Of Customer Retention For A Small Company

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Being the CEO of my own business for almost a decade now, there isn’t much that I don’t know regarding customers and the importance of retaining them. Without customers, my business wouldn’t be able to function, so it’s paramount that a large focus is put on retaining as opposed to gaining new ones. Of course, you should never avoid your prospects, and publishing content with a purpose to attract new customers is never a shameful thing – in fact, it’s smart! However, having a loyal customer base on your side will give you a strong ROI that will allow you to continue with your activities in the future. Here, I will discuss the importance of customer retention, and the strategies that you can adopt to ensure that it happens.

 
Increase In Sales & Improvement Of Brand Image

 
Of course, the most obvious purpose for customer retention is to keep your sales increasing, but it can also improve your brand’s reputation as well. Whether you operate on a B2B scale or a B2C scale, having regular customers who enjoy interacting with your brand will make prospects question why they aren’t yet interacting with your business. To optimise this opportunity even further, you should work hard to establish relationships with your clients and ensure that you communicate with them on a regular basis, whether that is directly through phone calls or emails, or even indirectly via posting blogs that are relevant to them. Naturally, your retained customers contribute to your overall brand image, so if you have customers who are happy and proud to recommend your services, others will feel more inclined to jump on the bandwagon, leading me onto my next point…

 
Customer Referrals

 
Despite living in a world with endless technological opportunities, word of mouth is still one of the most powerful resources in the corporate world. Follow-up emails or even surveys can encourage your retained customers to spread the word about your small business, building a stronger client base and getting your name out there in a competitive market, no matter what industry you operate in! Moreover, with recommendations available on social media channels such as Facebook, you can spread the word of your company internationally as well as locally, opening the doors to many other opportunities. Now that you understand the importance of customer retention though, how exactly will you achieve it?

 
Customer Retention Strategies For Small Businesses

 
Although customer retention is a crucial element for all companies big or small, finding a method to achieve it is paramount. For small companies though, sticking to a tight budget is a higher priority, and thus you’ll want to save as much as possible to spend on other areas of your organisation. Putting this aside though, there are many ways in which you can retain your customer for manageable prices.

 
Social Media – as I’ve previously discussed, managing your customer relationships is a crucial way to ensure that they remain with your business, and what better way to do this than with social media? There are many ways in which small businesses can use social media, from tweeting solutions to your customers’ problems, to using it as a platform to share your latest blog and offer insights into areas of your industry that your customers may not have been aware of. In particular though, social media can be a great tool for small companies simply due to the fact that it’s free to use! Sure, you can boost posts by paying a fee of your choice, however to simply manage relationships, you can interact with customers free of charge.

 
Behaviour Tracking – producing an immaculate piece of content or the most engaging social media post is all well and good initially, but what’s the point if you don’t understand how well it performed? In order to retain your customers, you need to study the success of your posts and interpret the statistics that they produce. If your customers are frequently engaging with your marketing efforts, then great! If not, you might want to adjust your strategy to ensure that your customers remain with your company, otherwise you may face the risk of losing them. Plus, once again, analytical programmes are often available for free, so you can improve your customer retention strategies without spending a single penny!

 
As a CEO, I take my customer retention strategies very seriously, and now I’m passing my knowledge down onto you. If you’d like to find out more about keeping your customers loyal to your business, then don’t hesitate to get in contact with me today.