Sometimes we are so focused on driving sales and bringing new business that we sometimes neglect to look after our existing customers. After all, you have a fantastic service or product on offer so customer retention just looks after itself, right? Well, unfortunately, it’s not as straightforward as that. You need to nurture those relationships with existing customers if you want to retain their business. And it’s well worth making that investment of time and effort, especially when you consider the following facts:

• 80 per cent of your future revenue will come from just 20 per cent of your existing customers
• a 5 per cent increase in customer retention can increase a company’s profitability by 75 per cent.

The truth is it’s much easier to sell to existing customers than it is to brand new ones. So, here are three ways that you can increase customer retention in your business.

1.       Build personal relationships

Successful customer retention isn’t just about having a great product or service. In fact, a strong personal relationship between buyer and seller is just as important. So, make sure that you spend as much time checking in and connecting with existing customers as you do with nurturing new prospects.

2.       Provide good after-sales care

The customer relationship is at its most fragile when it is new so providing fast and efficient after-sales care is vital in establishing a strong relationship. It may be that the new customer needs a certain amount of handholding as they develop familiarity with your offering. Follow-up phone calls or visits of the ‘just checking how things are going’ variety are always a good idea. In addition, an information pack with key company contacts, sources of help, how to deal with out-of-hours emergencies and so on helps to set the right tone from the get-go.

3.       Focus on what makes you special

Every customer interaction should be driven by what makes you special and should reinforce your unique selling point. What you need to do is consider how to answer that ‘why should I buy from you and why should I continue to buy from you’ question that will be in the minds of all your customers – existing and potential. And the answer may well vary by the different types of customers and demographics you have within your clientele.  Perhaps it’s price, quality or convenience that sets you apart, or maybe even your superior customer service. Clients that have a clear answer to that question and a strong view on your brand are more likely to become long-term customers.

So, the bottom line is that customer loyalty cannot be taken for granted. As with most things in business, it needs to be worked on and cultivated. However, it’s well worth the investment. Use these tips to get you started today because the more customers you retain, the higher your profits will be.