While most of our clients contact us in search of new customers, it is imperative to remember that continued investment in your existing customers will ensure that you reach higher rates of loyalty. It costs dramatically more (i.e., 5-7 times) to campaign for new clients than to simply retain existing clients. So, no matter how potent and effective one’s marketing strategies may be, without the ability to retain customers, you will have a very inefficient system. Client retention tactics are therefore an imperative part of a successful marketing arsenal.
Organizations that consistently deliver excellent experiences for their clients are much more successful than those that do not. Esteban Kolsky, a leading Customer Experience Management (CXM) researcher, extensively studied the effects that bad experiences have on customers. His research shows that 67% of ex-customers named a poor experience as their reason for leaving. Furthermore, 91% of dissatisfied customers do not bother to voice their grievances. They simply shift to another solution.
These statistics show how intertwined the client’s experience is to the likelihood that they will return or stay. Especially in this modern age of technology, customer experience is absolutely crucial to your success. If a customer has a bad experience, not only will they likely not return, but they may also vent their frustration through word of mouth or various social media platforms. This can easily spoil an otherwise exceptional reputation which you managed to build.
Strive to demonstrate to clients that you focus on their state of mind, and focus on exceeding their expectations in every interaction. Your goal is to ensure that, regardless of their opinion on the product/service itself, their takeaway from each interaction is nothing but positive. Through these actions, customers will see that you genuinely care and their satisfaction levels will extend far beyond tangible benefits for you.
Satisfied clients can act as advocates to new prospective clients, which will allow you to broaden your client base significantly. Clients may reflect their satisfaction with your organization through word of mouth and social media channels, which is a very beneficial form of organic marketing.
Personal recommendations from friends and professional acquaintances seem more trustworthy than a traditional “one-size-fits-all” advertising approach. Consider what would happen if each of your clients advocated for your service/product to even just one other person. This surpasses the reach of many marketing campaigns and quickly establishes a high level of trust for your future customers. Thus, creating an opportunity to shorten your sales cycle.
Ensuring the best treatment for your clients allows you to stand out from your competition. Customers notice when their needs are being met. If you acknowledge these needs and continue delivering the best experience possible, they will consistently choose you over the alternative options.
An often overlooked benefit is the way that positive customer experiences impact revenue. Kolsky’s study on CXM also found that 55% of surveyed customers would be happy to pay more for a better experience. That means that over half of your customers don’t mind giving your organization more of their hard-earned money if it means they are guaranteed to be treated better.
Finally, great customer relations allow you to devote less of your precious resources to crisis management. By prioritizing the customer’s experience, you may anticipate potential crises before they even happen. Dissolving customer concerns produces a positive interaction, which may turn into additional purchases from the same client.
It is evident why successful organizations focus on delivering outstanding client experiences and why retaining existing customers is just as important as recruiting new ones. If you are seeking advice on how to create, implement and solidify retention techniques to give your clients a memorable experience, contact us today.
“Ranking our Web site high on search engines results, designing a professional Web site look and developing engaging relevant content for a heavy technology company like us resulted in a dramatic increase in client leads that we receive from our Web site.”Simon Robin CEO, Hardent