As Marketing Budgets Tighten, Customer Loyalty is Key
Marketing budgets almost always get slashed during economic downturns so we feel your pain. In times like these it becomes even more important to maintain your current customer base and further develop their loyalty so let’s talk client retention. How has your client retention been from year to year? Whatever it is, it can almost always be better.
The Harvard Business Review has indicated that it costs anywhere between 5 to 25 times as much to obtain a new client as it does to keep an existing one. This is particularly important in our current business climate. Research done by Bain & Company further shows that increasing your customer retention rates by only 5% can increase your profits by 25% to 95% because you don’t need to spend as much on marketing, advertising and on-boarding new clients. What’s more, building loyal relationships with your customers inevitably generates new referrals and reviews too that help you grow your business.
So what is your client retention strategy?
It is not enough to simply invite your clients to come back, you need to keep in touch with them through-out the year and make sure when they think about making a purchase, they think about you first.
Business Texting can be a great budget-friendly tool that (when personalized) represents a more intimate communications channel than emails (90% of which is considered spam). Texts are delivered 99% of the time and regularly receive 25%+ response rates! With the texting capability you can communicate with customers throughout the customer journey and keep them informed of new promotions, products and more. And as our economy regains steam, texting allows you to keep them informed all along the way.
Consider how your customer retention and loyalty would improve if you could:
- Invite clients to make a reservation or come in for an appointment
- Inform customers of new products, services or sales events
- Make every message personal with their name and yours (include your logo)
- Offer birthday specials that make them feel like VIPs
- Provide alerts for flash sales
- After a sale, send a friendly text thanking them
- Gently ask for reviews and even referrals
All of the above actions will keep your retention high, build loyalty and improve long term relationships. This approach could give you a real advantage over your competition and keep your customers returning to you repeatedly. Keeping in touch with your customers using business texting solutions can really make you stand out with your excellent service when compared to the competition and keep you top-of-mind with them.