Image: jeffkorhan
The hardest thing for any business to do is to keep their customers on a long-term basis. Getting customers may be a difficult process in itself but it is more heart-breaking for businesses to have managed to get customers and then just lose them to competitors. Retaining customers or customer retention is a different ballgame which requires planning and a lot of efforts to succeed.
Retaining customers is important because it is the best way to ensure business profitability. Businesses with dwindling customer base instead of increasing is not an encouraging picture. Long-term customers usually are good referral sources which provide added business without being asked. The longer a customer maintains relationship with a business, the higher the value that should be placed on such customers.
Long standing customers are also less affected and attracted by the arrival of new competitors since most would rather risk transacting with a new company. It is not easy to start a business relationship all over again without good reason and customers know this as well. A customers who knows what’s best for him will not automatically drop a reliable product or service provider.
Businesses are therefore challenged to develop customers’ loyalty if they wish to avoid additional expenses that comes with the failure to develop a stable customers’ base. Satisfaction is the main key to customer loyalty. Customers need to be satisfied that they are getting the best product for their money, the best service they are entitled to, and the assurance that their worth to the business is recognized by correct appreciation. With a comprehensive tracking system of purchase frequency, companies will be able to develop a suitable loyalty program for their customers.
Originally posted on January 23, 2013 @ 4:00 am