Just because you have a great product does not mean that you are going to be able to keep customers. A superior product is only part of the equation when it comes to customer retention.

Customer Lifetime Value (CLV) is a metric that measures the impact your customers can have over time. The longer a customer is retained, the more their CLV goes up.

According to Bain & Company, an increase in customer retention by a mere 5% can increase profit by as much as 25%.

Your loyal customers — the ones who stick by your side — should be your number one priority.

Customers who feel loyal to a brand will make more purchases. They will be more likely to write positive reviews about your business online and tell their friends. They also cost a whole lot less to get in the door than brand new customers.

The benefits of retaining more customers and building customer loyalty are exponential. Here’s how.

7 tips for retaining new customers

#1. Set up a CRM

Regardless of if you are trying to reach new customers or retain existing customers, having an effective way to manage your customers is essential. That’s why the right customer relationship management (CRM) software is invaluable for your business.

Having the right CRM allows for effective email marketing, enhances customer service and will even help you manage incentive programs effectively. It will help your team stay organized and on the same page. It can also help you learn more about your target audience and stay in touch with your current customer base.

If you’re looking for the right CRM, consider the Marketing 360® CRM. It’s fully customizable and integrates with your website. And, it’s designed to scale with your business as it grows.

#2. Stay top of mind with email marketing

Back in the old days, it used to be customary for a company to periodically call your clients and see if they needed any of your services.

Some things have changed. People are inundated with robocalls and, by and large, do not want to hear from businesses by phone. However, the need to stay top of mind is still as important as it ever was. But, these days, email is a much better way to stay relevant.

Email marketing is a great way to keep in touch with your customers. And, if your email campaign is set up correctly, it makes it really easy for them to contact you, too.

By creating automated email campaigns, you can generate more feedback and reviews, keep customers up to date about your business, recommend additional products and services, build awareness of upcoming sales and offers and so much more.

What’s more is that email marketing works. In terms of ROI, email marketing is the ultimate digital marketing channel, boasting an average ROI of 3,800%.

#3. Focus on providing next-level customer service

A lot of business owners mistakenly believe that, if they’ve got a good product, that’s really all that matters.

While it’s true that consumers value quality products, they base many of their purchasing decisions around customer service.

After a good customer service experience, 70% of consumers say they will spend more with the business and 97% will go on to tell others about their experience.

Focusing on good customer service should be a given, but unfortunately, customer service can fall by the wayside when a business is more focused on acquiring new customers.

Do not let that happen. As I said before, it is cheaper to retain existing customers than it is to find new ones. Ideally, with good customer service, you will have a good mix of both.

#4. Offer incentive programs

Offering existing customers an incentive to return always helps.

An incentive program will keep customers coming back so they can keep earning more incentives.

This can be as simple as something like coffee punch cards, or as complicated as a point system where customers can choose rewards based on the number of points they’ve earned.

People love to feel like they’re getting a deal, and they love it even more if the deal feels like it’s exclusive just for them.

Giving people an extra reason to keep coming back also creates loyalty. The greater the number of good experiences a customer has with your business, the more loyal they’ll be, and the more likely they are to keep choosing you in the future.

#5. Offer an exclusive loss leader

As I mentioned, the more exclusive you can make your offers, the more your repeat customers will like them, and the more effective they’ll be.

Too often, businesses only offer exclusive deals to new customers. This can leave loyal, long-term customers feeling unappreciated.

By offering an exclusive loss leader sale for only your current customers, you can show them that they matter and that you appreciate their loyalty.

People love feeling exclusive, and treating current customers to special programs and sales will earn you customers for life.

#6. Ask for feedback and LISTEN

You can’t always see the forest through the trees, especially as a small business owner.

When you’re so close to your business, it can be difficult to see what’s working and what needs to be improved.

Nobody is more equipped to tell you which aspect of your business needs improvement better than your regular customers.

These are the people who have the most experience with your products and services. They have firsthand knowledge of what’s working for them and what’s not.

Ask for reviews and take them to heart. Everyone likes to be listened to, and if improvements need to be made, your loyal customers will let you know.

Not only will asking for feedback and reviews help you meet your customers’ needs better and provide better products and services, but it will also help your business stand out more and attract new customers.

#7. Stay on a first-name basis

Your VIP clients may not make you the most money right away, but over the lifetime of the relationship, they can prove to be invaluable.

Communicate with your current clients in a personal way to show them they are part of your core community.

Stay connected and on a first-name basis with your customers via social media. It’s one of the best places to establish a more personal connection, and to show customers the other sides of your business.

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Originally published on 11/30/20