top of page

3 Ways To Improve Client Retention For 2024.

One of the best long term strategies your business can have is to focus on client retention. While many startups focus on just producing the initial sale, they often make a costly mistake of not continuing the relationship with that customer. As you quickly learn as an entrepreneur, marketing is expensive. So while focusing on finding new business is essential, here are 3 ways to improve client retention for 2024.

First up. Rapport. Trust. Relationship. Whichever you prefer to call it, the bond you have with a customer will keep them coming back because they feel comfortable working with you and your business. Building rapport is never really taught, besides saying "compliment their home" or something simple like that. A quick compliment will not build enough trust to keep a customer for a long time.

You're thinking to yourself, "I don't have an hour to spend with every customer building a bond", right? You don't have to worry, this all happens very fast. The things that will build trust fastest is a combination of asking questions and active listening. You should be asking the customer as many questions as possible during an exchange. The more they feel like you are really concerned about solving their problems, the more likely they will continue to go back. Then in person, make sure you are leaning forward and being attentive when they speak. It shows an actual level of concern that you want to know what they need and they aren't just another number.

What about in email or messenger? You can't show physically that you are paying attention but you can follow the same script you should have already established. Ask why they need it? What it's going to be used for? Make sure that you have found the best option for them specifically. This all comes from the word choices you make. So learn how to communicate with your customers so they feel you care and will want to come back to you in the future.

Next way to improve client retention is a solid referral program. This should be a no brainer but so many companies lack to embrace the power of a referral program that is worth it to the customer. An easy to way to decide what kind of return the customer gets when he refers business is take your average new customer acquisition cost. Then set a minimum purchase amount for the referral program to give a reward. The discount offered can be as much as your average customer acquisition cost if you want. If your business has regular repeat purchases, a large incentive for new business will pay itself off with the repeat sales.

For Example. (If you refer a customer that spends more than $100 you get 10% off your next month) This means the customer has an incentive to find someone else to buy from you so they will receive 10% off. Now when they get that 10% off, you are going to have a customer acquisition cost of only 10% on their purchase total. If you are operating with good margins, that going to benefit you heavily over the customers lifetime.

Next up is Rewards Programs. Similar to a referral program but solely for the benefit of the customer. You'll see these a lot as hole punch for how many coffees you buy, points on a online retailers website, know what the program means. The key to it being successful is that the rewards encourage regular purchases. This obviously depends on the business model you have but I'm a firm believer that if you can sell it once, you can sell it twice. This doesn't mean that the customer has to buy two of the same thing, but if you got them to buy from you once, you can set up a future sale in the morning.

This means give them levels to their rewards. Bronze, Silver, and Gold. How about Premium, Premium Plus, Premium Ultra...its all the same. Just levels that will give them goals to obtain. Give them a way to track it and you'll see you're purchase amounts increase as customers see "You only need to spend $xxx more and you'll become a Silver level member".

A high customer retention rate will support a business as it continues to navigate the constantly changing ways to reach new customers. 1. Build real trust with your customers by showing genuine concern for what will work best for them. They'll see the honesty right away and will respect that. 2. Give them a reason to tell their friends. Not often someone refers a person somewhere they wouldn't use themselves again. 3. Give them rewards with goals so they feel like they are winning when they keep coming back to you.

If you have any questions or need help figuring out how to build a good referral or rewards program or just want some help learning how to build trust like interrogators do, just let me know. Happy to help.

4 views0 comments


bottom of page