While most businesses are focused on how to acquire new customers, their current customers are slipping away to the competition. That’s because the business didn’t have a strong customer retention plan in place. See, running a business isn’t just about finding new customers, selling them your products, and moving on. It’s about creating a loyal base of consumers who are married to your brand and who will keep coming back time and time again.
So, what can you do to achieve a high customer retention rate? It all starts with creating an actual customer retention plan.
Step #1: Examine Your Current Retention Rate
Before you can create a customer retention plan, you need to analyze how well you’re performing currently. Take a look back at the past couple of years. How many customers have left you? Do you know why they left you? Did they go to your competitors? How has their leaving affected your bottom line?
It’s absolutely crucial that you track your customers. You need to pay attention to their behavior the entire time they’re with you. Look for any changes in their ordering patterns. Are they spending less all of a sudden? Are they ordering a lower priced product? The more information you have on your customers, the better you’ll be able to come up with a plan for keeping them around.