Cheap To Keep

You've heard it all before when it comes to stats about customer retention. Acquiring a customer costs five to 10 times more than retaining one. Repeat customers spend, on average, 67 percent more. After 10 purchases a customer has referred as many as seven other people.

So, if your focus is on acquiring new customers instead of keeping the ones you have, you are off the mark. Here is a brief overview on how to retain customers.

- Ask. New York Mayor Ed Koch was famous for asking "How am I doing? He always knew where he stood, even if he wasn't always happy about the answer. So, survey your customers about their likes and dislikes. Then, follow through with the information you receive.

- Profile. Learn as much as you can about your customers and then do something with that information to show them that you value them. Find out what makes a "best" customer and then put programs in place to move more of your customers into this category.

- Reward. Humans like to be treated as if they are special, and they will return to businesses where they have had these positive experiences. Reward them with special deals, or just pay a little more attention to them. In this era of digital communication, just sending a hand-written note gets you major points.

New business is exciting, I'll admit. But it is the clients you have that will bring you the most success over the long run. Don't spend five to 10 times more to bring in that new customer. Instead, invest a fraction of that to keep your customers coming back and referring similar "best" customers.

Harry Hoover is managing principal of Hoover ink PR. He has 26 years of experience in crafting and delivering bottom line messages that ensure success for serious businesses like Brent Dees Financial Planning, Focus Four, Levolor, New World Mortgage, North Carolina Tourism, TeamHeidi, Ty Boyd Executive Learning Systems, VELUX, Verbatim and Youth Link USA.

More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Customer Service Information:

Related Articles

Accountants / Lawyers Do Yourself a Favor - What do Your Customers Want?
In my day to day practice in strategic human resource management I often come across customers looking for a 'good' accountant or 'good lawyer'. As an accountant myself the common thread for a 'good acountant or lawyer' seems to be 'I want someone who can explain things in plain english without the jargon'.
How To Boost Your Bottom Line With Two Little Words
I hate to sound like one of those cheesy get-rich-quick commercials, but this week I am going to let you in on a little secret that is so powerful that it will immediately change the way you do business.In fact, this little secret is so powerful that you will be amazed at its immediate effect on you, your employees, and your bottom line.
Add Value - And Kill Mediocrity in Customer Service
There are two kinds of customer service we all experience occasionally, outstanding customer service, and bad customer service. What we experience most of the time is mediocre customer service.
Customer Satisfaction and the Service Business
The relationship between customer satisfaction and success of a service business is a direct one. Customer satisfaction measurement, however, is a much more complex matter.
The History of CRM -- Moving Beyond the Customer Database
Customer Relationship Management (CRM) is one of those magnificent concepts that swept the business world in the 1990's with the promise of forever changing the way businesses small and large interacted with their customer bases. In the short term, however, it proved to be an unwieldy process that was better in theory than in practice for a variety of reasons.
Establishing Yourself as an Expert in the Eyes of Your Customers
The most important aspect of a successful business is developing the correct mindset toward your customers. And this is not the over used phrase The customer is always right.
DONT Give Your Customers What They Want!
One of the mantras we hear repeatedly in business is "The customer is always right." I'm here to tell you that if you want to build a thriving business you need to forget that saying, and take note of Payne's Law #1 "The customer is always right- some of the time.
Top Ten Strategies for Delivering 5-Star Customer Service
Customer satisfaction is valuable, but customer loyalty is priceless. In today's competitive world of business, it is becoming more and more important to deliver customer service that is unbeatable.
What Every Employee Should Know About Putting Positive Phrases Into Customer Service
If you were a customer on the telephone with a question or complaint and were ready to make big purchase, which of the following phrases by this employee would make you feel welcome and want to complete your transaction? Which would drive you away?* I'm sorry. I didn't get that.
Transforming Disgruntled Customers into Your Biggest Advocates
"I am writing to complain about the widget I bought from your site the other day."Sell anything and eventually you will be on the receiving end of a sentence like this.
Mexico: Online Ordering-Dont!
I got it into my head sometime in December 2004 that I wanted order a laptop computer. I thought I would get one from the hugely popular computer company that allows you to call their 800 number and custom order what you want.
What Every Manager Should Know About How to Win the Loyalty of Customers
Dr. Michael LeBoeuf, in his cassette album entitled, Win Customers and Keep Them for Life presents twelve principles that will transform the workplace into a customer-driven, highly motivational team.
Make An Action Plan To Improve Customer Service
Customer Service is a critical factor for keeping your clients coming back and ensuring they'll refer you to others. Growing your business will be a difficult task at best if you don't perform, meet and exceed your client's expectations, and provide service that creates customers for life.
What You Need to Know About CRM
1. It's all about the customer.
Making The Most Of Newsletters
Newsletters can be wonderful tools for communicating with your customers or prospects. Because of their format, they're often infused with more credibility than traditional brochures.
Modern Call Center Solutions - Keeping in Touch is the Key
Call center solutions solve a range of age-old problems. As far back as ancient times, the success of a business has always depended on how well that business can communicate with clients and meet their needs.
Communicating Value
Abstract: People buy for their reasons, not yours. This article covers the key elements that prospects want to hear you talk about.
3 Special Benefits Every Customer Wants
Every customer looks for 3 special benefits when they dobusiness with you. They may not specifically ask for thesebenefits.
Hit The Jackpot With Customer Complaints
Our most powerful instinct is to avoid customer complaints, but they may be the best thing that happens to your business. Here's why.
Client Service as a Competitive Advantage
As someone who has been heavily involved facilitating strategic planning processes with organizations during the last 15+ years, I often find it somewhat amusing how people answer the questions I pose.For example, if I ask people, "What is your unique differentiation in the marketplace?" or "What does your organization really excel at?" They will almost always reply, "It has to be our client service.