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Smart business owners will do whatever it takes to hold on to their loyal customers. Why?
Studies show that it costs five times more to win a new customer than keep an old one. Also, loyal customers buy more. The 80/20 economic rule says that 80 per cent of businesses’ sales come from 20 per cent of returning customers.
So in addition to attracting new shoppers, don’t forget about your loyal customers. Here are four ways to keep your customers coming back for more:
Reward patrons for their loyalty
Customers have a myriad number of products and services to choose from. Reward people for continuing to choose you by offering discounts or perks. These incentives may also persuade less frequent customers to start using your service or buying your product more often. Social networks, such as Foursquare, Groupon, Gowalla, and Facebook Deals provide numerous ways for businesses to offer coupons and other rewards to customers.
Provide stellar customer service
Nothing makes a customer angrier than being ignored. Address complaints quickly and efficiently or face the consequences. According to a Harris Interactive poll of over 2,000 adult customers, 80 per cent of people will never return to an organisation after a negative experience. Thanks to the Internet, frustrated customers can now easily broadcast their dissatisfaction to thousands of other clients with just a few clicks.
Take online retailer Zappos.com, for example. CEO Tony Hsieh has built the business around one core philosophy: unparalleled customer service.
Invest in value
People want to know that they’re getting their money’s worth, and no amount of advertising will make up for a lousy product. Strive to deliver the best possible service or product at the most competitive rate. Businesses can only cut prices and corners up to a point. On the other hand, customers are more willing to cough up the money for something they consider worth the investment.
Let customers shop whenever and wherever they want
Today’s customer wants to shop wherever, whenever, and however they choose. Placing a store in a prime location for foot traffic is no longer enough: online buying has become essential.
Make sure your website is frequently updated and easy to navigate. Shoppers will move on if they cannot find what they need or have difficulties placing an order. Crystal clear photos, detailed product information and simple return policies are some ways companies are making it easier for customers to shop online.
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