Why Customer Retention is More Important Than Ever Before

When the going gets tough, savvy business owners focus on customer loyalty and retention.

For months now, we’ve all heard whispers about a looming recession. These mumblings might have you wondering how you can set your pool company or construction business up for success during difficult economic times.

If you’re concerned about your company’s longevity or just want to improve results in the new year, it’s time to prioritize customer retention.

This guide explains the importance of building brand loyalty and shares practical tips you can start implementing today.  

See Also: Increase Customer Lifetime Value Through Your Own Loyalty App

Customer Retention vs. Acquisition

Customer retention involves retaining your business’s existing customers — those who have already worked with you on pool or construction projects.

Customer acquisition involves acquiring new customers and convincing them to invest in your pool installation or construction services. 

Both retention and acquisition contribute to your company’s success. However, experts across all industries agree that retention is more valuable — especially during periods of economic uncertainty when people might be more hesitant about investing in new projects or services.   

Why Brand Loyalty Matters for Your Small Business

If you haven’t made customer retention a priority in the past, it’s not too late to change your approach.

Here are some specific benefits construction companies — particularly small, local businesses — can experience when they focus on building loyalty among their existing audience:

Loyal Customers Spend More Money

A good rule of thumb for all business owners, regardless of industry, is that roughly 80 percent of your future profits will come from just 20 percent of your customers. In other words, the loyal few will have the most significant impact on your company’s success.

For your business to survive and thrive for years to come, you need to make consistent sales. Your loyal customers are more likely to continue coming back and investing in your services again and again.  

Loyal Customers Are Easier to Sell to

In general, it’s easier to sell to an existing customer than a brand-new one.

If someone has already worked with you to install or renovate a pool or handle a home remodel, they know that your company does excellent work and can trust your team to meet their needs. As a result, it’s easier to convince them to work with you again.

On the other hand, a new prospect might be more hesitant about choosing your business over one of the competitors. It’ll take more effort to show them what makes your company the best choice.

Loyal Customers Cost Less

It doesn’t just take less effort to sell to an existing customer. It also costs less money.

You’ve already done the hard work of winning over your loyal customers. That means you don’t have to spend as much on digital marketing or advertising to convince them to work with you again.

The same is not true for new customers. You’ll likely have to invest more time and money to encourage them to partner with you for their next project.

Loyal Customers Sing Your Praises

As a business owner, you know the value of positive reviews. They add credibility to your brand, increase your visibility online, generate new marketing/sales leads, and encourage new prospects to choose your company over another one.

Who’s more likely to leave a positive review of your business:

A customer who has worked with you several times in the past OR

A potential new customer who just learned about your company?

Of course, the first person will be a better ambassador for your business. 

Loyal Customers Engage with You Online

Loyal customers are also more likely to engage with your brand online. They’ll follow your social media profile, like and comment on your posts, and share your content with their followers.

All of these actions help you build brand awareness and expose your company’s services to a larger audience. These outcomes, in turn, can result in improved lead generation efforts, more sales, and a better bottom line. 

How to Improve Customer Retention

After reading the benefits listed above, are you more interested in improving your customer retention strategy? If so, start with these best practices: 

Invest in Email Marketing

One of the best ways to connect with your current customers is through email. Reach them directly in their inboxes and remind them about your company’s incredible services. 

Staying in touch via email helps you keep your business at the forefront of your customers’ minds. Even if they don’t require your services right now, they’ll be more likely to think of you in the future when they do want your help.

Show Appreciation for Your Customers

If you want to retain your existing customers, especially those who have been loyal to your brand for a long time, let them know that you appreciate them. There are lots of ways to do this: 

Send a thank you note after you complete a project

Send a birthday card or holiday card

Email a code for a discount on their next service

Check-in to see how they’re doing since you last worked with them

These efforts show that you care about your customers and want to stay connected to them long-term.

Create Highly Optimized Content

Regularly producing and publishing content on your website helps your company stay relevant. It also creates more opportunities for you to educate your audience, share valuable tips and tricks, and remind your customers about your business’s services.

What kind of content should you create? Blog posts, videos, infographics, eBooks, and white papers are all viable options. Take note of the content that resonates the most with your customers and prioritize that type.

Establish a Loyalty Program

Sometimes, the easiest way to increase your customer retention rate is to establish a loyalty program. Reward people for being repeat customers, and they’ll be more inclined to stick by you.

You can use several strategies to create an effective loyalty program, from offering points every time someone makes a purchase to providing a free or discounted service after a certain number of full-price services. 

Ask for Feedback

Don’t underestimate the value of asking your customers for feedback.

Find out what people like about your company, why they continue working with you, and what they’d like to see changed in the future. This information can help you fine-tune your practices and improve your services to increase customer loyalty.

Make comment cards available in your store to collect customer feedback or invite online customers to leave a review. You can also send surveys via email to gather more in-depth information about people’s likes and dislikes.

Prioritize Customer Service

Finally, don’t forget the value of customer service. When you take good care of your customers, they’re more likely to continue coming back and partnering with your business in the future. 

Strive to go above and beyond for your customers whenever you can, and encourage everyone on your team to do the same. Check in often to ensure their needs are being met and provide updates on their projects, too.

Start Building Brand Awareness and Customer Loyalty Today

Customer retention is always essential. However, it’s even more beneficial right now when many consumers are concerned about the economy.

Follow the strategies discussed in this guide, so you retain more customers, reduce costs, boost engagement, and increase sales.

The post Why Customer Retention is More Important Than Ever Before appeared first on Small Screen Producer.

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