In any business, building long-term relationships with customers is the most important factor to ensure continued financial health. Loyal customers help your business to grow by repeatedly buying from you, and by bringing along friends and family.
Surprisingly, studies show that the average business in the US loses about a quarter of its customer base to competitors every year. But why is this so? While some reasons for the continued exit of customers are beyond the control of these business owners, most of them are and could be avoided. Here are five reasons why your business is losing customers-and how to deal with them.
Many business owners only care about prices to increase their profit margins. They neglect quality and value, which are crucial to customer retention. Consumers will value your products or services according to quality and the kind of customer care service they get, and not solely based on price tags.
Give quality service, quality products, and customers will want to repeatedly buy from you regardless of the price you charge them.
Proper handling and interaction with customers is the heart of any business. Consumers want their queries and complaints responded to quickly, and in a way that leaves them satisfied. They want their problem addressed and solved in the best way possible.
To retain your customers, you would need to have a friendly and responsive customers care service. Train your staff, too, so that they can better interact with and handle customers.
Technology makes the buying process convenient and fast. Consumers will choose a business that uses technology over the one that doesn’t.
To ensure you don’t lose business to your technology-driven competitors, integrate into your business technologies that consumers will find helpful. Make your websites navigable, optimized for mobile devices and with an attractive interface. Include digital shopping and payment methods in your business so consumers have more and better shopping options.
Happy employees take care of customers better. Customer satisfaction results from policies that take care of employees so they feel they own the business. Neglecting your staff is, therefore, akin to neglecting your customers.
To ensure your workers help in your efforts to retain customers, design policies and incentives that make the work environment less stressful. Empower them to make decisions at the lower levels so that they solve customer problems quickly, leading to happy customers.
Your customers expect you to recognize, appreciate, and value them for sticking with you. Failure to do so could see them abandon your business for your competitors where they will receive incentives for their loyalty.
Reward them with discounts and offers. Send them appreciation messages and cards on special days like holidays and birthdays. Include them in your newsletters and ask for their opinions when you introduce new products. In short, make them feel you care for them and that they’re part of the business.
By taking care of these factors that cause customers to leave, you can create a solid base of loyal customers for your business. A few of them may leave, but the idea is to keep the number of those who exit down. Retaining existing customers is easier than gaining new ones, which is the reason you should never overlook their needs, queries or complaints.
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