How to retain customers

Businesses, now more than ever, need to harness the attention and loyalty of customers. Customer retention rates are decreasing as people are more inclined to shop around for the best deals. Subsequently, SMEs are advised to ensure their delivery of service is second to none.
The potential revenue stream from existing customers can be enough to keep businesses afloat during difficult times. The actions of a business best articulate it’s objectives and how it values it’s customers. Without a consistent and thorough customer service policy, customers are likely to paint a very unfavourable picture of the business.
There are 5 key areas to address in designing a customer retention strategy. These include:
1. Address customer complaints:
Companies often fall down in the speed and way in which they address customer complaints. Dissatisfaction may derive from customers feeling they are not getting the best deal; they may be unhappy with the length of time goods are delivered; or the speed at which enquiries are answered. These scenarios can lead to a reactive situation which is bad for business identity, brand, and reputation.
Research can help avoid them: implementing and maintaining a customer database, including information such as how often they purchase or use the business service(s) will identify customers who are losing interest in your company, and allow you to make timely communication with them.
2. Communication
Typically, customers want good communication and action from a company to resolve problems, so communication is crucial to retaining existing customers.
Also, it is essential to keep customers informed of new or developing products or services on offer, as well as all forthcoming events/stock etc. Reminding customers of why they selected your company above the competition in the first place encourages advocacy and spend. A measured approach to customer communication can be low cost and extremely effective.
3. Value in Employee Experience
Employees with direct contact with customers have a valuable contribution to make when understanding customer behaviour. They will recognise trends, consumer patterns, potential failings and solutions. Regular meetings with front-line staff provide an opportunity to update strategies and identify areas for improvement.
4. Establish a firm relationship with customers
Not only does this improve their level of loyalty and make it more difficult for them to defect; it also makes it easier for any problems to be resolved without the burden of a reactive situation.
5. Honesty
Trading with honesty and fairness will always attract customers. The fear of fraud, and unfair treatment amongst consumers now puts company traits of honesty and fairness (as well as quality and value) at the forefront of how people select which company to do business with.

Source : The Works : Small Business Hub