CUSTOMER RETENTION

iREAP Article - CUSTOMER RETENTION


Many businessmen focus on the strategy of finding new customers (customer acquisition) and not paying too much attention to the old customer that they already had (customer retention). I see many ideas are born to try to acquire new customers but existing customers are not dealt with seriously and much left. Whereas, the businessman should run both so that business can grow better.

A few weeks ago I met one of the clients, he told me that is currently very heavily engaged in marketing activities as a way to get new customers. Of course, this program is very good and necessary, but when I ask whether there is a program that is held to foster good relationships with customers that have already had, the client just answered ‘not yet’.

One thing that is needed to be understood that every customer acquisition program requires a large amount of funds while to do customer retention is relatively cheaper. However, there are still many businessmen who are less aware that in the midst of a very tight competition, customer retention program will be able to provide many extraordinary benefits. Fostering good relationships with customers will make the company exist because it is able to maintain its customer. A survey from reliable sources indicates that the average company loses at least 20% of existing customers. The reason is because the customer is not paid attention so that when they are disappointed, they will immediately move to the competitors because they do not have strong ties with the company. The survey also shows that companies who are able to maintain 10% of existing customers will get twice as many customers every seven years. So, if the customer is maintained more and more through the customer retention program, then it is certain that the company will get a lot of new customers without the need to do customer acquisition strategy.

Then, why are many businessmen forget the customer retention program? The answer is because many businessmen do not understand about this. In this article, I want to share some simple things you can do to maintain existing customers:

  • Avoid Conflict With Customers
    Avoiding conflict is the simplest first step to fostering good relationship. Customers do not like conflict and just want to be respected. Understand their wishes and do not argue with them.
  • Say Thank You & Give a Gift
    A sincere gratitude is very important to the customer. Giving rewards to loyal customers will be able to generate new customers (due to recommendations from old customers). Take his heart and win the competition.
  • Bring Back the Lost Customer
    If you succeed in bringing back customers who have gone, this is a great start because they will be the most loyal customer group. They will tell you a lot about the goodness of your company.
  • The ‘Customer Complaints Is a Gift’ Principle
    Listen to all customer complaints well and full of empathy. The customer who complains means they still love your company. They want you to change to be better. If the complaint is handled properly and thoroughly, then they will remain a loyal customer.

Readers, there are many ways to foster good relationship or do customer retention. From now on, try to run simple things that the customer likes and not what you like. Do not just focus on finding new customers but take care of old customers who are already with you.

Written by,

Djoko Kurniawan
Senior Business Consultant | UMKM Expert
DK Consulting Group Jakarta
Email: info@djokokurniawan.com | IG: djoko.kurniawan | www.djokokurniawan.com