In the world of today, it is becoming increasingly hard to retain customers because the marketplace is extremely crowded. Back in the days, brands could boast of doing nothing all year round to retain their customers yet have their profits shoot off the roof. That trend has drastically reduced these days. Now, brands work around the clock designing and implementing strategies to make customers stick with them.
As a business owner who wants to build a profitable brand, you must also work hard like the big brands to ensure you do all you can to make your customers stick with you.
When I started my brand 5 years ago, one of the metrics I focused on was and is still my churn rate. Churn rate is defined as the percentage of your customers or subscribers who cancel or do not renew their subscriptions during a given time period. This is a critically important metric for companies whose customers pay on a recurring basis. Regardless of your monthly revenue, if your typical customer does not stick around long enough for you to at least recoup your average customer acquisition cost, you are in trouble.
Making Customers Stick with You
Many business owners I have interacted with erroneously think it is an uphill battle when it comes to making customers stick with them. While that might be true to a certain extent, I can also ascertain that making customers stick with your business is not as hard as it sounds.
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In order to make your customers stick with your brand, you must:
- Ensure that you exceed the level of excellence you started with or at least maintain it: If you start on a good note and over time you begin to “water down” the quality of your goods or services, be sure that your customers will find the next available brand to do business with.
- Care greatly about your customers: The one thing many of your customers are looking for is your care and genuine interest in them. Whether it’s helping them save money, offering them quality advice that can help them advance their lives or even getting to know them personally, you will go a long way to earning their trust and ultimately loyalty.
- Admit it when you are wrong: This is one of the hardest things to do ever yet when you humble yourself and not only admit it when you are wrong but also take it a step further to apologize, you will find out that most of your customers will stick with you for a long period.
- Grow with the trend: It is important as a business owner not to lag behind when it comes to trends and updates in your industry. If your customers know they can get firsthand information about your industry from you, they will be willing to stick with you for a long time.
- Communicate effectively: One of the things that your customers wish you could do more of is communicating effectively. Each time you need to make changes in your business or you have new updates, be sure to communicate it promptly and watch your customers stick with you.
Making your customers stick with you is not rocket science. It only requires that you are intentional about it. Implementing these steps one day at a time will lead you closer to your dream of making your customers stick with you despite a crowded a marketplace.
Thank you for reading. What other strategies can a business owner adopt to allow customers stick with them? Your opinion matters. Leave a comment or ask a question below.