How to encourage customers to return
It's very difficult to get the same customers to buy from you
repeatedly and consistently - hence why the old business adage that
20% of your customers account for 80% of yours sales rings so
true.
You, of course, want more than 20% of your customers returning to
your business. A regular customer base helps you forecast sales,
target marketing, build on existing relationships by offering new
products and services and, crucially, boosts sales. Plus, a happy
and loyal customer tells their friends about your business - and
word-of-mouth is some of the most effective marketing there is.
Give them something to come back for
- The most fundamental part of encouraging return sales is making
sure that your service or product is up to scratch in the first
place.
- This extends to the experience they have when buying from your
business - customer service should be flawless.
- Make sure staff are attentive, friendly and helpful at
all times, and that they know the products and services well
so they can explain them to customers (spend a day or two training
them if necessary).
- Online, get friends to test your website to make
sure it's really easy to use, and resolve technical hitches
ASAP.
- If customers order by phone, don't keep them
waiting, and make everything as easy as possible.
Build a relationship
- Making a customer feel that you are paying them special,
personal attention goes a long way to building a
relationship with them.
- Say hello with a smile and have a chat if you meet them
face-to-face, and try to remember their name.
- Online, send an email of thanks when they place an
order - use their name rather than 'Dear Sir/Madam'.
- Asking a customer for feedback tactfully can make
them feel valued, but you need to be careful how you do it - a note
of thanks with a one line 'Is there anything we could have done to
make your experience more enjoyable?' is enough, as you don't want
to annoy them.
- If you have their contact info, send Christmas or holiday
messages at appropriate times - but don't inundate them with mail
unnecessarily at other times, which will put them off.
- Allow your best customers a little extra for free,
or throw in a product for free every now and then if they place a
large order - if they come to your business regularly, you should
reward them.
- It's also worth treating first time customers, perhaps by
offering a small discount - but only if you can remember who's a
first-time customer! This will create goodwill and encourage them
to return.
Incentivise them
- Loyalty cards and deals that offer discounts and
special offers for return custom are a great way to encourage
customers back to your business.
- Balance the number of return visits needed to gain a discount
with how likely it is a customer will bother to make that number of
returns - don't make it too many or they won't bother. Four to six
visits usually works well on a loyalty card.
- You can create them as you would business cards (although
obviously the layout and design will be very different) and just
get a rubber stamp to indicate when they've visited.
- Watch your costs though - you don't want to offer more than you
can afford. Just check offering one free thing doesn't cost you
more than the profits you made on the customer's previous
sales.
Out-do the competition
- Keeping ahead of the competition is also a key step. (Although
bear in mind good customer service can often be important to the
consumer than price differences. Hence why people are willing to
pay far more for luxury brands, which essentially the same product
as non-luxury brands, but really pay attention to their
customers.)
- How you stay ahead will depend on your market, but keep your
USPs and target customers in mind, always, and try to always
maintain an edge.
- That said, undercutting on price will always please a customer
- everybody likes a good deal.
Handling complaints and negative feedback
- This is a crucial part of encouraging return custom, as bad
customer service can be a huge black mark against a business.
- Customers far more often tell friends about bad experiences
with businesses than good ones.
- If a customer complains, the first thing they should hear is:
"How can we make it better?"
- If it's a serious complaint, a full refund and possibly also a
free product should be offered.
- Customers hate being passed from person to person.
You either need to train staff to deal with complaints or have a
system in place that directs them directly to the most senior
person available in the business. They absolutely must not be kept
waiting if they are being referred to someone more senior.
- Profuse apologies at all stages are a must.
- Make sure you or the member of staff communicates a desire to
keep the person as a customer, however difficult they're being -
speak calmly, positively and continue to ask what would make things
better - then accommodate what they want.
- Dealing with a complaint in a very positive way, quickly and
efficiently, can sufficiently please a customer that they leave
happier than when they came in. And it's the kind of service people
tell their friends about - which means a nice bit of word-of-mouth
marketing for you.
Resources
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