Do you know why a satisfied customer is the best business strategy?

Many times, companies worry about acquiring new customers but they forget about all the benefits from keeping the current customers happy. One of the most important arguments to pamper your customer is the Pareto rule: studies show that 20% of your customers represent 80% of your sales. This means that it is easier and cheaper to sell more to the current customers than to gain new ones. Therefore, to increase sales, customer retention tactics are a must. Bellow we will show you how to keep your customers happy:

  1. Provide great customer care: it might sounds obvious but it is not so easy. In fact, according to the American Express Survey “78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience”. So, offer customers solutions related to their purchase. People like attention, so if the customer feels special and taken care of, he is very likely to return to the store next time he needs something.
  2. Surprise your customers and give them something to talk about: Satisfied customers are the brand’s major allies. If a customer is happy with your product/ service it is possible that he will do “free publicity” for the company; he will tell his friends, share his experience in social media, and the best part is that, it won’t cost a dime! If it is something unexpected, he will be even more willing to talk about it with his friends and spread the word about your product. At the same time, this will help enhance the positive image of your company. For example, you can give them a special discount after their 10th purchase, or after they have been a customer for 1 year.
  3. Turn a negative experience into a positive one: Based on Ruby Newell-Legner’s book “Understanding Customers”, “It takes 12 positive experiences to make up for one unresolved negative experience”. That is why it is very important to monitor the customers’ negative experience, and when possible, take responsibility and take action to alleviate the situations. As Tesco Mobile was able to do, when be turned a nagging customer to refused who date girls who had Tesco as a mobile provider into a brand lover, and got tons of free publicity as well (read about Testo Mobile’s case).
It is common to hear about the importance of making the customer happy, here we told showed you ways to do it, and also explained to you why it is so important. Now it is time to put the tactics into action and see how the sales go up!