Retaining Customers

Written by Linda Alexander
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Retaining customers is one of the most crucial activities a company does, and one that puzzles managers across every industry. It's always less costly and more profitable in the long run to retain a customer, than to get a new one. Consider the lifetime value of customers, rather than the value they'll give you from just one purchase.

Over time, repeat business brings you more profit and a loyal following. It also builds your brand and your reputation as satisfied customers spread the word about your good service. Retaining customers saves you money on getting new clients, since it takes at least seven attempts before a prospect will buy from you.

Learning about Retaining Customers

Retaining customers does not have to be difficult, though. If you stay in touch with current customers and continue to survey prospects, you will always be one step ahead of their needs. By anticipating their wants and needs, then meeting or exceeding them, customers will be impressed with the value you give them and will continue to do business with you.

Loyalty programs are another way businesses keep customers satisfied. Reward your clients for doing business with you, and they will take notice. Ignore them, and they will go away. Appreciate your current customer base; they are the people that keep you in business and without them, your company wouldn't exist.

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