CUSTOMER RETENTION FOR NIGERIA SMALL SCALE BUSINESSES
Drucker once said, the purpose of a business is to make profit and keep
customer. Customer retention deals with the latter. Customer retention is a
vital fold in small scale business due to the competitiveness of the market be
it product or service. Customer retention refers to series of activities and
actions firms and organization take to reduce the number of customer
primary goal of an ideal entrepreneur is to retain its paying customers. This
can be carried out mainly through customer loyalty and brand loyalty
rightly, the first contact a customer has with your organization/brand may
continue throughout the life time relationship, as the sayings “first
impression lasts longer”.
RETENTION IS IMPORTANT
new customers to your business is quite pleasing, but not retaining the
existing ones can be disastrous to your business. It is easy to convince an
existing customer to purchase/subscribe for additional unit of your product or
service based on the existing interest making it simply to capitalize on their
experience with your organization.
to research, selling/providing service to a customer you already have
relationship with is often more effective to grow your revenue because
advertisement does not necessarily attract them. This makes customer retention
faster and on average cost up to seven times less than customer acquisition.
retention is a more sustainable business model that is key to sustainable
growth. It generates a sequential progression. Through a loyal customer, you
can generate a chain of customer without stressing to advertise your brand. The
experience a loyal customer has with your brand serves as testimonies to catch
more customers and increase your revenue.
HOW TO INCREASE
that your competitors can go extra miles to convince your paying customers to
shift ground; the following tips can help save your customers from defecting.
YOUR CUSTOMER EXPECTATIONS: Put yourself in the shoes of your customers, the
set an early expectation higher than what they can request. This will help you
eliminate disappointment in their expectation.
PROMPT IN YOUR DELIVERY OF SERVICE OR PACKAGING: Try as much as possible to
keep your promises when it comes to delivery of services, never promise what
you cannot fulfill. This is common among sole proprietor entrepreneurs. It is
quite better to be factual about your service than known for failing promises.
Integrity is a brand loyalty that buys your customer loyalty.
YOUR RELATIONSHIP TO BUILD TRUST: Let your relationship with your customer or
client build a strong trust and you will be surprise to see how marketable they
will be for you. It will also make you valuable that they can trust other
activities with you.
PROACTIVE APPROACH TO CUSTOMER SERVICE: Customer service is very important,
never give a slack to apologies on slight complains of your product/ service,
then go extra miles in making up if possible to save future occurrence. Learn
also to request for feedbacks thereafter.
SOCIAL MEDIA: Make your loyal customers brand ambassadors of your
product/service without obliging them to. This can be done through several
measures. (Contact me via email for further details).
YOUR CUSTOMERS AND GO EXTRA MILES: Being observed that many Nigeria
entrepreneurs careless about having a database for their customers, this is
quite disastrous as it does not even help to discover increase or decrease of
your clients as one goes and another leaves. Having a precise data will help
you communicate them time to time. Monthly/ seasonal messages can be sent to
make your brand intact in their hearts. You can also advertise a new brand or
service of yours using same message. E.g For this season, Unique Fabric Care
has decided to offer you 30% discount of every 10 clothes dry-cleaned.
YOUR LOYAL ADVOCATE CUSTOMERS: Customers who are brand ambassadors should be
rewarded with some coupon. This will motivate them to do better.
SURE YOUR EMPLOYESS CAN EXPLAIN YOUR PRODUCTS BETTER: Remember, the first
contact with your product goes a long way, it is best for you to train your
employees to market your product/ services well in your absence. Ensuring that
your employees are skilled enough to attend to customer is vital. This will
help paint a beautiful picture of your organization in a new face.
How to Know if
your Company is Getting Better in Retention.
RETENTION RATE= CE-CN
CE= number of customer at end of period
CN= number of new customer acquired during the period
CS= number of customers at start of period
YOUR RESULT HERE
INDICATES IF YOU ARE DOING WELL OR NOT!