When you take a look at what you're doing or not doing to retain customers, here are several factors of why you want to have a program
1) The costs of getting new customers
2) The decline of revenue
3) The lack of word of mouth for your promotions
4) A lack of referrals
5) Customers are switching to another restaurant or business because of better customer service
6) A lack of support or help
7) Customers don't feel appreciated
8) Not a happy place to be - for your customers or employees
9) More competition whether it's new or been around awhile
10) The lack of long term customers
11) You haven't created enough value for your products or services
12) Customer service sucks
13) No marketing budget
4) No plans or strategies for customer retention - except get more new customers
With increasing competition it may cost 5 times more to attract new customers than it would to retain current customers, as direct or
"offensive" marketing requires much more extensive resources to cause defection from competitors.
The worse case scenario is that you haven't formally created a plan or created some objectives to market to your current customers or guests. You know that your service could be better, you just haven't had the time to develop a plan. You definitely have turnover, more than you have liked, as result you are spending more money on advertising, coupons ads in the paper and haven't recouped your costs. Now your revenue or profits reflect this and it is starting to take a toll on your business.
During tough economic times or in off seasons, it's important to communicate with your customers. Jack Welsh the former CEO of General Electric suggests that you be proactive. "Don't wait for your best customer to defect. If you assume anything assume the worst. It's well documented that 68% of customers leave existing businesses because they feel that the owner of the business doesn't care. Be honest with yourself."
Have you spent too much time on getting new clients, are you or have you taken your existing customer for granted? If you think you have, they many not come in as often or referred business to you.
Think about your to ten customers and climb inside their shoes. How does it feel now?
How are you retaining your customers or guests? Why aren't they returning to your place of business or sending you new customers? There could be several factors that you need to look at. The internal and external marketplace of your business. Even if it is about you, as a solo-Entrepreneur.
By having a customer retention program, you'll keep existing customers longer, which is much more cost effective than keep attracting new consumers to your business. Your customer retention program ought to be boosting customer satisfaction and retention, when it is, it will also foster a generation of brand advocates or Word Of Mouth Ambassadors who are eager to spread the news about how wonderful you are.
As you can read and see, that there is great value in having a customer retention program. When you are ready to be known as the best secret in your industry, call me, I will help you get there.