Many businesses hyper-fixate on “closing the sale,” which makes sense! Your sales increase revenue, allow you to invest in your own product, invest in your people, and create a win-win situation for everyone involved. However, closing the sale is just step one of value creation for your customers. Here are three things you can install today to increase customer retention.
1. Post-sale follow ups
What seems like “grunt work” to a business owner is actually incredibly valuable to customers. For example, if you’re a gym offering memberships, send a follow-up email or call a week after registration to ask how they’re enjoying the gym, how their training is going, cleanliness, etc. You may already have a general idea of client satisfaction from reviews or feedback, but directly reaching out makes a new member feel taken care of. Most businesses never do this, yet it takes two minutes and can keep a customer for two years. They feel seen, their opinion matters, and they’re part of a community.
2. Reward Loyalty
A common theme among Chick-fil-A, Starbucks, and Sephora customers is their satisfaction with loyalty programs. Chick-fil-A and Starbucks have some of the best rewards in the food industry, with Chick-fil-A even offering free entrées for higher-tier members who complete surveys. Sephora customers can redeem points for coupons, discounts, and exclusive products. Rewarding repeat business makes customers feel valued and gives them a subconscious incentive to choose you. Of course, these brands still have to deliver an excellent product and service – but tie that together with loyalty rewards, and you create lifetime customers. Increasing customer retention by just 5% can increase profits by 25–95%.
3. Awareness
Customers may be aware of your business at the time of purchase, but they may slowly forget you exist if you never reconnect. This is why weekly newsletters or email marketing campaigns are so valuable – they keep customers engaged. Harbor Freight Tools is known for low prices, coupons, and high-quality tools. One of the first questions you get at checkout is for your email, because Harbor Freight sends out coupons and deals almost daily. This creates traffic, sales volume, and keeps them top-of-mind. Without those emails, Harbor Freight wouldn’t be the first place most customers think of for affordable tools and great deals. Lifetime value creation for your clients matters. If you incorporate post-sale follow ups, reward loyalty, and keep customers in the loop on products and services, you’ll earn more trust, more repeat business, and stronger long-term revenue. If you need pointers setting up customer retention systems for your business, Blue Ocean can help! Schedule your free 15 minute consultation and we will reach out to you!
