The UK’s financial position is an interesting one at the present moment: a cost-of-living crisis threatens many as fuel costs increase and wages stagnate, but small businesses and the private sector experience a post-pandemic boom in business that’s difficult to replicate. While this volatility might not be the most reassuring, despite the positive outlook it brings to financial reports across the country, it does represent an opportunity for businesses to reckon with mechanisms that can fortify their growth against the possibility of reduced spending.
Customer Retention, and How to Measure It
Customer retention is an overarching metric that quantifies how many of your customers stay ‘loyal’ to your brand after their first purchase, and for how long on average. There are many different individual metrics that can help you track your business’ performance when it comes to customer retention, such as:
- Customer Churn: the rate at which customers move on from your product or brand.
- Existing Customer Revenue Growth: whether repeat customers are spending more money with you, and by how much.
- Product Return Rate: the rate at which product returns and refunds take place.
Each metric can tell you a different thing about your business’ performance, and give you a line of attack for improving customer retention in the short and long term. However, the following two tips illustrate key areas that businesses can universally benefit from.
Implementing New Systems
One of the principal ways in which you can improve a customer’s experience is to ensure they find your business, and the processes attached to it, convenient. Introducing and applying ways for your customers to interact with you and your product, as well as to transact swiftly and safely, will leave a positive impression and dramatically increase the likelihood of return.
With many businesses pivoting to digital spaces, online storefronts and digital payments are fast becoming the norm – but online payment processes have not yet been standardized across industries, meaning some vendors can be frustrating to attempt a transaction with. Implementing a secure checkout and payment system will ensure your customers feel safe, and have a simple time of transacting with you. Likewise, implementing a user-friendly digital storefront will engender trust as well as ensure ease of access to your offerings.
Investing in Customer Service
No matter the quality of your online space and customer-facing systems, there is one tried-and-tested area of address that is arguably the single most effective with regard to increasing customer retention: customer service.
By paying close attention to your business’ direct interactions with prospective customers or customers returning with a complaint or query, you can make their return vastly more likely. Introducing customer service training for sales and support staff can help them have informed face-to-face conversations, while marketing staff can speak to customers directly through social media platforms to ensure their satisfaction.
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