It goes without saying that customers are the lifeblood of your business. They are the reason you even have a business. They pay for your resources, employees, taxes and everything else you need to stay in business. They give you reasons to grow and eventually, more businesses.
If you have the fortunate problem of not being able to keep up with demand, the first place you should look is your weak supply chain management system. Even industry expert SourceDay will agree that the process is complex. But with automated purchase order management software, you can make it simpler and faster. It also reduces the risk of human error and fraud.
Acquiring new customers is 5 to 25 times more expensive than retaining existing ones. Furthermore, increasing your retention rate by 5 percent can boost your profits by 25 percent.
This is easier said than done, though. True enough, many companies fail to keep the loyalty of their customers. There are many reasons why and these include the following:
Failure to Innovate and Adapt
There was a time when brands such as Blackberry and Nokia dominated the mobile market. Then the iPhone happened, and it changed the landscape. The problem is these predecessors failed to innovate right on time. Blackberry is an example. It preferred to stick with the QWERTY keypad instead of embracing the touchscreen. It’s one of the reasons for the company’s death.
Failure to Meet Demand
Customers these days have high expectations from vendors. When they visit your store, they hope to find the items they need. If they can’t, then they won’t wait for you. They’ll just move on to your competitors.
Companies, big and small, set aside at least 5 percent of their budget for marketing. The goal here is to attract new customers. The truth, however, is it’s much cheaper to retain and nurture your existing client base.
There’s no such thing as a perfect program for customer retention. The reality is no matter what you do, some consumers will switch to your competitors. Your objective now is to make sure they don’t do so for a fault you could have avoided.