Every business wants to keep their existing customers, as well as bring in new clients. Client retention rates are where most businesses are focusing their money in. If retention rates were unimportant, companies would not bother to update their advertising, strive to produce consistent products/services, and look into new methods of reaching out to their customers. All businesses depend on their current clients to help spread the good word of their business to other prospecting clients.
Profit and clients are retained when companies deconstruct a product/service, and analyze it to see what other values can be added. Remembering why a customer hired a company in the first place, is also important. If the company provides their customer with proper advertising and current updates on their business, the customer will feel stronger about the product/service they are receiving from that company. Yet again, customers are retained.
Retention rates are affected by the customer-business relationship. If a business stops caring about the questions and concerns of its customers, it’s obvious customers will not want to stay with that business. A company should try becoming more referable to their customers, by filling in service gaps. A customer is more likely to continue to use a company’s service/product if they know their needs are being met, and their questions are being answered. Building trust with customers, through face-to-face contact, is an old trick to a new problem.
A business should want their customer to care about their company and vice versa. The customer-business relationship requires quite a lot of give and take. A company must put forth effort in showing they care about the customer before they continue to provide their product/service to that customer. When a business thinks their products/services can sell themselves, without any given effort, the client retention decreases. No business owner should think that their business is too good to lose clients. Prevent decreased client retention by always being concerned for the customer.