Customer retention for SME’s
In Australia, small to medium business equates to approximately 57 per cent of the GDP which amounts to 7 million Australians being employed. According to NAB’s Moments that Matter report, only 32 per cent see continuous growth and success. What are they doing, how are they a part of the 32 per cent? The answer? Customer Retention and Innovation. The modern customer demands a personalised and innovative experience, so business owners need to know how to deliver it.
- Find out what your customers want
No matter where your traffic is coming from, you need to listen to what your customers want. One way to find out this out is by knowing which keywords they are using online. There are numerous free platforms that can grasp information from Google Analytics without plugins. According to research, sixty-two per cent of customers are more inclined to become returning customers. Asking for the opinions of customers can be easily gained through a quick survey that gathers what is important to them or how their experience was? Were they satisfied, what would have made their experience better?. For business development, this information is critical because it can inspire a new way of thinking and improve the current product or service.
- Repeat customers
A repeat customer is more natural to sell to because they have already purchased something from you. According to Paul Farris’ book Marketing Metrics, he states that a repeat customer has a 60 to 70 per cent conversion rate. Adobe also found the same results when they conducted a study that found if customers purchase twice from you, they are nine times more likely to convert than a new shopper. The focus should always be on your current customers and clients; they have already shown an interest in your products and services.
- Get educated
How can you be innovative if you do not stay in touch with education and the latest trends? Business schools now offer a safe environment where you can experiment with innovation through school projects and liaising with other students. A revolutionary approach to customers will pave the way to retaining them and strengthening that relationship.
- Word of Mouth
The best marketing that any business can wish for is word of mouth. In a study conducted by Bain & Company, they discovered that after ten purchases, shoppers would refer 50 per cent of people to your business compared to a new customer.
If you currently have a business but want to increase productivity and sales, consider a design way of thinking. When you think from a design perspective, you mix creativity and strategy. Always remember to think of the customer and the feedback they give you, they are your most significant resource.