Customer retention is vital for a successful business. You can spend all the money in the world attracting new customers but if they don’t like what they see or stick around then it was a waste a valuable time and resources.
Business Review Australia spoke to mid-tier accounting firm RSM Bird Cameron about the top five ways retailers can achieve greater customer retention at a time when they continue to face challenges associated with a volatile economic climate and tighter scrutiny from banks. According to RSM, an encouraging shift in consumer sentiment is slowly starting to emerge.
Andrew Graham, National Head of Business Solutions, said, “Retailers need to move away from ‘survival mode’ to create a positive retail environment that takes full advantage of the fact that consumers are beginning to spend again, albeit slowly and cautiously.”
It is important to create a positive experience to keep customers coming back. This is the easiest way to increase sales, improve profit and grow your business. Differentiating from the online buying experience can be a key focus for traditional retailers in their strategy to woo consumers.
Graham said, “It can cost up to six times more to win a new customer than it does to have an existing customer purchase again. This is because you invested time and money to acquire that customer for the first sale but every additional sale after that involves very little cost.
“For every sale you make to a previous customer, you keep more as profit.”
Communication with your customer before, during and after sale is extremely important
Top Five Ways To Achieve Customer Retention
1. Awareness & Consideration
Be aware of what your customer is looking for and make sure this is what you are offering whenever you communicate with each customer and in every marketing initiative.
2. Select & Buy
Streamline your purchasing process to ensure it is as simple as possible for customers to buy from you.
3. Initial Experience
Prevent buyer’s remorse by actively engaging your customers after the initial buy. Inquire immediately about their level of satisfaction and provide information that reinforces the reason for their purchase.
4. Use, Learn & Support
Continue to nurture relationships with your customers at all times, including post-sale.
5. Repurchase & Recommend
Engage your customers in future sales opportunities by encouraging them to recommend you. Act swiftly to correct errors or address complaints and offer an incentive for them to return.
About RSM Bird Cameron
RSM Bird Cameron is the largest mid-tier accounting firm in Australia with national ownership and profit sharing and offers a full range of specialist advisory services, including business consulting and advisory, assurance and advisory, taxation consulting, corporate consulting and turnaround and insolvency. RSM Bird Cameron is a core member firm of RSM International, the seventh largest network of independent accounting and consulting firms in the world.