Call it the “S4″ if you’d like, but for service-focused businesses the secret to success lies in the ability to retain customers. Again, the secret to success in service-focused businesses is to RETAIN customers. Economically speaking, it gives your budget a lot of room to breathe, said room being about the size of a condo. If we take a look at the numbers, studies have shown that:
- Getting new customers can be 10-times more costly (and likely more difficult) than retaining current ones.
- A 2% increase in customer retention can actually decrease your expenses by as much as 10%.
- Familiar customers spend more than 60% more on average than first-time customers.
Therefore, these stats would show that if you have 2 customers, a first-timer and a third-timer, it would be advantageous to you to put more effort into retaining that third-timer than trying to convince the first-timer into your services. How can you do that?
This is where the “Super Simple Service Strategy” comes in. Don’t worry, this isn’t rocket science or Sun Tzu tactics. The secret lies in 4 important principles:
Give your customers a reason to come back. A valuable “series” is good for this. For example, discounts on frequent trips (“Every three purchases leads to a 15% discount on the fourth,” or something to that effect). Any way to give customers a reason to consider re-attending your services.
2. Social Media Marketing
Social media marketing allows for you to directly interact with your customers, reaffirming that they’re satisfaction is your primary concern. This even works better than E-mail marketing at times, because it gives customers a chance to communicate with your business (not YOU, your business; don’t forget social media etiquette for small business owners!) in real-time, and then there are the endless promotion possibilities.
Saying “Thank You” in the business world can come in the form of rewards. Rewarding your customers is another good way to show them that they are important to you. A good loyalty program also provides incentive for your customers to continue coming back to you.
This should be the easiest part. Simply be good at what you do! You should be providing the most high-quality service you can at all times! Not only will your customers be thankful, but they’ll also spread the word, and when that happens even a first-time customer pretty much has their foot in the door to becoming a familiar face.
By applying all these principles, your retention rates should increase. Remember, retention is the key to major success when it comes to services!