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Grow Your Business With A Customer Retention System

Grow Your Business With A Customer Retention System

Try searching ‘how to grow a business’ and you’ll find dozens of manuals written by people with no skin in the game. When you’re drowning in this much information, it’s hard to know which actions to take.

The underlying principles to grow a business are simple. Businesses have been around forever and the smartest guys in the room all know that to grow a business, you need to:

1. Acquire clients – by turning more new prospects into paying customers
2. Increase transactions – getting each client/patient/customer to buy from you more often
3. Increase value of each transaction – getting each client to buy more with each purchase

improve customer retentionWhat To Do With This Information?

Now that you have these three business growth tenets, how do you act on them?

First, you analyze the tenets. The first item is all about NEW clients and the second and third are about EXISTING clients. The latter two focus on customer retention.

Marketers (SEO) and Lead Generation directories like Yelp will keep hounding you about not being found by prospects. They’ll keep saying that you’re missing huge opportunities when new clients can’t find their way to you.

They have a point, BUT, we’re here to say that the inflow of new clients is only 33% of the way to increasing your revenue.

The Largest Part of Growth is Customer Retention

If bringing in clients is only 33% of it, then it’s clear that the other two methods are all about leveraging your existing clients for growth and improving customer retention.

  • Increase transactions
  • Increase the value of each transaction

These two are focused on clients you already have, those who have already purchased from you and paid you. Your goal is to get them to purchase more often and provide more value with each purchase.

20% of Clients Will Provide 80% of Future Revenues

retention strategiesNow that we’ve established that existing clients are huge and that maximizing their actions is crucial, what do you think of this statistic:

80% of your company’s future revenue will come from just 20% of your existing customers. [Gartner]

We’re not saying that you need to forget about getting new clients. We want to raise attention to the importance of retention strategies and the value of existing clients. This group is almost always forgotten by business owners, always having been sold on the importance of NEW clients.

Customer Retention Strategies

How do you leverage that 20% and ensure that you are retaining your most valuable assets? Retention is key. How you direct your energy, capital, and time to where it’s best served is the secret sauce of a successful business.

This isn’t just Neovora’s thought process. Silicon Valley software companies and even age old commodity goods consider these as facts:

  • Salesforce spends 49% of their annual revenue in sales and marketing budget on retention… and have 24% revenue growth year after year.
  • Johnson & Johnson spends just over 27% annually on retention programs… and consistently has over 2.5% growth year after year.

There are a many methods that you can do to increase CLV, increase customer retention, and grow a business depending on your industry, your products, and your services. Let’s cover two methods:

Email Touchpoints

In today’s interactions, customers are welcoming to offering their personal emails at the point-of-sale. If you can get a list of client emails, sending emails with valuable information frequently is a sure fire way to retain clients and increase CLV.

Send your clients periodic email touchpoints with helpful tips, industry information, and other useful tidbits in short and friendly emails. They’ll see your emails as value and won’t be obligated to read or respond to it.

Clients will constantly be presented with your brand name and see you as a leader in the industry, making them less likely to seek out other competitors when it’s time for their next visit or purchase. Your visibility also means they are prone to spend more often.

Get Valuable Insights And Improve Your Product/Service

Providing the best services and products to your clients is crucial. You know that you’re being measured when it comes to customer experience, and clients are more likely to stray if they think they can get better service elsewhere.

The easiest way to guarantee high satisfaction is to make sure you have no weaknesses in the experiences you provide! How do you find your shortcomings and identify your strengths?

Ask clients what they like and what they don’t like and improve product packaging, customer interactions, staffing, anything tangible and intangible about your operations.

Saving Face

customer retention systemYou may have already been asking your clients questions like “Did you find everything alright?” or “Did we meet your expectations today?”’ but consider that people rarely like being confrontational in face-to-face interactions, let alone raise issues about you or your business.

Asking them for feedback via email is the leading way to receive valuable and truthful criticisms. With this, you can arm yourself with all the data possible to eliminate weaknesses and improve strengths, thus ensuring that:

  • Clients do not stray easily to your local competitors.
  • Clients’ interactions are highly pleasing, lowering their inhibitions about spending more frequently.
  • You understand exactly what products and services your clients want, enabling you to provide more value with each transaction.

Touchpoint 80/20

Now that we have the importance of customer retention strategies drilled in, how do you get this powerful system up and running!? Lucky for you, we offer just the service to send email touchpoints and email surveys so that you can improve your customer retention system. Learn about the power of Touchpoint 80/20 to retain more clients and scale a business!

2018-05-11T02:16:44+00:00December 10th, 2017|Client Retention|Comments Off on Grow Your Business With A Customer Retention System

Brand Loyalty

Brick and Mortar Brand Loyalty

Mobile Wallet Apps. Social Wifi. Have you heard of them? If you are a retail location you might seriously want to consider them. Client lifetime value is one of the most important things to consider..

Currently:

  • Operating costs are rising (rents, wages, etc)
  • Client acquisition costs are rising and conversion is quickly diminishing as
  • Competition grows

Business Troubles In Omaha SEO

Retaining existing customers, getting them to spend more. This is the key to a long-lasting business. Now with the acceptance of mobile apps and desire for customers to utilize their mobile devices for EVERYTHING, there is a simple solution.

Leveraging the internet and web apps is crucial for local businesses. Especially those in Omaha Nebraska.

The statistics on mobile usage and wifi are astounding! Customers clearly WANT wifi and those businesses that offer wifi clearly experience a rise in sales. Most businesses consider wifi as a ‘very important’ service offering.

Its apparent that apps and technology can aid those entrepreneurs who want to increase their business’ success. But we are not all tech savvy or know how to develop apps for our own business. And developers are expensive! A unique proprietary solution is super expensive for a mom and pop location.

So where to go? What to do about it?

business growth bridgeport seoOur Lead Loyalty System is The Answer To Local Businesses in Omaha NE

We are able to quickly and effectively transform your free public wifi into a powerful lead generation and loyalty system. Do you want to:

  • grow your customer base
  • develop and nurture existing customers
  • increase the frequency of transactions
  • increase the price of transactions

Did you answer yes to these?

Retail Locations Around USA and in Omaha

The answer is a simple package we are finalizing. The NeoConex Loyalty program.  We are already implementing something similar in Albuquerque, only the social wifi offering, learn more here.

Contact us for more details and be sure to visit our pages soon. They are being developed now to properly highlight the benefits to local business owners in Omaha and around the nation.

Best Omaha SEO Company | Neovora SEO Expert

Omaha SEO Company

2016-11-29T22:53:58+00:00October 9th, 2016|Client Retention, CLV|0 Comments

4 Super Simple Steps To Increasing Customer Lifetime Value

How You Can Increase CLV

Do you know how much a customer is worth to your business and how to increase that value?

We were talking with a client in Albuquerque, New Mexico regarding their overall Albuquerque SEO strategy, and the impact that it has on CLV. More specifically, when you know which type of clients bring your business the best overall long-term value, it makes it much easier to target that type of client in the future, with both your digital marketing as well as offline strategies.

Knowing exactly how much every new customer is worth can be very handy when calculating estimated revenue or determining how much your business needs to invest in marketing and sales. It can also help you identify what needs to be done in order to increase customer lifetime value.

increase CLV by improving customer satisfactionThe easiest way to increase CLV is to keep your customers happy. A satisfied customer is loyal, spends more or buys more often from your business and stays a client longer. Plus, chances are high they will recommend your products or services to others they know or meet. We have crafted a simple 4-step guide on what you need to do in order to boost you business’ Customer Lifetime Value.

Why Customer Lifetime Value is Important

But before going through the steps let’s see what customer lifetime value is and why it is important:

  • CLV is the total estimated net profit from your entire relationship with a  customer.
  • It costs 6-10 times more to acquire a new customer than retain an old one!
  • Research by Harvard Business School has shown that if a business increases its customer retention rates by only 5%, their profits will increase by 25% to 95%!!!
  • Most companies have a small  base of loyal customers that spend more and are responsible for the majority of their profits.

Okay, now let’s move on to the CLV Boost Guide for Beginners (in 4 Super Simple Steps).

Step 1. Calculate Customer Lifetime Value

Calculating CLV can be very complicated but you can use the simple CLV formula below:

  1. How long does an average customer continue buying from you? (in years)
  2. How many dollars, on average, does he spend per year?
  3. Now multiply those two and..Ta-da! You have your CLV!

For our purposes, there’s no need to make this as difficult of a task as it could be!

Step 2. Determine Customer Satisfaction

As mentioned above, CLV is linked to how happy your customers are. So now that you have calculated customer value, you need to measure customer satisfaction. There are many ways to identify how happy your customers are, simply by asking them! You can do that creating online surveys (www.surveymonkey.com for example) and ask your customers to give you feedback. This way you will see where you need to make tweaks and improvements to increase CLV.

Step 3. Increase Customer Satisfaction (and boost CLV)

Don’t forget this step! Making customers happier may seem like a complicated puzzle with too many pieces to put together BUT, believe me, even the smallest change can have a huge impact on Customer Lifetime Value. In order to be able to improve customer satisfaction you need to understand what your customers expect from you and meet those expectations.

Here are some simple tactics you can do to boost customer satisfaction AND, consequently, CLV.

  • Provide exceptional customer service. In a world where businesses focus on just making the sale and offer very low-quality customer service, your customers will easily see and feel the difference.
  • Deliver what you have promised. Set very clear expectations at the very beginning of the relationship and do what you said you would do.
    If possible, exceed expectations.
  • Be a human, not a corporation. Communicate with your customers like you would with a friend. Call them by their first name, make jokes, get to know them a bit better.
  • There are so many things you can do to make your customers happier and it also depends on your industry, the type of business you are in, and your niche.

Step 4. Go back and make tweaks.

After 6 months, measure your CLV again to see if the changes you’ve made have had an impact. To do so, send another survey to your customers and compare the new data with the ones you had before. This way you can have insight of what your customers think of the changes you’ve made and if they are happier or not. Again, identify the areas where you can make improvements to increase customer satisfaction even more.

Increasing CLV = More Money to your Bottom Line

The key ingredient for increasing Customer Lifetime Value is to understand your customers’ needs and keep them satisfied after the sale and beyond. Build trust and long-term relationships with your customers, and exceed their expectations in order to have them coming back to you for many many years. And remember…even tiny changes can help you boost customer satisfaction, CLV, and dramatically increase profits.

Make sure that your site is fully optimized, in order to get the website traffic and the sale before worrying about CLV. Our free website audit will help you understand your site and what’s going on under the hood.

2016-10-30T18:19:55+00:00December 15th, 2015|Client Retention, CLV|0 Comments
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