Learning how to improve your customer retention rate is crucial for a business to be successful. And with the right customer retention strategies, you can improve not only your lifetime value, but your reputation and authority as a trustworthy brand, too.
What is repeat business?
Repeat business is when a customer returns to your business multiple times to purchase a service or product. Dependent on the service or product offering, repeat business, or a returning customer, is often highly valued. If a company or business can create multiple returning customers, they typically will not need to remarket to these individuals, but instead, create a strong retention rate so they return again. So, how can you increase customer retention?
Customer retention strategies
There are multiple ways of increasing your client retention rate. Some of these are dependent on your industry sector, your product or service offering or your individuality as a brand. However, there are some generic client retention strategies that you can employ:
- Maintain relationships – most businesses spend a large proportion of their time nurturing and building a strong relationship with a client at the beginning of their contract or when they first contact your business. If this is later abandoned and the level of relationship diminishes over time, it’s likely to push clients away. Keeping a strong client relationship is extremely important in client retention and encouraging customers to return.
- Consistency in service – extraordinary customer service brings clients back time and again. Notable customer service is memorable – and if this can be delivered every time of purchasing or working with your business, it’s likely to entice people to come back again. By accepting credit cards, you’re also making it easier for customers to do business with you. When choosing a credit card processing provider, you need to compare the credit card processing fees they charge so you can get the best possible deal, make sure to factor in this aspect when calculating your profit margins. People generally also like consistency – so ensuring you’re delivering the same level of value each time is imperative for retention rates. And remember – personal touches go a long way!
- Respect lifetime value over short term profit – often, improving your customer retention rate can come from a mentality switch. The long-term benefits of having business from someone again and again over a matter of months, years, or even decades outweighs a one-off short-term profit that may seem like the be-all and end-all at the time. Recognising the importance of taking care of your customers will eventually outweigh the need for short-term wins, and create a more successful client retention based business.
- Receive complaints with grace – often, complaints have negative connotations. However, without complaints, it’s unclear what the issue has been, and why customers simply walk away without providing any reason. With complaints, it’s your chance to overturn the negativity in your business that is reducing your retention rate and endeavour to improve it.
Why customers return to Grosvenor House
Here at Grosvenor House, we are proud of our customer retention rate. There are various reasons why we have the successful retention rate that we do – and it comes down to not only our impeccable service and personable on-hand team, but the familiarity and consistency of our work, making it just so easy to return to us again and again.
On average, 86% of our conference rooms or meeting hire bookings have used our facilities on more than one occasion, while 55% of our client base comes through referrals. Our overall customer retention rate is 90% across all of our subscription services, for example, all our virtual office packages and co-working office space agreements.
If you’re interested in learning more about the services we can offer here at Grosvenor House, get in touch with a member of our helpful team today to learn more about virtual offices, meeting room hire and more.