For today’s businesses, getting customers in the door is no longer enough. You have to keep them coming back, because profitablility and customer loyalty go hand-in-hand.
- Attracting a new customer costs five times as much as keeping one.
- A five percent increase in customer loyalty raises profits by 25% to 85%
- Businesses that focus on service get an average 10 to 1 return on investment.
Clearly, repeat business is the essence of success. Here are some guidelines to help your business cement customer loyalty.
Find out what customers want and need. Asking questions works. Get opinions, even in an informal way. For example asking “How is your dinner?” or “Is everything OK?” can provide you with immediate feedback. You might decide to conduct a formal survey, use suggestion boxes, or interview focus groups. Investing time and money to discover customers’ likes and dislikes will pay dividends in the future.