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All things fleet tracking – industry news and best practices

The 4 Fundamentals of Customer Retention

Posted on 06/07/2013 by AKilgore   |  0 Comments

Customers = sales. It’s simple: the stronger your relationship is with your customers, the higher your chances are at sales.  In fact, it costs more to acquire new customers than it does to satisfy and retain your current customers. 

A recent IEC Insights article entitled, “Communication Keeps Customers,” states that customer retention marketing is the most cost-effective marketing you can create. It’s all about communicating with your customers, whether that’s in the form of a follow-up phone call, a customer newsletter or sending a reminder email.

So how much will all of this cost you? According to the IEC Insights article, it will cost you maybe about 6 bucks per customer. And if you’re wondering how much that investment is going to pay, you can figure that out by knowing  that repeat customers spend an average of 67 percent more than new customers. What if you don’t invest in retention marketing? How much will you pay then? You can get that cost from the lost sales and referrals that went to your competitors who actively work to keep their customers.

To help you get started with a customer retention program, here are the 4 fundamentals of customer retention, courtesy of IEC Insights:

1. Regular communication: It’s all about staying in touch and keeping the name of your business in front of your customers.
2. Respect your customer: In order to build loyalty, you have to show your customers that you appreciate their loyalty. One way to achieve this is rewarding them with customer-only offers.
3. Collect customer information: Your customer database should be current with every interaction—service history, installations, upgrades, etc.
4. Serve your customers: Exceed your customers’ expectations. Going the extra mile will show them that you value their business.


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