5 Reasons Why Customer Retention should be a Top Priority & How to Retain Them
Customer retention may not be at the heart of many businesses in Singapore; it is often the case that business owners think that customers are just out to get the cheapest deals, without paying much attention to loyalty or sticking to a particular company for their needs.
Thus, not much has been done to ensure loyal customers come back again and again. This is such a shame because there are a plethora of reasons why customer retention should be at the front of every business owner’s mind.
Here, we have compiled the 5 essential reasons why customer retention should be your top priority.
1. Customer Retention Is Cheaper Than Customer Acquisition
Depending on research paper or industry, the cost of acquiring a new customer can go up to five or seven times more than retaining an existing customer.
Therefore, it can be extremely expensive to gain customers, but much less so to retain them. Since existing customers are already aware of your business and company, you save on educating them about your company.
Just think about the marketing costs you have to spend on obtaining new customers, you can logically surmise that retaining and trying to gain a loyal following may be much easier and cheaper.
2. Word of Mouth: The World’s Best Free Advertising
Word-of-mouth advertising is the most cost-effective advertising that you can have and there is one great way to bring it to being. You’ve guessed it; loyal customers.
Customers who are loyal to your company are the best evangelists of your products and services. Furthermore, they are the also best people to give you valuable feedback on how your company can improve.
3. It’s Not As Hard As You Think
Majority of customers would remain with a company’s products unless they were unhappy with your service or product on their first use. This means that retaining customers may not be that difficult in the first place, especially when rewarding them with gift vouchers in singapore.
To be exact, 68% of customers leave only because they were unhappy with a company’s service. As such, investing a little more in ensuring top-notch, optimal service, or simply training employees appropriately would go a long way in retaining customers. It can be that simple!
4. Loyal Customers Tend To Spend More
According to Invesp, “existing customers are 50% more likely to try new products and spend 31% more (money)” than new customers.
That alone is a good reason to invest in customer retention to ensure that these loyal customers who are more likely to spend more continue to spend on your products and not on another company’s products.
5. During Tough Times, Loyal Customers May Be Your Saving Grace
The Covid-19 pandemic has affected so many businesses. We would never have expected such an unfortunate event to occur. Now that it has, gaining new customers has become more difficult.
As loyal customers would highly likely continue to patronize your business, investing in them becomes a worthy investment that you should seriously consider.
So Now, How Would You Retain Your Customers?
Customers love to feel appreciated and valued, so businesses would do well to have personal after-care services, discounts, promotions, and even giving gift vouchers or online vouchers for them to redeem at places they love. Gather information about them through surveys or questionnaires, and reward them with loyalty benefits! UNIQGIFT gift vouchers in Singapore are a good choice of loyalty benefits.
They come in the form of both physical and online vouchers and can be very easily gifted. Convenient and simple to redeem, and redeemable at our many merchant partners, it is no wonder your customers would continue feeling grateful with your services and products and be loyal, happy customers for many years to come!
To learn how UNIQGIFT E vouchers in Singapore can play a role in your reward campaigns, contact us here.