How to Retain Old Customers? 

HQSOFT, the leading company in the field of providing DMS software for businesses in Vietnam, to learn about the issue of How to Retain Old Customers. The battle between increasing new customers and retaining old customers is always the biggest “battle” in the company’s business strategy. It can be said that retaining old customers and attracting new customers are both very important to the company. However, why should businesses focus on keeping old customers?

• Firstly, when comparing attracting new customers and retaining old customers, it will be easier to retain old customers, lower costs, and above all, businesses will have an additional set of loyal customers.
• Second, for loyal Customers, the product price does not matter or cut some of the accompanying incentives, Customers will still stay with the Business.
• Third, the fact shows that only 20% of old customers have generated more than 80% of sales for the Enterprise, new customers have more choices and easily give up the business, but this will not happen for Loyal Customers.

In addition, in an era of increasingly fierce competition when old customers become loyal customers, the brand value of the Enterprise is increasingly affirmed through “word of mouth culture”. Existing Customers will not only generate revenue but also attract more new Customers for the Business.

So how will the customer lifetime value play out?

To put it more simply, Customer lifetime value is the revenue that a Customer will generate during their lifetime. How to calculate the lifetime value of a Customer, according to Actioncoach we have the following spreadsheet:

(Average value per sale) X (Number of transactions) X (Average customer retention period in 01 month or 01 year of a typical customer).

Example for the consumer goods industry: Customer A spends the cost of buying washing powder twice a month continuously for a year, the average order will be 200,000 VND. So the lifetime value of Customer A is 200,000 x 12 months x 2 times = 4,800,000 VND in a year.

That is also the reason why a series of businesses have many attractive incentives for old customers and try to retain customers as much as possible.

So How To Retain Customers Most Effectively?

According to the research of experts in the retail industry, there are many different ways to retain customers, but some of the following ways will help businesses get the most effective strategy:

Optimize product quality

This is the first thing Customers come to the Business, if you do not provide a good product, no matter how good the service is, the Customer will not stay with the Business. Create more new features in the product, new product, or combine product features together. Besides, product quality also depends on a strict sales process, ensuring products with clear origins and detailed product information.

In addition, for retail stores, consumers will want to go to a place where they can buy more than one, products must always be displayed in front of them and easy for them to choose. All of the above to create a good product.

Implement the Loyalty Program

For Customers in the field of consumer goods, who want incentives from VIP members, membership cards will be one of the most effective programs. Besides stimulating demand, we can increase Customer’s shopping pleasure through special promotions that apply only to loyal customers.

Create a surprise for old customers

Customer information is the first thing the Enterprise needs to store, once the Customer’s information is complete, the Enterprise can send messages on some special occasions such as birthdays, big holidays of the year, etc. to customers. Customers feel that the Enterprise cares about each Customer and will be more loyal to the company. This will be easy with the sales DMS distribution system report.

Send Emails To Customers, On Time, Right Products

The fact that Customers receive too many promotional emails makes them not like to introduce products via email. However, we can be more skillful when the Enterprise has the purchase history of the Customer, based on which we can recommend products at the right time of use. Customers will be more interested when we send a series of products.

Always listen to customers

Always listening to and resolving customer complaints will be the best way to retain them, and bring comfort and convenience as the “guideline” for the enterprise to grow.