Customer retention marketing
Recruiting new customers costs five times as much as retaining current customers.
Customer loyalty is more important than ever and can make a massive impact on your business.
The Importance of Customer Loyalty for Your Business
If a customer has previously made a purchase from your company, there is at least a 60 percent chance that the customer will make at least one more purchase. Meanwhile, if a new visitor clicks on your site, the chances of that person becoming a paying customer are only 20 percent at the most.
Quality of service is essential for customer retention. 31 percent of the time, customers switch service provider because they found a new company with better prices. 34 percent of the time, however, they switch because they are dissatisfied with the service at the old company.
Despite the importance of customer retention, less than a third of business owners consider it a priority.
The Financial Impact of not focusing on customer retention
If you offer a £25 discount to retain an existing customer, it would cost £125 to attract a new one.
It is costly to attract a new customer than simply to cultivate the loyalty of an existing customer.
Efficient, courteous customer service is important for customer retention. Numerous studies show that customers end their relationships with companies because of poor customer service.
Why do we spend so much money on customer acquisition marketing when customer retention marketing works so much better?
And yet we find ourselves spending most of our marketing budget on finding new customers instead of nurturing the ones we already have. Yes, your business needs new customers, but not at the expense of the ones you already have.
Be committed to providing more customer service excellence than anyone else in your industry.
Case study MOT Garage
MOT Guarantees offer an excellent opportunity to improve customer retention rates as customers not returning to you for their next MOT could potentially mean lost service and repair work.
The customer receives a guarantee that, following an MOT test failure due to one of the listed parts, that part will be replaced free of charge.
MOT Test Insurance covers the costs of repairs or replacement of parts, including the labour and VAT, provided they are shown as having failed the MOT standards on a Refusal to Issue an MOT certificate (VT30) Form.
How can we implement this strategy for your business?
Using your existing CRM system, we will email customers 90 days prior to their MOT becoming due offering a pre-paid MOT option that includes the guarantee.
We will then collate and administer the incoming purchases leaving you free to focus on your day to day workload.
What are the benefits to the MOT garage?
Customer retention would increase in number reducing dependency and cost of continually attracting new customers.
The cover is only valid at the supplying garage ensuring that the customer books the MOT 90 days later.
Improved forecasting with payments made 90 days in advance.
Repair cost paid directly to the garage following submission of a claim.
No increase in staff cost.
Merrow, Guildford, Surrey UK
Tel: +44 (0)1483 511 063