Customers are the king of the market and an integral part of every business. Customer satisfaction should be the mission of every businesses, this can be done by building customer relationships. Customers will pardon you for honest mistakes provided you have relationship with them.
It is the customer who influences the marketing and production of the firm. Customer relationship describes the way that a company engages with its customers to improve their experience. To have growth and retention of your business, developing a relationship with your customers is one of the most effective strategies a business can adopt.
Here are some stats you must know:
- Acquiring a new customer can cost five times more than retaining an existing customer.
- Increasing customer retention by 5% can increase profits from 25-95%.
Customer engagement is the sum total of all customer interaction and experience. It is a way of nurturing a positive relationship with your customers.
Some of the benefits of nurturing relationship with your customers are:-
- Business Growth:- you can grow your small business in two large companies by having an excellent customer relationship. Did you know as a study there are only 5 to 20% chances that sales are made by new customers while 60 to 70% of sales are made by existing customers? Therefore it is essential to create customer engagement for having long term business existence.
- Creates Loyalty:- By investing time on your customers to know them, listening to them, answering their queries, serving them to the best of your abilities, it would encourage them to repeat business sales and would also become loyal customers of your business.
- Reduce Cost:- You need not spend much on marketing strategies if you have a well-established client base, this would reduce your overall cost. By the recommendation of your existing customers, you can attract a large bunch of new customers.
The top 5 ways by which you can build better customer engagement are:-
Know your Customers
Each and every customer is important for your business. Try to bring out some facts about them during interaction so that you can better understand them and provide them with the goods and services according to their needs. You should listen to them and cater their needs in the way they want, not in the way you like as this would create a bad impression thus leading to the end of business relationships. One should never deal with the customer without studying them. For example, if you sell clothes you should first try to know the tastes and preferences of your customers so that you fulfil their needs and satisfy them.
Admit Mistakes and Resolve Them
Usually, the majority of businessmen never admit their mistake, which would create a negative impact on your business in the mind of your customers. Businesses are operated by humans, and no one is perfect one can make a mistake at any point in time, but you should acknowledge your mistake and take immediate action to resolve them. One should not make mistakes deliberately.
For instance, the new model of WagonR had some problem in one of its parts. Maruti Suzuki instantly acknowledged their mistake and replaced the part for free of cost. This not only improved their reputation but also created confidence in them, as a result, it improves customer relationships.
Add Value to the Customer’s Business
Want to be a horse of different color? Then add value to your customer’s business as the preponderance of the vendors do not do so. Giving something additional to your customer that would help in the business operation and the growth of their business, in turn, would increase motivation and satisfaction of your customers, leading to building a long term customer relationship. For example, medical store owners are given some gifts by few companies if they purchase more than a certain limit this impel them and also enhance customer engagement.
Connect with your Customers
Connect with your customers and try to understand their needs, take feedback from them and act accordingly. Communicate with them and try to tell your customers how much you care for them as effective communication is significant for a sound customer engagement. Do try to make your customers feel special by sending a thank you note, asking for suggestions, wishing on their birthdays etc. You can learn from Pantaloons that they send a message on birthdays with a discount coupon to the Green Card Holders.
Appreciate your Loyal Customers
You should retain your loyal customers as they are like an asset for your business. As per a study recommendation by a loyal customer is 76% better than any other medium of advertisement. You can treasure your loyal customers by offering them freebies, special discounts, premium services, giving them early access etc like Amazon gave one-day early access to the prime members during the great Indian sale. This gesture delights your customers and helps you to have a long term standing in the market.
These are some of the ways that you can adopt to build a relationship with your customers.