Keeping existing customers loyal

Attracting new customers can be an expensive business. Yes, it's exciting when a new client comes on board. Yes, there's the thrill of the chase, the satisfaction that comes with making the sale.

But the fact is that it costs around eight times less to hold on to an existing customer.

That got your attention didn't it?

Keeping your existing customers loyal to your business is around eight times cheaper than going out and selling to new people. Therefore, it makes perfect sense that you should do everything possible to keep them happy.

So what can you do to encourage your customers to continue buying from you?

If someone makes an enquiry, make sure you respond, even if it's to say 'sorry but that's not something we can do'.

If someone places an order, acknowledge receipt quickly so they know that everything has gone through correctly. If you sell online, you can use the auto-reply feature in your e-commerce package; if your sales procedure is a little more basic, an email will suffice.

When it comes to returns, again, you need to contact the customer to let them know you have received it once they arrive. And complaints also need to be dealt with in a friendly, professional and timely manner.

The old adage, 'under-promise and over-deliver' is true – you want to make sure that you live up to customers' expectations. Make sure you can fulfil orders on time, deliver a service in the way you've described, and have the knowledge and information they're looking for.

Give them a great experience and they're going to not only buy again from you, but also tell their friends and family about your business.

You may have a few staple offerings that have served you well for years. However, it is important to stay up-to-date with any trends that may have an impact on your business.

New products, updated services, competitions, offers, timely news – they all keep you looking fresh and interesting, which keeps your customers interested in you.

Like it or not, you can't be perfect all the time. If you make a mistake, rectify it in a efficient, professional and friendly manner. Do what you can to ensure the customer knows you are sorry for any inconvenience, and that you are doing your best to rectify the situation. Customers will appreciate a call far more than an automated message and a discount or small gift will work wonders.

Problems don't have to be 100% negative – think of a complaint as an opportunity to learn more about how others view your products and services. For example, if a certain product is consistently complained about, perhaps it's time to update, improve or remove it from your product list. It is also the chance to put your customer service skills into practice.

Remember too that you need to put up a united front. Even if another member of staff has made an error, it's all about remaining positive rather than critical. Apologise but don't criticise your colleague.

Once a business seems to be ticking over, it's all too easy to become complacent. Don't – stay proactive or before you know it, that sales pipeline has dried up.

It's important to continually review your service by carrying out regular customer satisfaction surveys. This doesn't need to take much organisation – all you need to do is call or email a selection of customers to ask for their feedback.

In certain industries, utilising the services of a mystery shopper could provide you with an insight into your customers' experience when buying from you.

Too many times we hear about massive discounts for new customers, while long-term customers get nothing. Why should they stay loyal when they could make substantial savings buying elsewhere?

Why not set up loyalty scheme that features unique rewards for people that continue to buy from you? Offer discounts based on the amount of products they purchase, two for one offers, free gifts etc. It is important to remember that you shouldn't then offer the same rewards to first time customers – if you do, it's likely you will alienate your longstanding customers.

Customer retention may not be as exciting as the thrill of landing a big client, but it really is the foundation of any successful business. Look after your core customer base and they will look after you. It really is as simple as that.