Customer retention is one of the important factors for every business – be it an SME, MSME, or even big business. However, many people think that big companies mostly have better customer retention. But statistics show that small businesses tend to have better customer retention, mainly because of the personalized products and services offered by them.
Now that the SMEs in India have better customer retention, there are some measures that can be taken to increase customer loyalty even more. Being an SME owner, have you ever thought of deploying programs that can drive more customers to your business? Customers usually find these programs interesting and this encourages them to return to the business to fulfill their needs.
Read the following tricks that can help you retain the customers for your SME:
User-Friendly Loyalty Program
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Customers usually like being involved in loyalty programs and groups. It makes them feel associated with the business. However, no one likes a cumbersome and lengthy process. So, it is advisable to keep it is as simple as possible. You can ask for just a few details including name and contact details that do not take much time.
To make it more interesting for customers, you can add offers like – sign-up now and get a voucher for free worth Rs. XYZ. Or maybe on joining today, get 20% on your first 5 purchases. When no cash is involved, customers tend to feel they are saving money.
Referral Program
also read: why you need to get started with customer referrals
If the customers love your product or service, they will definitely tell their family and friends about it. Good word of mouth also helps in building customer retention. The friends and family members will check on your product and the potential customers can turn into an actual customer.
So, a referral program can be very good for your SME in India. You can provide incentives to the customers who refer your business. This will help in letting the customers know the advantages of being referred via a phone call, SMS, or email.
Get the Customers Involved
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Getting the customers involved in your small business is a good idea for the growth of the business. Getting them involved does not mean making them a part of business finances or operations. Customers are the best critics of the products and services provided by you. They can provide you with honest opinions and those opinions can make your SME business better.
So, it is advisable to listen to your customers, take their feedback, and implement it in the business. You can consider setting up a feedback/suggestion box. The customers can put their ideas to help you improve your products and services.
Provide a Pleasant Experience
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The main motive of every business is to increase sales. But you can design this process in a way that it brings customer retention as well. You must concentrate on the product or service offered by you – it brings you the business and you must take care of it. The SME owner must be knowledgeable about the product and understand what its best features are. He must also have a great understanding of the industry.
In general, when a new customer visits you, they ask for suggestions on which product or service will be the best for them and which they should purchase. When the seller has a proper insight into the product, the customers get a sense of security. Also, if some product is not right for them and by telling truth about the same, the customer’s trust increases. And all this eventually passes to customer purchasing something.
Complementary Products
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The aim of every SME in India must be to become a one-stop shop for everything that the customer might need or want. For instance, let us say that you have a business of mobile phones. One of your customers wants to buy a mobile phone. Upon buying the mobile phone, he might want other mobile accessories as well. You can consider providing all the mobile accessories at your shop.
In addition, you can order the same products from another manufacturer and sell them to your customers. This will help your customers to get all the required things from one shop at their convenience and they will not have to visit another shop. This gesture is a sure shot way to customer retention.
Understanding the business well and offering offers that attract customers will help to grow your small business. It will also help run the business efficiently and increase customer retention in a cost-effective way. In addition, listening to the customers and converting their feedback into action will keep them happy while you will keep your business running. A business caring about the customers will definitely make them return to you.
In case you lack money to run your business or for its growth, you can avail an SME loan. There are many SME loan lenders in India who offer business loans at the best interest rates in the market.
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