Customers are the most important assets to a business. When a business first starts, it mostly focuses on gaining the customers but in doing so at times forgets that the customers should be retained. but due to this focus there are some problems. the company may gain a lot of customers, but it would invest heavily in gaining customers rather than keeping the customers to themselves. through that it messes up aspects of a business which is customer retention.
Customer retention is very important for business because retained customers are the most profitable segment for a business and due to word of mouth they can tell other customers to buy from that company. Repeat purchases ensure that companies may have a higher gain from each customer that they business has relation with.
A KPI that lot of places use is customer lifetime revenue, this shows what can be gained in a lifetime potentially from a customer who would do repeat purchase from the company. Customers have to be followed up so that they can be ensured to buy the companies products again.
It has been found out in a study that customers tend to forget about the company if the company doesn’t follow them up or doesn’t contact them in the future and because of that that might result in lost sales.
The main benefits of following up could be summarized in the following points which are:
The most important aspects of following up is that customers can be enticed to buy again from the company if they were satisfied of the product and in case they aren’t satisfied they can be asked for feedback or if the company can do anything better for them. This allows the company to invest less in marketing and more in the product itself so it can gain a competitive advantage by customer retention.
At times a customer might not be enticed to buy the product because of indecision because they were thinking about buying the product in a future time. But consumers forget about the product after they left the shop or the product page. The company should as such contact the customers in this sector so that those revenues can be insured and that is why following up is so important.
Today’s companies are getting more and more competitive and just a product would not be able to garner the attention of customers. The customer’s experience in the product and the company is much more important than the product itself. When a customer is followed up in a later time it shows them that the company cares about their opinions and that their opinions are heard and that is a crucial aspect for customer experience. If their experience is good, they would want to purchase from the company again even if the product was not as satisfactory as they would want to but because of the following up through the channels they would be more enticed to buy from that company.
Today’s market is getting increasingly competitive, and more and more companies are getting into profitable markets for long-term gains. In this market, the consumers have more choices to pick their products from and they get attracted to companies which offer superior customer experience. If the customer if followed up, they will remember the company more, they will understand that they are valued in this company and their opinions will be heard. In this case the following up can be seen as a competitive advantage for the company.
If customers are followed up, information about the companies product and their issues or how they can improve can be found out if the customers are followed up. Companies can improve their products, make the customers experience better and achieve feedback through that.
So, to bring your business closer to the consumer and more profitable in the future there is no alternative to following up your customers.