Smart Emmanuel: How to Retain Customers in a Competitive Market

In today’s highly competitive business environment, retaining customers who are constantly lured by lower prices, innovations, and additional offers from competitors can seem like a daunting task. However, it is not impossible. One of the best decisions a business can make is to take intentional steps to retain its customers. The cost of customer acquisition is on the rise, and competitors are doing everything they can to attract your best customers. Customer loyalty is not something that can be achieved without effort; it requires intentional activities designed to keep the customer happy and prevent them from switching to a competitor. There are ways you can increase your chances of retaining your best customers.

Understand what customers truly want

As an entrepreneur, you might think that a simple survey would be enough to find out what your customers want. However, sometimes customers might not be able to articulate their needs and wants clearly, so relying solely on surveys might not give you the answers you need. Instead, you should study your customers’ patterns and behaviours to better understand what they want. Actions speak louder than words, and what your customers do reflects who they truly are. For instance, even if a customer says they prefer home delivery, if they always end up going to your competitors’ physical store to make purchases, it means that they value the experience of going to a store more than home delivery. It’s crucial to understand your customers, their needs, and their desires so that you can provide products and services that truly meet their expectations. Many businesses make the mistake of misinterpreting their customers’ needs and wants, which can lead to losing customers to competitors, despite their best and sincere efforts. Don’t let this happen to your business.

Genuinely give free value

The first thing that comes to the mind of a business owner is cost. This doesn’t have to have a great financial cost but it must be useful and valuable to the customer. The customer meets several business owners, salespeople, and marketing teams trying to get money out of customers. The customer knows most of these people don’t care beyond the sale. The smiles, gestures, and kindness aren’t real to the customer. It’s all part of the process of winning and retaining a customer. However, the customer has real needs beyond the sale and any business that focuses on solving this will be seen differently. For example, if your customers are market women who need access to loans, organising a seminar on how to secure real funding and helping them facilitate the process with the help of your accountant places you far above others. Do this kind of good even when they have moved to competitors and don’t try to sell your products at the event. Focus on the value you are giving. They already know what you sell because they are your old or current customers. If you’re into tech and your customers/users are young people mostly seeking employment, you can create a free app that helps them improve their resume and land great jobs. This kind of good places your brand in a special place in the customer’s heart and sometimes this is what determines the customer’s buying decision. It’s important to note that this must be done genuinely and without an agenda and customers shouldn’t be gaslighted for enjoying your package and not signing up with you or moving to another customer. This can take time but eventually, a fair percentage of customers will decide to stick with you. Those who move to competitors should be allowed to continue to enjoy the benefits, when it’s time to make a shift, you will be the first on their mind.

Ask questions and be flexible

It is important to be flexible and open to negotiation when dealing with customers. If a customer decides to leave, it is best to engage with them in a non-aggressive manner. Rather than seeking sympathy, express gratitude for their past business and ask for feedback on how you can improve to prevent future customers from leaving. This approach will make the customer feel like they are helping you, and they will likely provide valuable feedback on areas that need improvement, such as pricing, quality, staff, or customer experience. Avoid being defensive and remember that you are seeking honest feedback to improve your business. If there was a misunderstanding, politely apologize for how it made the customer feel and share your perspective. If you can offer a special deal to the customer, consider doing so as it is often more cost-effective to retain an existing customer than to acquire a new one through promotions.

 

***

Featured Image by Ketut Subiyanto for Pexels