Client Retention In Recession- Getting Your Business In Survival Mode
The worst time for any business is a recession, like the once they are facing during the COVID-19 pandemic. Customers come in a trickle, revenues dry up and profits seem non-existent. Your first reaction in such circumstances would be to cut down the marketing spend but that can aggravate your problem even further. The best approach would be to focus on customer retention because holding on to the existing customers is easier than acquiring new ones during the crisis. But when it comes to client retention in recession, it requires you to think beyond the measures you would ordinarily take. Here are some strategies that can help your business get into the survival mode and make it through the crisis.
Create loyalty programs
Recession or no recession, the best way to retain your customers is by appreciating their loyalty. Consider creating loyalty programs to reward the people who have stayed with you through the thick and thin. The idea makes even more sense in the crisis because it has the potential to boost sales in addition to making people stick around. Offer discounts based on the frequency and value of past orders. You may provide them coupons on the new purchases. Another good idea is to provide services such as free delivery or extra warranty. However, ensure that you don’t topple your revenues while designing the loyalty programs. Just keep them in budgets and you will be able to make the buyers stay through the recessive period.
Add value to customer experience
Nothing matters more than customer experience when it comes to keeping them hooked to your brand. Being proactive with your value proposition is a good measure if you are looking to focus marketing on your existing customers during such tough times. Consider innovative ideas like adding a bonus product or service at the current price point, providing free training resources, and being available with proactive customer support. There isn’t a better way to impress them than to enhance the quality of your product and services. Leverage social media to stay connected and engage them even if they don’t buy.
Consolidate trust and relationships
An economic downturn is challenging for both buyers and businesses. This is the time when people are anxious and they look for support. Take the opportunity to consolidate trust and relationships with the existing customers. If you sell essentials, consider giving them a marginal price drop if possible. Calling customers and having a conversation about their situation shows that you care. Also, it gives you a fair idea about their expectations so that you can realign your plans accordingly. Start a blog and share informative posts with insights that may help them to get through the crisis. The trust you earn and the relationships you build during tough times are bound to keep them with your brand forever.
Client retention has a lot to do with the success of any business in normal times but it becomes all the more crucial during a challenging season and recession. Making special efforts to retain what you have can give a lease of life to your company and keep it afloat now and in the future. Review your company procedures and consider these ideas to help you work at improving your customer retention.