Retaining customers is one of the biggest challenges new startups have to face.
Credit: Customer retention image via Shutterstock
As a startup, gaining new customers is only half the battle. Earning those customers' trust and getting them to come back to your company can sometimes be even trickier than convincing them to try your product or service in the first place. With an ever-increasing number of competing businesses and savvy consumers, lack of product variety and poor marketing strategies can make it tough for a small business to stand out from the crowd.
As a former e-commerce entrepreneur, Jerry Jao is no stranger to the problems startups face in retaining customers. His latest venture, Retention Science, is a marketing firm designed to address this very issue.
"I started Retention Science to solve a problem I ran into as a business owner," said Jao, co-founder and CEO of his company. "It doesn't matter who you are or what you're selling. All customers are researching on sites like Amazon and eBay, which makes it difficult to compete." [How to Provide Better Customer Service]
To keep your customers coming back, Jao recommended employing these three strategies in your small business:
- Really know who your customers are. Sales records tell companies what their customers purchased and how much those customers spent. In order to earn repeat business, however, you have to dig deeper into the data about who your customers are, and market to them based on that information. Knowing your customers' ages, locations and exactly how your product affects their lives can help make your marketing tactics more targeted. This, hopefully, will provide a better experience for your customers.
- Pay attention to what's selling and what isn't. Retaining customers is all about providing continued value to your buyers. Survey customers frequently to find out which of your products they like and don't like, and what they'd like to see from your business. With that information, you can eliminate products or services that aren't selling, to make room for ones that will.
- Don't bombard existing customers. One of the biggest mistakes companies make is trying to communicate with their existing customers too frequently. Retention Science reminds its clients that people are not constantly looking for information from the places they shop. Finding the right balance of frequency and communication style is key to an effective marketing strategy. Pushing information at your customers too often can become annoying, and end up driving them away.
Originally published on BusinessNewsDaily.