|Having a solid customer retention rate means a number of things. First, you don't have to worry as much about maintaining your overall bottom line. While you should always be working to make sure that your financial health is in check, knowing you have consumers to fall back on can give you peace of mind. Next, a high customer retention rate also means you have room to grow. With one less thing to worry about, you can shift your focus to developing other ways to expand upon opportunities for further success.
One way that you can grow your business, as well as your client base, is through customer referrals. Entrepreneur.com says that referrals are among the biggest, most effective methods for boosting sales and nourishing your overall bottom line.
There are a few ways that you can utilize your loyal client base to encourage their friends to do business with you. First, it's crucial that you get into the habit of politely mentioning customer referrals at your storefront. For instance, turn a compliment from a client into an opportunity. If a consumer tells you they like your products, thank her and ask her if she has any friends that might also enjoy similar goods and services.
Even if this doesn't automatically turn into a referral and another customer for your small beading business, your hard work will eventually pay off. The more people you reach out to, the greater chance of them remembering your kind words and mentioning you to a friend.
"Make sure you understand expectations in great detail and follow up after the sale to ensure that your customers are seeing the results they should expect," Jeff Thull, the CEO of a strategy and consulting group, told Inc.com. "If the customer is pleased with how they have been treated and served, and with the value they've received, they certainly will be more willing to attach their name to you and your solution. They will be proud to be seen as the source of a great idea."
Remember to avoid limiting yourself to just customers, too. For example, have you ever thought about how many of your own family members might enjoy your products? Even if they have no use for your goods and services, they may still be willing to put in a good word for you with others.
When asking for a customer referral, it's also important to be as specific as possible about your intentions. For instance, make sure you tell your clients exactly what you're looking for: other people who may have a strong interest in beading. This may range from older women to men who are looking for the perfect gift for the woman in their lives, depending on your target audience.
Aside from making the obvious move toward customer referrals by asking for them, there are other things you can do in order to boost your client base and sales. First, it's important to make sure that clients are always satisfied with what you're bringing to the table.
While it's crucial for you to ensure the quality of your products, it's also important to make customer satisfaction a priority. This means putting a smile on your face and treating each consumer special. Even if they don't leave with anything, they'll be more than happy to return.
Another way that you can increase your number of customer referrals is through discounts and promotions. This means rewarding your loyal clients for their word-of-mouth recommendations. For example, you can offer a 10 percent discount on your goods to individuals who bring their friends in to shop at your store. It's a simplistic idea, but it can pay off.
Don't forget about social networking as well. Use your Facebook, Twitter and Foursquare accounts to show off these promotions and make sure you're spreading the word. Although it may seem like a lot of effort, you'll be glad you did it when you see an improvement in your bottom line.
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