One of the most common mistakes small-business
owners make is to focus so much time on attracting new customers that they skimp on the effort it takes to create loyal customers. That’s a mistake, because it’s more expensive to get new customers than to retain them. To develop and nurture a relationship with your customers, you have to communicate regularly and, above all, provide consistently over-the-top service.
For a story for Entrepreneur.com, I took a look at how three small businesses are keeping the customers they worked so hard to attract. One business uses a low-cost online service to send automatic emails to some 400 customers at any time, whether it’s to wish them a happy birthday, congratulate an anniversary or simply thank them for their loyalty. Another lets their customers watch the progress of their work in real time online. And the third uses Cardagin, a mobile loyalty and customer retention program, to send special offers to customers on their smartphones and reward them with loyalty points.
Other small businesses can mimic these smart customer retention ideas in order to keep their customers coming back. They all involve use of new technology, and for that, these small business owners should be applauded for their innovation.