Companies often generate most of their profits from repeat customers. One study from Think Impact shows that 65-75% of business comes from retained clients. Improving your customer retention by just 5% may lead to a jump in profits by 25-95%.

According to a post on the Mailchimp blog, you can track three key metrics to determine where your company stands in terms of customer retention. These metrics include what percentage of customers buy more than once, how often they buy from you and the amount of their average order value. While customer retention strategies vary by business, there are many ways you can work to build customer loyalty and grow your profit margin.

In this issue of Promotional Consultant Today, we outline some strategies featured on the Mailchimp blog.

Maintain a customer communication calendar. This is helpful when you want to re-engage customers. You can send them info on new products or special offers. You could also acknowledge milestones like birthdays.

Send an email newsletter. According to the Mailchimp post, email marketing can lead to major ROI — an average of a $42 return for every $1 spent. Plus, showing up in customers’ inboxes is a great way to stay top of mind.

Start a customer education program. This strategy can help boost customer retention because you are helping your clients succeed. Whether you are teaching them how to get their name out a community event or celebrate employees with promotional items, this kind of education keeps people coming back.

Refresh your customer service. You can improve your customer retention by making it easy for buyers to get in touch with you. For example, if you don’t use chatbots or include a comprehensive FAQ section on your website, you may want to consider adding these to your customer service offerings.

Deliver on your promises. Remember that consistency builds trust. The Mailchimp post says that customers appreciate a business that reliably delivers on its promises.

Address mistakes quickly. You can gain respect — and repeat business — by acknowledging your mistakes and correcting them promptly. Many buyers will leave a company after just one bad experience, so be ready to fix errors.

Add value. The Mailchimp post points out that customers remember and appreciate a positive experience. Some options for adding value include events, contests and vibrant customer communities.

Request and share positive feedback and testimonials. Social proof is a powerful persuader. According to the Mailchimp post, 88% of customers trust online reviews as much as they trust referrals from friends and family. Plus, asking for feedback can help establish an emotional connection with your customers.

Reward customer loyalty. To boost customer retention, give buyers more reasons to work with you again. You could offer a first look at new products or send them branded merchandise to thank them for their business.

Winning someone’s business is no small feat. When you apply the strategies above, you can help ensure your customers have the best possible experience and keep returning to you time and time again.

Compiled by Audrey Sellers

Source: The Mailchimp blog. Mailchimp is a marketing automation platform and email marketing service.