Although with good intentions, many limousine companies focus on gaining new clients as opposed to retaining them. According to experts, getting new clients is actually far easier than keeping them, which, in some instances, leads to failure.
1. Never Underestimate the Value of Retention — The one thing that limo entrepreneurs should never do is underestimate the importance of retaining clients. For growing a profitable company, this is imperative. For example, a 5% increase in client retention will increase profitability by a whopping 75%. In addition, as much as 80% of a company’s future revenue is the result of retaining just 20% of current clients. Something else to think about for limo marketing is that it will cost up to 5 times more to secure new customers than to keep them.
2. Have a Customer Retention Program — Remember, it takes more to retain clients than having an outstanding product or service, along with providing superior customer service. This might work initially, but it fails over time. The reality is that your clients’ loyalty is not mandated. Therefore, you need to earn each client that you have on a continuous basis.
To identify, track, and make customized promotions for your limo clients, you want to implement an effective customer retention program. When first starting your business, this may not be necessary, but as the quality of service and support improves, it becomes essential.
3. Don’t Misread Messages — You also need to understand your clients. In a recent survey, 80% of participating companies felt strongly that their customer service was exceptional when, in fact, only 8% of clients agreed. Four years ago, IBM conducted a customer relationship study and discovered that very few clients followed it on social media sites based on purchases and discounts. By misreading your clients, you miss huge opportunities.
4. Utilize Social Media — Rather than push corporate presence, use social media sites to build a more personal relationship. This provides clients with a platform for voicing opinions that help network and build your company. Identify the clients that will be most loyal and then create personalized messages specifically for them.
5. Create Relevant Promotions — You can also build your business through relevant promotions. Considering that 80% of future revenue comes directly from 20% of existing clients, promotions are an excellent way to retain customers since they get actively involved with the brand.
What’s The Bottom Line?
If you communicate with clients as a way of engaging them and to meet their needs and expectations more effectively, you will find that customer retention is easier.
Regularly communicating with your existing clients with customer satisfaction surveys and having a reliable and easy to use CRM to manage interactions is a key component of retaining clients. Want more information on our customer retention products? Call us toll free at 888-580-5567 or email us.