Did you know that it has been estimated to cost businesses around five times as much to attract a new customer, as it does to keep an existing one? This is why it’s so important to focus on retaining your current customers by offering ongoing value while building loyal relationships with them. Doing this offers you a range of benefits, including avoiding those expensive and effort-intensive prospecting and acquisition costs.
If your business is already utilising recurring direct debit payments, then you’re certainly on the right track. Here’s how to get the most out of your current customer base to help unlock stronger growth potential.
Why a customer focused approach to retention is essential
When a business puts the customer first, it means that they start with identifying their needs and build outwards from there. So, it’s not about making a customer’s needs fit the product, but the product to fit the customer.
This is so critical to success today because, in our digital age, there is an abundance of information and choice. If your offering doesn’t fit your customers’ needs on their terms and to their preferences, they will search elsewhere. After all, it’s just a click or two away.
An organisation that puts their customer at the core of what they do means that they will strive to build healthy and profitable relationships on an ongoing basis, by providing them with a positive experience each and every time.
How to tell if my business is customer-oriented?
The tell-tale signs of customer-oriented businesses are that they put an emphasis on:
- Truly understanding their customers
- Adapting to their evolving preferences
- Putting their needs forward as part of the business plan
- Providing a personalised and tailored experience
- Showing appreciation for their customers’ ongoing loyalty
- Measuring customer satisfaction as part of their success indicators
- Maintaining strong customer service and after-sales support
This approach leads to positive word-of-mouth, longevity and a favourable reputation in the market, all of which are conducive to business profitability and growth.
The reality is, if your customers are displeased with their experience with your business, they will head towards a competitor who is better at it. Then, to remain in business, your organisation is forced to spend more on trying to attract new customers, and it quickly becomes a downward spiral.
All of this highlights the importance of focusing on your current customers to keep them happy. So, how is the best way to do this?
How does direct debit billing help with customer retention?
A business which utilises recurring direct debit billing for their customers in exchange for regular products and services naturally fosters customer-retention.
This is because you are already providing ongoing value. Services like the fitness training and utilities, and products like wine and shavers, are all examples within industries that effectively retain their loyal customer base by offering them an ongoing relationship.
This model, which is referred to as Subscription Billing, removes all of the hurdles and inefficiencies around prompting audiences to make a repurchase, and instead, shifts the focus on nurturing customer relationships instead. In the end, these Subscription Businesses build their long-term client base and retain them effectively through continual and personalised service.
How do I keep growing my Subscription Business?
Successfully retaining your customer base with subscription billing lays strong foundations for future business growth and expansion potential.
To learn more, download this free eBook, The 6 Steps to Creating Subscription Success, which will guide you step-by-step through how to effectively implement and manage your recurring direct debit payment collection in the right way.
Unlock your business’ true potential with subscription billing, and turn customers into loyal advocates.