This January, the Entrepreneur Weekly is all about helping you to put plans in place for growth in 2025. But here’s the thing, when it comes on to business, growth isn’t just about gaining new customers – it’s about keeping the ones you already have. After all, this can significantly impact your business’ profitability. Customer retention is an often-overlooked element of marketing that can make or break a business, and with the high costs of acquiring new customers, focusing on retention is more important than ever.
As Professor Sunil Gupta from Harvard Business School points out, “Acquiring new customers is costly. It costs far more to acquire a new customer than it does to retain that customer.” So, how can Micro, Small & Medium-sized Enterprises (MSMEs) boost customer retention in 2025? Here are five actionable strategies:
1. Personalise Your Customer Experience
Customers crave a personalised experience. They want to feel like they matter, not just like another transaction. By leveraging customer data, you can tailor your communications, offers, and recommendations to their preferences. Personalised emails, birthday discounts, or follow-up messages after a purchase, show customers that you’re paying attention to their needs.
In fact, “Personalisation enhances retention, increases customer satisfaction, and helps your brand stand out.” (Harvard Business Review)
When customers feel that a business “gets” them, they’re far more likely to stick around.
2. Build a Rewarding Loyalty Programme
Loyalty programmes are a proven way to encourage repeat business and increase retention. Offer customers rewards for continued purchases, whether that’s points that can be redeemed for discounts, free products, or access to special events. Keep your rewards simple and attainable; a system where customers can see their progress motivates them to continue engaging with your brand.
Loyalty programmes don’t just retain customers, they can also turn your best customers into brand advocates, helping you spread the word about your business.
3. Provide Consistent Quality and Excellent Customer Service
Great customer service should be a non-negotiable part of your business strategy. From responding to questions quickly to resolving problems efficiently, offering excellent customer service builds trust and loyalty. Make sure your team is well-trained, friendly, and empowered to solve customer issues in a timely and professional manner.
Consistency in product or service quality is just as important. When customers know they can rely on your business to meet their expectations every time, they are far less likely to go elsewhere. Whether you’re offering a product or a service, ensure your quality never wavers, and customers will keep coming back.
4. Engage with Your Customers Regularly
Staying connected with your customers through regular communication is crucial for retention. Regular updates via email newsletters, social media posts, and even customer surveys keep your brand at the forefront of their minds. Plus, these touchpoints allow you to stay updated on their preferences, which you can use to enhance your offerings.
Don’t forget to ask for feedback regularly. Customers appreciate knowing that their opinions matter. Whether it’s through online reviews or direct surveys, asking for input gives you the opportunity to improve while making customers feel heard and valued.
Remember that you are building a brand, and “brand building requires consumers to actively participate and assume a sense of ownership over your brand’s story,” according to Harvard Business Review.
5. Act on Customer Feedback
Retaining customers isn’t just about making them feel valued—it’s about showing them that you’re listening. When customers take the time to offer feedback, whether positive or negative, it’s crucial to act on it. Implement changes based on their suggestions, and let them know that their feedback has had a real impact.
Responding to negative feedback positively, by making necessary improvements or offering resolutions, can actually turn a dissatisfied customer into a loyal one. It shows that you’re committed to creating the best possible experience for them.
GROW WITH JBDC
Growth is on your mind as you make plans for 2025. If you can master the art of customer retention, you’ll set your business up for sustainable growth and long-term success. The Jamaica Business Development Corporation (JBDC) acts as a resource centre for entrepreneurs by answering queries, providing information such as details about the business environment and other institutions within the ecosystem that business owners need to know about. The team will assist with information that allows clients to build and grow their businesses. We will walk with the entrepreneur through recommendations relevant to their specific stage as well as provide insight on next best steps. Visit www.jbdc.net to start your journey with us.