3 Simple Profit Increasing Techniques

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It is a well-known fact that customer retention is much more cost-effective than paying out the wazoo to acquire new customers but did you know that according to a study conducted by Harvard Business School, increasing customer retention rates by 5 percent increases profits by 25% to 95%?

Retention translates to increased profitability quite simply: loyal customers come back often and refer their friends and family. 78% of customers surveyed by Clickfox say they show their loyalty to a brand or company by telling others about them.

Exceeding expectations is a big loyalty winner in the contracting biz. All contractors, remodelers, and service professionals promise quality, expediency, and competitive pricing but customers expect those things from all the contractors they might potentially work with. It’s the status quo. To go beyond those universal expectations will allow you to stand out from the competition and create a memorable buying experience that keeps your company front of mind.

The research proves that customer retention is not to be underestimated or ignored by business owners. But what can you do to turn existing customers into long-term, repeat buyers?

Show Gratitude

Homeowners are surprised and delighted by simple “thank you” notes from contractors. The kind and unexpected act of showing gratitude to a customer is a sure-fire way to leave a long-lasting impression on customers. My 84 year-old mother saved such a thank you note, along with the contractor’s business card in her appliance file that she provided to the young couple that purchased her home many years later so they could maintain the appliances in their new home with a trusted, appreciative contractor.

Go Above and Beyond

Take note of big upcoming events in their lives as you’re talking with them about their needs. Do they need some remodeling work because they’re planning to host their daughter’s wedding in the backyard? Ask when the wedding is and send a congratulations card. Anniversaries, birthdays, promotions, and other big benchmarks in life are prime opportunities to exceed expectations and create memorable experiences for customers.

Think Outside of the Box

Gary Vaynerchuk, a well-known entrepreneur, bestselling author, and business aficionado, exceeds his customers’ and fans’ expectations at every turn. During his Inc500 talk in 2011, Gary shares that one of his customer retention secrets is his Thank You Department at Wine Library. He staffs an entire department dedicated to rocking the worlds of his clients and customers and does so in unexpected ways. One of his Thank You reps discovered that a recent first-time buyer was a huge fan of Jay Culter, the professional football player. Upon uncovering that nugget of valuable information, Gary’s Thank You Department ordered a signed Jay Culter jersey and shipped it to the customer – effectively securing a life-time customer by showing gratitude in a new and unexpected way.