Both the referral customers and the customer retention are two different terms and have an individual definition of their own. These terms are of equal importance in the success of any business, no matter if it is an older one or a newly started venture. These terms and their depth basically serve as a s source of earning profits and revenues for the businesses, without their effective use, the business will eventually fail. In both the previous times and the modern world, the dependency of the business is all upon the customers, because they are key users.
Starting off with the referral customers, which is defined as one of the marketing tactics and techniques through which people and businesses try to promote their product and services directly to the customers, either with the help of word of mouth or simply with the good reviews. For example, a company has succeeded in acquiring a loyal customer because of the quality product or service, the very same customer will surely refer the good experience which he or she had with the company, and this will eventually lead to a chain of good remarks, hence, benefiting the business tremendously by the end of the day. The businesses try real hard to get back some positive customer referrals because that is their sole purpose and if a business is new, then this can serve as a guaranteed success because good referrals can never go wrong. There are number of ways through which one can score good referrals, for instance by introducing a referral program among the target audience in the form of newsletters, surveys and questionnaires.
Once the company has gained enough positive referrals and acquired customers, then it is the time for the customer retention. Once the business has gone through some real expenses while acquiring new customers, then comes the time for milking with the help of retention, The customer retention involves less expenses and more strategic planning, as the term means the flow of existing customers should not lower down in numbers because the business must have enough strategies in work to retain the customers, instead of motivating them to switch to the competitor due to the lack of quality product or services.
Retaining a customer is easier, once they have stepped in to your circle of goods because there are a lot of ways and plans, which can be executed to make sure the repurchase. For example, a business or entrepreneur can simply introduce rewards for the customers, if they purchase again from them, can introduce membership or loyalty cards for the loyal members, and send in holiday greetings and birthday wishes to the client to make them feel liable of another visit or purchase. Furthermore, the company or brand can simply offer discounts or special sale for the loyal customers, which can be arranged a day before making it live to the general public. These are some of the basic and little steps, which can help on building a lifelong relationship with the customer. For more, you can read a complete report here by Matthew Knoot.