The Foundations of Customer Acquistion The Importance

Customer Retention Traditional customer acquisition

The concept of customer retention can

techniques, like constant advertising of Customer
and fiercely reaching out to potential
be enforced in two main ways: focusing
on extraordinary customer service and
customers, can quickly become very Retention
expensive.

building connections and providing

discounts to these loyal customers. Corporations often spend immense
Using both of these strategies is an amounts of money, specifically on
effective way to maintain stable advertising campaigns and heavy
customers.
discounts. This strategy of acquiring
new customers is incredibly wasteful,
and expenses can sometimes exceed
Customer Service benefits.

Providing excellent customer service is

Instead of spending money on trying to
an integral part of retaining customers. In
bring in new customers, consider
fact, without proper customer care, focusing resources on maintaining
many businesses fail to stay afloat. current ones.
Certain restaurants, like Chick Fil A,
thrive because of how they treat their
customers, along with desirable food
options1.

Spend more money on improving

customer service to build connections
and keep loyal patrons returning
frequently. Encourage managers and
employees to stay friendly, with
incentives like pay raises. Improve the
atmosphere of the restaurant and serve
customers in any way possible. These
simple changes can bolster profits.
Loyalty Programs
The other supporting pillar that leads
How often do you use restaurant loyalty programs?
to high retention rates is the use of
loyalty programs. These programs,
usually apps or websites, offer
discounts to frequently returning
customers, encouraging them to come
back often.
Even though the discounts for loyalty
programs can become expensive, they
are often more effective than traditional
acquisition methods. The effects of
loyalty programs have been studied in
different industries. For example,
frequent flyer programs can lead to
profit margins of up to 40% whereas
regular flights have margins at around
10%2.
If you don’t already have a loyalty
program, consider starting one.
Offering discounts to customers and
giving them reasons to come back is a
sure way to keep steadily increasing
profits. Build connections with
customers through loyalty programs.
Data Analysis
While the amount of people who
regularly use loyalty programs might
Almost Never Rarely Every Month Weekly seem underwhelming, a significant
number of customers do use these
programs frequently. Even though
almost half of the surveyed population
never utilize loyalty programs, around a
22% quarter of people indicated they use
these services frequently. These loyal
customers help to create a successful,
44% profitable business.
The importance of customer service is
16% revealed in this study. Nearly every
surveyed person indicated that customer
service is extraordinarily important.
19% Many even indicated that they would not
return to a restaurant where they
received poor service. To keep
customers coming back, provide
How important is customer service? (Scale excellent, engaging service.
of 1-5 with 5 being the most important.)
Customer retention can be achieved
Rating through various different strategies. Two
20 of the most effective strategies to foster
20 18 connections with customers are
providing excellent service and exclusive
15 discounts through loyalty programs.
Consider spending more on retention
10 strategies than aquisition techniques to
earn more from each customer. Employ
these techniques to improve relations
5 3
with customers, along with increasing
1
0 profits.
0
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