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Despite making an enormous contribution to the Indian economy every year, small and medium-sized businesses face plenty of financial, managerial, and marketing concerns. While banks and NBFC’s have resolved the financial challenges through easy small-medium enterprise loans, SME owners must now learn essential marketing and customer retention strategies to generate more profits and better organize their business practices.
Methods to Enhance Customer Retention
If you are planning to expand your business or its customer base, you might need a small business loan. However, most small-medium enterprise loans require your business to demonstrate profit for the past financial years. Your business can be profitable only if your current customers continue trusting your brand, and thereby continue shopping with you. The only way to ensure customers’ trust in your brand is to incorporate the following tried and tested customer retention techniques.
1. Accept and Work on Complaints
As a newly established small or medium-sized business, you must improve your offerings to stay ahead of competition. To accurately gain insight on the market performance of your products and services, you must establish a framework on how to contact customers for seeking feedback and responding to complaints. Most customers will not reach out with complaints on their own! Therefore, reach out to your customers after every product or service delivery. Furthermore, after resolving a complaint, let your customer know that you valued their feedback and have worked on improving your services.
Seeking customer feedback and proactively working on it will help you retain customers and increase their trust in your brand. This trust will ultimately lead to increased revenue and better chances of approval if you ever apply for an SME business loan.
Additional Read:- Why Is MSME Loan the Perfect Finance for Small Business Owners?
Once a customer has purchased one or two of your products, they develop a degree of trust in your brand. It is a good idea, then, to promote new products and services to the same customer. Brands like Amazon always use their marketing channels to suggest products to customers who have shopped for similar things in the past. This practice is called upselling, and it helps reinforce customer trust and interest in your brand.
Promoting the right products to existing customers can lead to a direct increase in income for your business and make it a favourable candidate for an MSME loan.
3. Establish Customer Loyalty Programs
Customer loyalty programs are a competitive advantage few small or medium-sized companies think of. Through such programs, your brand’s commitment to customers is solidified. Moreover, they lead to better customer engagement by providing value-based services to existing clients.
A robust customer loyalty program is the prerogative your brand needs for better market performance and increased profits.
Following these customer retention strategies will help your business overcome revenue losses or loss of reputation.
If you are looking to expand your business, develop new products, purchase new machinery, or hire additional employees, apply for an SME business loan instead of draining your profits. Tata Capital offers excellent small-medium enterprise loans starting at an interest rate of 19%. Our small business loans also come with flexible repayment tenures and responsive customer service. For availing of our MSME loans, apply online or approach our offices.
Additional Read:- What Are the Eligibility Factors Considered for an MSME Loan Application
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