Retaining customers is a business priority in Q4- survey

Retaining customers is a priority for businesses as we enter Q4 2021, according to data collected by Tamworth-based software specialists, Softext.

As businesses prepare to enter Q4 of a tumultuous year of restrictions, lockdowns and hopes of normality, Softext asked 100 business owners what they plan to focus on in the next three months.

Findings found that retaining customers is high on the list of priorities at 40 per cent and records almost level with attracting new customers at 46 per cent.

Following this, other priorities for Q4 include building marketing and communications campaigns (19.1 per cent), product development (19.1 per cent), and hiring new staff (13.5 per cent).

Many business owners focus on new sales and customers. However, Softext believe that nurturing customer relationships and encouraging customers to return is one of the most valuable things a business can do.

Rob Hupston (pictured), managing director at Softext, said: “In a time when decision makers are feeling more conservative about advertising and marketing spend, we 've noticed more businesses focusing on nurturing relationships with their existing customer base instead.

"The benefits of actively retaining customers far outweigh the costs involved, and we 're excited to help more businesses develop better relationships with their customers."

An existing customer is 60-70 per cent more likely to buy from you again, and an estimated 80 per cent of future profits can be linked to just 20 per cent of your existing customers.

It also costs considerably less to retain and sell to an existing customer, than it does to attract a new one.

Softext reported that one of the best ways to retain existing customers is through CRM software, which can not only be used to store customers contact details, but also their buying habits, and sales history.

Nearly half of all participants reported using CRM software multiple times a day to help them run their business.

For businesses planning to actively retain customers in 2021, contact Softext and speak to a member of their team on 0121 323 2304.