Businesses nationwide cite struggling to acquire new customers as their top business challenge. However, Woodworking Network reports, a white paper from Unity Marketing finds that strategies to improve customer loyalty and activate spending power within existing customer bases are more profitable and have the greatest return on investment. The white paper suggests that building customer loyalty can lead to greater profitability.
The white paper addresses customer retention and branding across all industries; however, a few takeaways can be applied to remodeling businesses. The white paper finds that long-term customers are likely to initiate free word-of-mouth promotions and referrals, and are more likely to purchase high-margin products. The white paper also suggests increased customer retention and loyalty makes employees' jobs "easier and more satisfying," creating a more successful cycle of customer satisfaction.
The Unity Marketing white paper cautions, though, that to experience a bump in profitability from efforts toward customer retention and referrals, the customer relationships must be profitable overall.
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