There is an important statistic every business owner should know - it costs 7 times more to acquire a new customer than it does to keep an existing one. But it’s not only the cost to consider. You can't understate the value of developing solid customer relationships.

One analysis shows that a 5% increase in customer retention results in a profit increase of 25% to 95%, with 65% of a company’s purchases coming from returning customers. In addition,

• Repeat customers spend nearly 70% more than new customers.
• Repeat customers refer 50% more people than one-time buyers.

While that's the good news, unfortunately, customer retention rates are low in retail shops and restaurants. Only 30% of retail and restaurant customers return after their initial visit. Because of this, business owners tend to focus on bringing in new customers despite the cost. But you can make inroads into the 70% of your customers who aren't returning to your establishment. Here are five things you can do to turn first-time customers into regulars.

1.  Give them an exceptional experience – According to QSR magazine, 89% of businesses claim that customer service is one of the leading factors in boosting their retention rates. Who wouldn’t want to return to a restaurant with great food and outstanding service? Happy customers are return customers.

 2.  Ask for honest feedback –.Be sure to ask your customers to leave a review on your website, Yelp, or Google if they are pleased with their visit to your business. 40% are likely to leave a good review after a positive experience. If their experience was less than stellar, take their feedback to heart and ensure they know their opinion is valued.

 3.  Make it personal – Communication is a great way to stay top of mind with your customers. Don't forget to use email and your social media channels to let them know about menu changes and daily specials. Don't just respond to feedback when it’s positive. Be sure to deal with any negative experiences quickly. There is a reason for the old saying, “The customer is always right.”

4.  Show them appreciation - Start to collect basic information about your customers and send a personalized email or direct mail piece with a coupon or special offer on their birthdays and anniversaries. 75% of consumers say they frequent businesses that offer rewards, so consider adding a loyalty program and special incentives like discount coupons and frequent diner cards. Remember how profitable it can be when you keep your customers coming back.

5.  Commit to the community – Being involved in your community can create a strong bond with your customers. Show you care by supporting a youth sports team, becoming involved in local events, donate to nonprofits, schools, and local charities. Activities like these will raise your business profile and build a solid customer base of support.

Since 2005, Quikstone Capital has worked with thousands of businesses just like yours. If you’d like to upgrade your equipment, add a gift or loyalty program, or make other improvements to your restaurant or retail business, a cash advance from Quikstone Capital Solutions can help your business grow and profit. 80% of our merchants are repeat customers, and we are proud they place their trust in us. Contact us today to learn more or schedule a no-cost or obligation consultation.