Retaining customers is one of the most crucial activities a company can do over time, but it also seems to be the one activity that perplexes managers across every industry time and time again. There seems to be no clear reason why though after all it is far less costly and more profitable in the long run to retain a customer, than to get a new one. Consider the lifetime value of customers, rather than the value they'll give you from just one purchase and you will go a long way to being a business success.

In the long run, repeat business is more profitable than you realize with much less effort and struggle that you would need to put in to try to make new customers each time. Maintaining existing customer loyalty is less costly and much simpler than wasting your financial resources on making new ones. An old and satisfied clientele talks to others about your good service and through their loyalty helps to build your reputation.

Since new customers are normally introduced through old ones, your existing customers help promote your business anyway. On an average, a new customer requires at least seven visits before he buys something from you; an effort that is greatly reduced if an old client refers you. So you save not only money but time and effort too. Look after your existing customers and they will ensure that your business succeeds and grows with time.

The aim is to make the customer feel valued. This can be done by understanding his/her needs and providing service up to it or exceeding his expectation. This will impress the customer and he will feel valued and would like to continue to do business with you. This will improve your business.

If you give your clients incentives for continuing to do business with you, they will pay attention to what you have to say to them. On the other hand, if they feel a lack of interest in your approach, they are sure to leave you. So take care of your current customer base; you are where you are because of them and if they weren't there, you wouldn't be either!

Scott F. Geld is the Lead Supervisor of Marketing Blaster, a Pay-Per-Click traffic source that repeatedly beats the major search engines in Conversion and ROI Ratios.