Keeping your customers happy should be a huge part of your business efforts.
Understatement of the century, right? It’s a simple truth, but one that can transform your entire operation. We often get caught up in the thrill of the chase, focusing all our energy on bringing new people in the door.
But what about the amazing customers you already have? They hold the keys to sustainable growth, and all you have to do is ask them for it.
This is where the power of customer feedback comes into play. By simply listening to what your customers have to say, you can unlock incredible insights that boost retention, spark growth, and build a community of loyal fans.
Ready to learn how to turn simple surveys into your most powerful business tool?
This blog is based on a recent podcast conversation our founder, Adam Ortman, had with Dawn Kennedy on the Business Mastery Podcast. Listen to the full podcast here, and check out our continued thoughts below.
The Art and Science of Keeping Customers
Customer retention is a delicate dance between two partners: art and science. The "science" part involves the hard numbers. You’re tracking metrics like customer lifetime value (LTV), purchase frequency, and the cost to acquire a new customer. These are the black-and-white data points that tell you what’s happening in your business.
The "art" is about understanding the why behind those numbers. It’s about diving into consumer psychology and figuring out what motivates your customers.
As our founder, Adam Ortman, put it in his interview with Dawn Kennedy of the Business Mastery Podcast, focusing on both is "spot on." You need to look at the entire customer journey, not just the moment of purchase.
He noted, "Acquisition is incredibly important…but it’s also about, ‘what is that experience for the customer when they are trying to work with you?’" This means you need to think about how you re-engage customers throughout their entire lifecycle with your brand.
Why Businesses Get Sidetracked by Acquisition
So, if retention is so important, why do so many businesses pour all their resources into acquisition? According to Adam, "It’s the easy play. I get more customers, I get more sales." It’s a straightforward, almost primal business instinct. More customers equals more money, right?
While that’s true to an extent, it overlooks a massive opportunity. Focusing solely on acquisition is an expensive game. Just think about the advertising costs, the marketing efforts, and the sales team's time it takes to convert a complete stranger. Depending on which study you look at, acquiring a new customer is five to 25 times more expensive than keeping an existing one.
The math, as they say, ain’t mathing.
As Adam said, "Keeping them as customers… is a lot cheaper than going on finding new customers." Your existing customers are like gold, and it’s time to start treating them that way.
The Simple Power of a Customer Survey
How do you start mining that gold? It’s simpler than you think. Adam’s advice is direct: "Survey your clients. Reach out to them and just ask them questions about their priorities and motivations." A well-crafted survey is a deceptively powerful tool, after all, providing a direct line to your customers' thoughts.
Surveys are exceptionally powerful because they give you both quantitative and qualitative data. The quantitative part is the "science," like asking customers to rate their satisfaction on a scale of 1 to 10. The qualitative part is the "art." These are the open-ended questions that uncover the real gems.
As Adam explained, "You’re also getting so much art out of this, which is understanding how they live their lives, what are their key points, what are the values that your business is providing to them." This information allows you to better serve your current customers and, just as importantly, helps you find more people just like them.
Know Your Audience: Segmenting for Success
Not all customers are created equal, and that’s perfectly okay. A powerful way to use your customer data is through segmentation. You can group your customers based on their purchase history, loyalty, and engagement levels. Doing this allows you to tailor your communication and offers to the right people.
There’s a classic business principle that often holds true here. Adam calls it the "80-20" rule, and it’s sometimes referred to as the Pareto principle as well: "Usually, the top 20 percent of your customers are generating 80 percent of your business."
This top 20 percent is your VIP group. By identifying these customers, you can focus on giving them an exceptional experience to ensure they stay loyal. Plus, by understanding what makes them tick, you can refine your marketing to attract more high-value customers just like them.
Using Feedback to Fuel Your Growth
Customer feedback is helpful when it comes to fixing problems, but it can also serve as a roadmap for future growth. The insights you gather can guide everything from product development and marketing campaigns to new loyalty programs. When you involve your customers in the evolution of your business, you create a powerful sense of ownership and connection.
Adam shared a fantastic example of a client who was undergoing a rebrand. Instead of making the decision in a closed boardroom, they turned to their best customers. "We asked their top 20% of customers, ‘Which one do you prefer?’ And they ultimately made the decision."
The result was more than just a new logo. Adam says, "We got so much great feedback from that because their customers felt involved." When those customers saw the new branding out in the world, they felt a sense of pride, knowing they had a hand in creating it.
Best Practices for Creating Great Surveys
Ready to create your own survey? Here are some practical tips to get you started without feeling overwhelmed.
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Use Free and Simple Tools: You don’t need expensive software. Tools like Google Forms or Microsoft Forms are free and incredibly easy to use.
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Keep it Short and Sweet: Respect your customers' time. We all have the attention span of a goldfish these days. For an unsolicited survey, "Under 10 questions is what I would recommend. But the fewer, the better," Adam advised.
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Offer an Incentive: If you need more detailed feedback, consider offering a small reward for their time, like a discount code or a gift card. It can significantly boost your response rate.
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Timing is Everything: When should you send your survey? It depends on your business. Adam mentions his agency sends a simple one-question survey every six months. For a business with faster customer turnaround, you might send them more frequently. Experiment and see what works for you.
From Feedback to Action
Gathering feedback is only half the battle. The next step is to act on it. What if your survey reveals a gap in your services or a demand for a new product? This is a golden opportunity.
When you roll out something new based on customer suggestions, manage your expectations. It might not be an overnight sensation. Adam suggests a gentle approach: "Soft launch it, see how it goes, and then if it makes sense for your business, lean into it. If it doesn’t work, let’s roll it back." Testing and iterating is part of the process. Don’t be afraid to try something and pull it back if it doesn't get the traction you hoped for. It’s not a failure; it’s a learning experience.
The Right Tools for the Job
To do all of this effectively, you need a way to keep your customer information organized. If your "CRM" is currently a stack of sticky notes or a messy Word document, it’s time for an upgrade. A Customer Relationship Management (CRM) platform like HubSpot or Salesforce is essential.
Adam emphasizes this point, saying, "The tool is really your first step. It allows you to aggregate all of this information so that you can have a very clear view of all of your customers."
A CRM centralizes everything: contact info, purchase history, communication logs, and more. It makes segmenting your audience and identifying trends incredibly simple, empowering you to engage with your customers in a more personal and effective way.
Get Creative with Customer Loyalty
Loyalty programs don’t have to be a boring punch card system. Think outside the box to create memorable experiences that keep your customers coming back. It’s about adding value in unexpected ways.
Adam shared a brilliant example from his own wedding caterer. Beyond just the event, they offered a unique service: "They make a small version of your wedding cake for your anniversary every year. I love that idea, and it keeps me in business with them." This creative touch transformed a one-time transaction into a long-term relationship. It’s a perfect illustration of how a little creativity can build powerful, lasting loyalty.
It's Time to Focus on Retention
As business owners, it’s easy to get caught up in the constant push for more. But as podcast host Dawn Kennedy summed it up, "We do sometimes spend a little more time trying to get people in the door instead of keeping them there." By shifting just a fraction of your focus to the customers you already have, you can build a more resilient, profitable, and beloved business.
So, what’s your first step? It doesn’t have to be a massive overhaul. Start small. Set up a free CRM to organize your contacts. Identify your top 20% of customers. Or, better yet, create a simple, five-question survey and send it out. You’ll be amazed at what you learn.
Need help getting started? Have a listen to Adam Ortman’s episode on the Business Mastery podcast, and get in touch with Kinetic319 to learn more about how we can help you meet your retention goals.