Every day we spend our precious time and hard-earned money in the marketplace looking for new customers. We advertise, network, use social media strategies, all with the purpose of finding new attractive and always elusive prospects and turning them into profitable new customers.

With all this emphasis on attracting new clients, what are we doing to retain our current clients? According to a study by marketing guru Dan Kennedy, here are the reasons a customer leaves:

• 1% die
• 3% walk away
• 5% follow the advice of a friend or family member and switch to their recommended provider
• 9% change due to a better price or better product
• 14% change due to dissatisfaction with the product or service.

While the first two may be out of your control, you should be able to do something with the other 28%. However, all of the above reasons still account for a total of 32%. So why do the remaining 68% of customers leave a business? Simply put, they leave because they feel underappreciated, unimportant, and taken for granted.

Customer churn is costing companies billions of dollars each year. Here are some surprising statistics from Emmett C. Murphy and Mark A. Murphy, in their report, “Leading on the Edge of Chaos”:

• Winning new customers can cost up to five times more than retaining existing customers.
• Increasing customer retention by 2% has the same effect on profits as reducing costs by 10%
• The average business loses 10% of its customers each year.
• Reducing customer churn by 5% can increase profits by 25-125%
• Customer rate of return tends to increase over the life of a retained customer.

Wow, is that a wake-up call or what? Let’s take a look at how you can stop spending so much money trying to attract new customers and instead learn how to take care of the customers you already have.

Here are 10 strategies you can start implementing in your business TODAY:

1. Stay in regular and systematic contact. When your customer places an order, follow up with them to see how satisfied they are with your product and / or service. Invite feedback, both positive and negative. (You will most likely learn more from negative reviews) Let your customers know that you care about them in the long run and not just a one-time deal. Take the time to learn everything you can about your customers during follow-up calls. A little extra effort can get your customers to ask about other products or services you offer and you will get new business. Since it’s always easier to sell more to someone you’re already doing business with, think about the lifetime value of each and every one of your customers.

2. Educate your customers with FREE and valuable information. Sharing your knowledge through a newsletter, social media updates, special reports, and blogs will demonstrate your expertise. Providing value will also separate you from everyone else who is simply promoting your products and services in every communication. At BNI (Business Networking International), the philosophy is “Givers Gain”. Be a giver. Pay attention to the problems that are important to your client and be sure to find answers for them. You will become the go-to person for both information and your business.

3. Become a resource. Look for other ways that you can serve your customers, even if it doesn’t mean an immediate return on your efforts. Look for times when you can recommend business, help with an event, or offer suggestions to improve your business. In the minds of your customers, you will be the expert and therefore “the most important” for the next time they search for your product or service. As you get to know your customers better, you will be able to offer them assistance in a variety of areas. Networking events can play a critical role in meeting the “right people” to refer to other “right people”. Be a leader and you could become your client’s hero.

Four. Write a thank you note. When you mail a personalized card or note (not an eCard), you’re making a big difference. Not only is a card a pleasant distraction from the junk mail and bills your customers are used to receiving on a daily basis, it adds a personal touch to the relationship, which is priceless. Think about it, you are giving your customer tangible evidence that you value and support them. That card is most likely hanging on your bulletin board or on your desk. When someone picks up the card or asks about it, YOUR name will be mentioned, in a good way. Great opportunity for referrals!

5. Respond to customers promptly when they contact your business. Take care of problems immediately. Ignoring problems doesn’t make them go away, it just makes them bigger and harder to correct. Remember what your mother told you: If you’re wrong, say you’re sorry. Then do things right. Let your customers know that you are committed to a high level of service and that you will do everything possible to solve their problems. Chances are, it takes a lot less than you think to fully satisfy (and keep) your customer. There is a study that showed that only 17% of customers would give a second chance to a company that makes a mistake. However, it greatly improves the chances of you doing business again when you go beyond your expectations to solve your problems.

6. pay attention. Listening to what your customer has to say will provide you with clues to help give it a more personal touch. If your client talks about their new grandchild, send a greeting card. If you have a child going to college, put a note on the calendar and be sure to ask about it the next time you talk to him. Find out the dates of birthdays and anniversaries. Send cards for non-traditional occasions. Remember, you may be the only person who took the time to send them a card. It may be cliché, but people don’t care what you know until they know you care. Okay, one more cliché, you have two ears and a mouth, they must be used in the proper proportion.

7. act with integrity. In everything you do, you want your stakeholders and customers to trust you. Building confidence takes time, but can be lost in an instant. When you say you are going to do something, do it. When a mistake is made, admit it and then correct it. Do whatever you can to earn your customer’s unshakable faith in you and your business. Remember, trust must be continually earned. People want to do business and work for reputable companies.

8. Maintain quality. No matter how good your customer service is, if you are providing an inferior product or service, your customers will leave. Make sure all your employees are aware of the importance of maintaining quality. Install systems to monitor it. If you have products that are outsourced, make sure your quality standards are rigorously adhered to.

9. Reward customers. Establish a customer loyalty program. Give your customers coupons they can use for their next order. Surprise them from time to time with a gift. Hold a “Customer Appreciation Event”. Look for different and unique ways to please your customers.

10. Do it well. Establish a relationship with a charity or non-profit organization and invite other local businesses to participate. Share what you are doing in your newsletter and on your social media campaigns. When sponsoring your business, remind people that they are contributing to a greater cause.

All of these strategies work, but don’t be overwhelmed by thinking that you must perform them perfectly right now. It’s important to start advancing your customer relationships. Pick a technique that you feel like you’re already doing right, then think of some creative ways you can do even better.

You may want to rank these ideas in order of importance or impact on your results. Deploy your systems, one key point at a time, until you see progress, and then move on to the next. Paying constant attention to how you recognize your customers will pay off in a way that may surprise you. Go for it!