It’s hard to lose customers, but it’s worse if the numbers are bleeding. Improving customer retention is critical for businesses because the cost of acquiring new customers is much higher than retaining existing customers. Hence, organizations perform data analysis on components of customer experience, customer success, and marketing strategy as they monitor marketing metrics.
Why is customer retention critical for businesses?
While focusing on expanding the customer base, it is equally important to emphasize customer retention. It’s not a good business tactic to potentially lose out on repeat customers while in the process of gaining new customers. Customer acquisition is more expensive than maintaining and transitioning old customers into recurring clients.
According to a survey, almost 65% of a company’s business comes from repeat customers. Therefore, both customer retention and customer acquisition should balance.
Here are six strategies that add to customer success and marketing to keep customers coming back to you!
1. Build Good Values and Good Customer Relationships
It’s no surprise that customer experience plays a critical role in customer loyalty. In fact, 50% of consumers never mind paying more for a better experience. So, the best way of customer retention or earning customers’ hearts is to build good values and good relationships with them.
In addition to providing value with your product or service, the bonding with consumers happens in different forms, from getting customer feedback to consistent emotional resonance with them. Therefore, treat customers like individuals rather than statistics and provide continuous support ensuring their success with your product. Learning about the customers’ needs, pain points, and goals helps create a personalized experience for them.
Try to understand customers from outside of their interactions with your organization. It benefits you to recognize how consumers interact with your brand, their preference for engagement, and expectations, which help improve customer retention.
2. Promote and Reward Customer Loyalty
Concentrate on creating experiences for current customers and get them excited about your upcoming products or services. Similar to how you established a tailor-made sentiment with your clients, likewise promote loyalty for future sales. Whether you offer creative designing solutions or provide website designing services, customers must remain loyal to the brand.
There are many ways to implement the customer loyalty program and strategy, such as:
- Reward loyal customers with special incentives and exclusive access to new products or services.
Reward customers with discounts and benefits for continued spending.
Give special promotional offers based on the customers’ purchase history.
Run contests to help customers get their names and show your generosity around.
Loyal customers are more likely to make repeat purchases, especially if they have a worthy goal. These programs and strategies help increase brand awareness, drive traffic to the website, and increase customer retention for your business.
3. Offer a Smooth On-boarding Process
The on-boarding process should be smooth for customers. It should guide them through the product, showing them how it can help them. Also, it’s the best opportunity to connect with them to understand their needs and goals.
Every customer acquisition process should start with an information funnel. Consider collecting as much information as possible about your prospects, including their name, location, interests, etc. These data can help you build specific targeted campaigns in the future.
From the start, create a flow that provides users with a step-by-step walk-through of the purchasing journey. It should include adding the product to the cart, checking out, receiving it, and eventually, using or experiencing it. Update the flow regularly and verify if it provides value to the users. When you automate the process, make sure it still gives a personalized experience to your consumers.
Always remember that it’s crucial to design a user-friendly product that gets people on board in no time. It means ensuring your product has a responsive design and all the forms are easy to fill out. Also, make it transparent about what you’re asking from customers and validate if it’s easy for them to opt-out.
4. Use Highly-Engaged Marketing Channels
Usually, customers’ journey starts at different places. For example, some start online, others come from referrals, and some begin in the aisles of a local supermarket. Though all these channels look different, they all come back to one place, i.e., the purchase decision stage.
Be cautious while reaching potential customers because you’ll have to get their attention first. Take advantage of social media services, especially the social channels where most of your potential customers reside. Use highly engaging inbound marketing tactics, such as blog posts, emails, etc., to reach new customers and those already in the funnel to promote customer retention.
5. Reach Out to Current Clients
Reaching out to your customers is as important as connecting with new ones. Sometimes, the best way to approach new prospects is by reconnecting with old clients. Since they are already familiar with your brand, the chances of a sale are higher because they know what they want from a product.
The email marketing campaigns help reach out to past and current clients through emails and newsletters. Mention your special discounts, offers, rewards, updates, and other perks during the campaign. It’s a great way to remind clients and potential customers that you’re here to help them succeed.
6. Continue Improving your Products and Services
As a business, it’s critical to improve your products or services regularly. It can be achieved in several ways.
Create better user experiences by listening to your target market’s needs. Learn if they’re having trouble using your product or if they’re finding value in using it. Ensure the products you sell meet the expectations of the target audience. Determine what the product is not doing to meet the customers’ expectations and fix it.
Constantly update your products and offerings. Keep researching the market, stay aware of trends and changes, and always observe what your competitors are doing. Ultimately, always keep your products and offerings relevant.
The bottom line is that there are several ways to upgrade services and improve customer retention without having to rely on expensive paid advertising. You also learn how to grow your business lately.