5 Simple Strategies to Improve Customer Retention
For businesses to grow and thrive, they must retain their existing customers while attracting new ones. Many businesses focus primarily on customer acquisition, but customer retention is just as important - you need to make sure you're not losing existing customers faster than you're adding new ones to your customer base.
It costs up to seven times more to acquire a new customer than to keep an existing one. In addition, loyal customers are very valuable because they are easier to convince to make a purchase. Your company has already invested in a relationship with them and they are your best source of referrals. These are just some of the reasons to consider when trying to balance customer acquisition and retention. You don't know exactly where to start? Here are five simple customer retention measures to get you started:
Customer Surveys
Customer Service
Personalization
Subscriptions and Loyalty Programs
Rewards or Discounts
Customer surveys are an easy way to find out what you're doing well and what you need to improve. Use them to collect feedback from your customers following customer service requests, deliveries, installation work, and other “touch points” during the customer journey. Surveys are ideal for gaining insight into the performance of individual service workers, delivery drivers, accountants, or anyone else who interacts with customers—as well as product quality. If you see these things through the eyes of a customer, you can improve your processes accordingly. However, the information gained will not only help you, but also show your customers that they are important to you and that you want to continuously improve your service offering.
Improve customer service by things like improving response times, increasing first-contact resolution rates, making it easier for your customers to reach you, and eliminating delivery issues. A study by Walker found that in 2020, customers will value experience over price and product . The same study also showed that 86 percent of shoppers are willing to pay more for a superior customer experience . There are several ways you can improve the customer experience . For example, you could offer other contact options for customer service, such as live chat, chatbots and social media options. This enables you to serve more customers without hiring additional service staff. At the same time, your customers will be happier because they can reach you through their preferred contact method. It's a fact that buyers don't want to put a lot of extra effort into reaching out.
Personalization is something that today's "savvy" customers have come to expect. It may not be realistic to compose every single message individually, but customers can be grouped based on their preferences, previous contacts or transactions, their location, and more. You can then use the insights gained from customer interactions to send group-specific messages and emails. This knowledge also improves the quality of your customer service because agents know the context and customers don't have to repeat the same information over and over again. If you personalize the customer dialogue with the help of the collected data, customers will feel connected to your company and develop the desire to buy from you again.
Offer subscriptions or a loyalty program. If your business model lends itself to subscriptions (such as Amazon Prime), then you could offer subscription products or services. A fee does not necessarily have to be charged. The aim is to improve customer loyalty. Instead of an ongoing fee for products or services, your subscription can offer other benefits to customers: exclusive content, early notification of new product offerings, pre-sale discounts, or special events. When creating your subscription content, like a newsletter or other possible perks, it's important to make sure you're offering your customers something they really want. And here we are back to point 1: You need to understand the needs, wants, challenges and goals of your customers.
A loyalty program is another way to get your customers more involved. Try to include playful elements when designing your loyalty program. It should be built like a game that your target audience will enjoy. For example, in certain activities, e.g. H. when they interact with your brand, earn points. Once they reach a certain goal or level, you will receive a reward. When clients are working toward something they want, that's an added incentive for them. Both subscriptions and loyalty programs help businesses strengthen relationships with their customers.
Surprise existing customers and first-time buyers with a reward or discount to encourage more purchases. This bonus could be something small that complements the item or service purchased, or a free sample of something your customers appreciate. An unexpected gift that customers found reasonably valuable will delight them and make them feel special. Free or discounted additions are also welcome. Everyone wants more for their money! When you incentivize first-time buyers to buy from you again—especially within a certain period of time—they develop a habit of coming back to your brand over and over again. And that, of course, is the goal of these programs!
Final Thoughts
Businesses are often tempted to focus on sales and marketing. However, if you lose sight of the satisfaction of your existing customers, you could lose customers faster than you gain new ones. And if that's the case, you won't be in business much longer. With the right customer retention measures, you can build a loyal customer base and grow a strong and stable business that can weather ups and downs with ease. It's what will get you through economic downturns and your toughest competition. Customer loyalty, coupled with good sales and marketing, is the basis for the long-term survival of your brand.