It is a mistake for companies around the world to think that simply having a superior product or service is sufficient for successfully keeping their customers. It’s unfortunate, but the fact is that it is just one of the means by which to market, and there are countless other plans for keeping customers.
It is essential for any business to acquire new clients in order to grow; however, it is just as necessary to focus on increasing customer retention as the expense of gaining a new customer is five times greater than keeping a current one. Customer retention is a blend of art and science.
Constructing and sustaining strong relationships with clients by making extra attempts to exceed their anticipations is the skill of being a successful customer service provider.
The key to keeping customers is comprehending their experience, guaranteeing support from all areas of contact, and furnishing your personnel with the resources to provide an outstanding customer experience.
KPMG emphasizes the value of efficient retention marketing, as those businesses that invest in customer retention strategies view it as a key factor in driving profits.
So what does client retention mean? And how to retain customers with different relationship-building strategies? Let’s look into the main topics and examples of how to construct a profitable customer loyalty strategy to boost your business.
What is customer retention strategy?
Retaining customers is the set of plans and processes an organization should use to maintain loyalty to their brand. The principal objective of creating an effective customer conservation initiative is to assist businesses in keeping their customers and understanding the impact they have on the company’s increase.
A successful customer retention strategy always starts from the initial encounter of a customer with your enterprise, and continues over the period they are associated with your organization.
Why is customer retention marketing important?
The likelihood of being able to make a sale with an already existing customer is between 60% and 70%, whereas the probability of succeeding in selling to someone who has never purchased from the company is only between 5% and 20%.
It will be essential for sustaining your business during fluctuations to comprehend the component of keeping customers and turning them into steady followers of your brand. Putting into action retention plans and thoughts can have a significant influence on your enterprise in three major ways.
- Cultivate customer loyalty – The right client retention programs help you create an experience that not only satisfies your customers but also engages them in a more meaningful interaction with your brand, forging loyal relationships.
- Increase customer lifetime value (CLTV) – Increasing customer retention rates by 5% increases profits by 25% to 95%. Hence any business that wants to grow its bottom line, needs to equally focus on retaining customers as well acquiring customers for sustainable growth.
- Build positive word of mouth – The best customer retention tactics enable you to develop lasting customer relationships who become loyal to your brand. Eventually, they might even turn out to be your brand ambassadors and spread positive word of mouth.
The significance of having a good customer experience is so strong that a majority of Americans will change companies with just a few negative experiences. Below are a few tactics to encourage your customers to remain loyal to your organization in the long run.
1. Take Critique Seriously
This may seem to be obvious, but providing outstanding service to customers will increase their faithfulness. Gary Vee, an enterprising social media celebrity, claims that being polite is financially advantageous. He opines that nobody can reach their full potential in business and life unless they conduct themselves with courtesy.
If a patron shares disgruntled sentiments to you through electronic mail or a social platform, give heed to what they have to say and be attentive to their remarks. Consider what you would expect from a company if you were in their place. Shep Hyken, an expert on the customer experience, highlights the importance of articulating an apology (even if it’s not your responsibility), accepting responsibility for problem solving, and providing an answer in a prompt manner.
Giving either a reimbursement or a price reduction is a good starting point, however depending on the problem, a more comprehensive solution might be necessary. A professional service business might need to take a look at how regularly they are checking in with clients, or how they can set up a more efficient process for garnering feedback, if a customer who is believed to be content suddenly provides negative feedback.
An increase of just five percent in customer retention can result in an ROI boost of between 25 and 95 percent, so it is vital to prioritize the customer experience. The impact of customer loyalty stretches further: a devoted client may act as a promoter of your business who can spread the word to a wider audience in their social circle.
2. Onboard With Care
Would your clients be able to work out how to use your product or service without assistance? Sure. Should you let them? Not necessarily. The customer success strategy of onboarding is centered around providing individualized training to each customer based on what they need. This will prevent the customer from having difficulties in the future, and you can emphasize how your item or service can address their troubles. This will also let you give your customers instantaneous assistance from someone working in your organization. Making an individualized connection at the initiation of the bond will furnish the foundation and make clear to your customers that you’re the type of organization that is concerned about whether or not they do well when utilizing your services.
3. Create a Content Strategy With a Twist
Content strategy is a wonderful way to get the attention of your clients. Many companies are utilizing platforms such as TikTok to produce sponsored material that does not seem or appear like sponsored material.
Much like other social media sites such as Instagram, organic reach on TikTok is greater since the platform is still in the process of creating its algorithm. TikTok is always featuring different memes that are popular at the moment, and many companies take advantage of this by tweaking the meme content to apply it to their own business.
Though content may not be as rapid or obvious as some other advertising tactics, it has awesome potential to get to shoppers who already spend for your goods and services. If customers have already agreed to your services or follow you on social media, it is advantageous to constantly remind them of your business in order to generate more sales from current patrons.
Content strategy can be employed to show appreciation to customers who are loyal. If they agree to extend their plan for an additional year, this is a great chance to give them a reward for staying with your company. You can give out freebies such as digital books or manuals that provide expert advice and strategies regarding your products.
4. Request and Embrace Feedback
Brands are scared of this practice since they fear they will invite plenty of criticism and adverse responses. The advantages of seeking out feedback are much more significant than any potential downside.
What may appear to be improvements from your perspective may not necessarily be the same as what your customers envision. By taking the time to regularly get feedback from your current customers, you can pinpoint areas that need enhancement instead of guessing which areas need attention and investing in those spaces without knowing whether it will make any difference. Furthermore, when customers recognize that a business listens to their input and then implements it, they are more confident in their loyalty towards them. Create and utilize an approach for getting opinions from your buyers so that you have useful data on how to keep them content and revisiting your business.
5. Host a Subscriber-Only Webinar
Come up with appealing offers that your customers will not be able to resist. Host an online seminar with a well-known leader in your field who has a large presence on the internet. Provide free access to anyone who is already signed up for your mailing list. Divide your email list so that your promotions are only sent out to those who are most passionate about that subject.
Provide existing customers with two months of your service for free if they attend. This should raise the likelihood that people will go to the webinar, and it might also help you sustain a relationship with existing clients, so you can make a great impression on them and keep them around.
6. Instill a Rewards Program
If you want to maintain your current customers’ engagement, incentivize them by offering rewards for their loyalty and ongoing patronage. There are numerous possibilities for configuring this and the incentives you can offer are enormous. Begin with a small initiative when asking patrons to sign up, both in person and on the web. Utilize the collected data to then forward deals and special “VIP only” cutbacks. You can provide an incentive to current customers for any referrals they make to obtain new customers as well as retain the ones you already have.
Other potential plans could be offering a present each year for Christmas, a special promotion on someone’s birthday, or special events throughout the customer’s life. Giving it a personalized feel will make it extra special, conveying that you are thinking of them beyond the professional relationship.
7. Offer an Incentive to Return
Keeping your existing customers costs less money than getting new ones. Have you experienced any customers discontinuing their service lately? You can create a programmed email to send customers who have made purchases from you a questionnaire regarding their experience.
Offer them something special if they come back as a customer. If they were thinking about selecting another service because of the cost, you have accomplished success by giving them a markdown on a yearly package. They’ll remain with you for at least the next 12 months and the longer they put into your organization, the more probable it is that they’ll hang around even longer. Almost four fifths of people will become more dedicated to a company after having an advantageous experience with what they offer.
8. Delight Your Customers Always
Customer satisfaction should not be the only goal for businesses; it should be attempting to provide a delightful experience that surpasses customer expectations. This is a great way to ensure customer loyalty. But how would you know that customers are delighted? It’s an easy solution: really hear what they’re saying and figure out what they need.
Don’t pass up any chance to astonish your clients. Attempt to provide better service at a reduced cost, exceed what they anticipated. Give those special people special treatment and you will definitely increase customer loyalty.
How to increase client retention by delighting customers?
- When you anticipate customer needs and align your products and services to their interests, they are happy that they are valued and listened to.
- Putting genuine efforts to deliver good experiences to customers pays back well. They choose to remain with your business for a longer time.
- Delivering consistent support across all channels always impress customers as it is one of their top expectations.
- Know the top issues your customers are facing through surveys, social channels, and take active steps to fix them.
The proof that customers are willing to invest more for improved experiences and better quality is evident in the 55% of consumers who would pay extra for a positive customer experience.
9. Gamify Your Strategy
Treat your customers like they are playing a game when they reach certain benchmarks with your business and reward them accordingly.
Give customers branded stickers or emojis in their email when they complete their initial purchase with you. Send the person who referred a friend a fun social media filter as a thank you.
Create a rewards program that gives customers points for each transaction they make. Points can be used to get access to additional features or perks, such as no cost shipping on a purchase.
Marketing automation allows you to be able to utilize emails to be sent out upon every interaction with customer milestones. The tremendous advantages of automating processes are clear, with a main one being higher productivity; it is possible to automate up to 80% of your approach. It’s like the famous adage, “Work smarter; not harder.”
10. Facilitate Ongoing Education
Never abandon your customers after selling them something. Demonstrate your commitment to them in the long run by giving them continuous instruction that will benefit their present, future and five years in the future. Give them learning opportunities through automated emails and email updates. Create an internet database that functions as the center for all of your most valuable information and any self-help utilities and resources. You can likewise make an online discussion page or social media platform where customers can visit to get answers from your team or trade instructive data that could be advantageous to them. Not only will these things give your customers control and enhance their satisfaction, but it will lessen the demand on your help team as well. Win-win!
People will keep coming back to your business if you make sure to keep them content. Customers will remain loyal to you if they can always trust that they will be receiving reliable and excellent service and assistance from you, resulting in them not bothering to look to a different business. Although it is important and thrilling to acquire fresh customers, remember not to overlook your loyal customers you have had over a long period of time. They are the true driving force behind the development of your organization over a while.
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