What is Customer retention? Customer retention strategies are essential for sustaining and growing a business. These strategies focus on retaining existing customers by fostering loyalty and satisfaction.
Many businesses focus on marketing and reaching out to new customers, which are great. But to get more sales and build a business system, it’s good to invest in “customer retention strategies”.
What is Customer Retention?
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Customer retention means when a business can retain its customers over some specified period. Either as a service or product-owned business.
These depend on the business customer service. For a customer to be loyal to a business there’s more to it!
Customer retention has a direct impact on profitability and referral for a business.
If you value your existing customers, be sure to get new ones and retain customers too. This is also called repeat sales.
If you want your customers to stick to your brand and help market for you, read on.
Havard business school stated that increasing your customer retention rates by just 5% can grow a company’s profits by 30% upwards.
Why is a customer retention strategy important for a business?
- it’s easier to make sale because they have patronized the business
- Cost-less marketing
- It helps in recommendation and feedbacks
- Easy marketing process
- More customer loyalty
In order to maintain customer retention rates from your existing customers, there few things to know and do.
Here are Key things to Customer Retention and Ways to apply them;
Exceptional Customer Service:
You can see it’s not just customer service, but “exceptional”. Every business that has sales has gone through the customer service procedure. For every purchase a customer makes, it’s a remarkable thing for your business to leave an impressive on-boarding process. Provide prompt and personalized support, personalization helps promote business and customers relationships. Address customer concerns and feedback proactively.
How to apply this?
Personalize your customer deliveries
Staff tutoring on conversing with lead customers and turning them to buyers
Reply all negative feedbacks with a positive reaction to improvements
Make customers feel comfortable when patronizing your brand.
Build Strong Relationships:
Establish a connection with customers through personalized communication. It could be Email, bulk sms, calls, etc. Reach out to customers at their special time or keep them informed on your business values using different method. Give your best to your customers always. Use customer data to understand their preferences and needs tailor your communication to these needs and give listening ears.
How to apply this?
Get customers contact details
Discuss with customers aside business transactions
Help in carrying out product or understanding why they need a service
Build trust
Loyalty Programs:
When a customer comes back more often, he/she will naturally ask for customer loyalty programs. Implement reward programs to incentivize repeat business, it can be discounts, exclusive deals, thank-you cards for every purchase, subscription, gifts for referral, cash for affiliates, etc.
Create these programs so that customers will want to be excited to keep patronizing a business brand.
Quality Products/Services:
Product/Service is the first contact between a customer and a business, if your product/service meets status-quo, be sure to have retained customers. Consistently deliver high-quality products or services. Meet or exceed customer expectations to build trust.
How to apply this?
Brand your product/service properly
Ensure quality assurance
Check out errors affecting your business and correct it immediately (market tests)
Tweak your services to suit all types of customers
Listen to your existing customers
Effective Communication:
Keep customers informed about updates, promotions, and new offerings of your business. You know that email promotions you get on your mobile are customer retention strategies. A business can speak to its customer through various channels like email, social media, and newsletters.
How to apply it?
Use email automation to send business updates
Use content strategies (like tags) to educate or entertain customers
Feedback and Improvement:
Encourage customer feedback and act upon it. This is a valuable asset to any business, it helps a business adjust its policies and increase its value to its customers.
How to apply it?
Ask about the experience of using your business product or service process like
How quick were they able to see results or its results like
What do they not like from the on-boarding, engagements, sales, deliveries, etc.
Continuously improve based on customer suggestions and preferences.
Surprise and Delight:
Surprise customers with exclusive perks or unexpected gifts. Everyone loves surprises or don’t you? Well, I do and always will.
Create memorable experiences that customers aren’t expecting and that way, it makes them feel seen or heard which is what we all love, BEING RELEVANT.
How to apply it?
On their second purchase, give a free product or service that don’t cost much but valuable
Help deliver free
Volunteer a staff to help package their goods to their vehicle spot
Community Building:
Foster a sense of community among your customers. Most brands are coming to the knowledge of this and taking advantage of the community building strategy. Encourage interactions, reviews, and user-generated content with your customers. Create content that would make them say their opinions or include them in your business growth. That pride that comes with you being part of a business success story is never overrated.
How to apply it?
Get customers to create content on how they use your product or service
Create community using various channels as Telegram, Email list, Whatsapp, Instagram group, etc.
Give tips and pro of your business value and seek their thoughts on it
Share opportunities relating to each customer needs and that way you build trust
- Personalization:
Tailor marketing messages and offers based on individual customer behavior. Use data analytics to understand and anticipate customer needs.
How to apply it?
Use/call names when delivering
Add names to your Email automation process
Add names when reposting
Regular Check-Ins:
Reach out to customers periodically to see how they’re doing. Offer assistance and show genuine interest in their satisfaction. Remember I said interact with customers aside business transactions! A little “Hi” or reaction to their content or affairs can build brand credibility.
How to apply it?
Direct message them on their social media channels or messages
Call when necessary
Easy Transactions:
Simplify the buying process and ensure a smooth user experience. Use tools that aids in easy transactions, you do be surprised that its part of a reason customers buy. I have heard of such scenario where a customer testified that because a business has a smooth payment method she always wants to patronize them. Minimize friction points in the customer journey, people are mostly impatient.
How to apply it?
Have different bank details if necessary
Use Point of Service (POS)
Have options for cash, withdraws, etc.
Make payment process different from purchase stand
Exclusive Access:
Provide VIP access or early-bird opportunities to loyal customers. Make them feel valued and appreciated. It’s simply using the pride technique for business marketing.
How to apply it?
Create tickets for VIP’s
Create intriguing product/service for luxury purpose only
Customer Education:
Offer resources and information that help customers make informed decisions. Position your brand as an authority in your industry. There are cases as creating digital products that explains your business value or information related to your business.
How to apply it?
Create E-books
Check out these digital products example
Applying these strategies collectively and consistently can significantly enhance customer retention, contributing to long-term business success. Tailor them to your specific industry and customer base for optimal results.
Check out how to manage difficult customers. It’s one thing to retain them, and it’s another thing to understand their tolerance method.
