The process of converting one-time shoppers business into recurring customers is known as customer retention or client retention. Perhaps, customer retention is all about keeping your current customers.
According to some estimates, it costs five times as much to acquire a new client as it does to keep an existing one. Others argue that keeping consumers is worth seven times more than acquiring new ones.
Acquiring a new client is an exciting prospect. Many organizations, on the other hand, make the error of disregarding their existing clients. They focus their marketing efforts on recruitment rather than customer retention.
retaining existing customers is less expensive, also a solid strategy for satisfying customers and turning them into endorsers.
How to improve customer retention?
Recurrent clients are 50% more likely than new consumers to purchase from you, and they spend 33% more. Keeping your consumers is thus not only less expensive, but also more profitable in the long term.
Customer retention marketing can be done in a variety of ways. Here are the top techniques for raising your client retention.
Keep in touch and interact
Notify your customers about rewards programs, product updates, and any other stuff you believe they’ll enjoy. Send them promotional items with your company’s logo on them.
To entice individuals to participate, invite them to share their stories or hold contests. Forecast future challenges and provide creative solutions to stay one step ahead.
Don’t panic if your endeavors don’t immediately result in high sales. Perhaps, they will help keep your brand in front of your clients’ minds.
Utilize social media
After the initial sale, social networks are highly effective for keeping in touch with customers. By showcasing the human side of your business on social media, you can engage your customers and establish trust.
Keep an eye on your consumers’ thoughts, desires, and motives. Identify and reward your most devoted clients. Deliver excellent customer service, so you may help to change the unfavorable opinions that some of your followers may have.
To ask questions, file concerns, and address product issues, consumers have resorted to social media channels. Use it to show that your organization cares about and listens to its customers.
Solve the issue
If a client has a problem, make sure they can speak with a live, considerate person, either in person or over the phone. Individuals like engaging with one another, even in our digital world.
Customers think it takes too long to speak with a live representative over the phone or via online chat. 75% saying it takes too long. Perhaps, referring irritated clients to a FAQ page or an email contact form will almost certainly make things worse.
Give your staff the power to deal with problems as they arise. Employees who are kept updated on a regular basis and believe they have an opportunity to make a difference are more willing to fix problems.
Maintain a steady pace
A customer poll found that a response time of 24 hours or less is deemed appropriate. Make certain that your customer service actions are consistent with the image you wish to present.
Set realistic goals
Having reasonable goals is critical if you want to enhance your customer retention rate. It may greatly affect your company’s ability to retain consumers.
Consider things like shipment times, for instance. When it comes to shipping times, most online retailers can’t match. Instead, focus your efforts on keeping your clients informed.
On your website, you can provide clear shipping information. Customers can receive emails informing them that their order is in the process and that their item has shipped.
Customer loyalty program
Your customer retention strategy should include a customer loyalty program. Such programs reward your clients by incentivizing them to return to your store.
Make your clients feel unique once they join your loyalty program by providing them with attractive offers. Such as, allowing them to get a sneak glimpse at new products and offering them special prices.
This royal treatment will make your consumers feel appreciated. And it is the cornerstone of your client retention strategy.
Market your customer needs
You want to boost your client retention rate. Perhaps, you’re not going to achieve it by sending them emails that drew them to your firm in the first place.
Consider experimenting with new content on your social media channels. It’s also crucial to consider why your followers loved it in the first place. Is the fresh content you wish to share going to put that existing relationship in jeopardy?
All those are concerns you might have to take as part of your entrepreneurial path, but make sure they’re measured ones. Sticking to what your consumers know, rather than what you know, is wise to follow when it comes to retention.
Here’s a quick breakdown of the advantages you’ll see from using customer retention strategies:
- According to Harvard, a 5% improvement in retention rate will enhance earnings by 25-95 percent.
- You may boost brand exposure and reputation by using expression advertising from your loyal customers. Gives you the chance to form positive relationships with your clients.
- Receiving feedback and listening to your consumers’ demands allows you to identify and address faults.
- Customers who are loyal to you in the past are more likely to attempt or experiment with new products. According to studies, it’s six times more likely.
- Customers that feel loyal to you are more inclined to forgive mistakes, which means fewer unhappy customers who fly off the handle.
To conclude, many business owners focus on gaining new consumers. Although you do need new customers, nurturing your existing base is just as crucial.
Rather than allocating all of your marketing budgets to recruiting new consumers, devote some resources to cultivating connections with existing customers.
These consumers are already familiar with your business. Perhaps, they will enjoy the fact that you’re still thinking about them after they’ve made a purchase.
You can do simple things to retain them. Such as giving custom logo products, interacting with them on social media or simply taking their feedback.