Customer retention is the name given to a company’s ability to retain customers over a prolonged period of time. It is the key to driving traffic and boosting profits. With the cost of onboarding a new customer significantly more than the cost of retaining an existing customer, the process is more important than ever before. Continue reading to find out a number of handy tips and tricks to improve customer retention.
Reward loyal customers
One of the most effective ways of retaining your existing customer base is to reward them for their repeat custom. If shoppers do not feel valued or appreciated, they will abandon ship and take their custom elsewhere. If your competitors are offering a series of offers or promotions for existing customers, for example, consumers are much more likely to spend their hard-earned cash on their goods and services as opposed to yours. As a large corporation, it can be easy to take your customers for granted. By offering customers rewards at important milestones or intervals, such as six months or a year, you can increase customer satisfaction levels and boost sales. You may also be able to reward customers for referring your brand to a friend or family member by incorporating a series of offers or promotions directly within your customer survey feedback. By knowing how to maximise your retention marketing strategy, you can retain your most important customers.
Integrate a customer feedback loop
Customer feedback is the best way to find out exactly how new and existing customers feel about the goods and services on offer. As well as attracting customer feedback, however, you must also find a way to share this information with your organisation and existing customer base. This builds a sense of honesty and transparency between both parties and allows shoppers to make an informed decision based on past customer reviews and testimonials. A customer feedback loop can collect, analyse, and distribute comments to paint the business in a positive light. There are several ways to integrate this. For example, you may send recent customers a survey asking them to describe their shopping experience in greater detail. User testing or focus groups are also common customer feedback methods. Once you have gathered the results, you should analyse them and monitor them for customer behaviour and trends that may affect the daily running of your business going forward. A solid retention marketing strategy is the key to ensuring your customers are happy to shop with you and would not hesitate to recommend your goods and services to others.
Automation is the process of automating all or a portion of your existing software processes. One of the most popular is marketing automation. Manually managing your customer base can be costly and time-consuming. Automation can allow you to stay ahead of the curve and stand out from the crowd. If implemented correctly, it can also re-engage your customers and contribute to greater trust and communication between both parties. There are a number of processes automation can help with. For example, by relying on manual methods to curate and deliver weekly text and email-based newsletters to your existing customer base, you may end up wasting a considerable amount of time, money, and effort. Standardised automation can streamline your daily processes and manage customer communication in a way that is quick and effective on both ends.
Establish a communication calendar
A communication calendar is similar to an editorial content calendar in that it helps businesses to keep in touch with customers at regular intervals throughout the year. It is programmed to keep track of events, offers or sales due to occur at that particular period in time. If you are a small business, it can also be programmed to include customer birthdays so you can send promotions or discounts to your existing customer base on their birthday using automation software. You can also send email prompts to remind customers of an upcoming sale or current sale that is coming to an end. Over time, this can enhance engagement with your existing customer base and lead to more sales in the long run. Regularly scheduled communication has also been proven to eliminate post-purchase doubts for new customers, increase trust, and encourage shoppers to return at a later date.
Measure customer lifetime value
Customer lifetime value, or LTV, is the measure of the total worth of a customer to the business over the entire period of the relationship. For example, if a customer spends an average of £100 a month on your goods and services and has been a regular customer for 12 months, their customer lifetime value would be £1200. It takes a considerable amount of time, effort, and money to attract a new customer. If a particular customer has a high customer lifetime value, you must do whatever it takes to ensure they continue to shop with you as opposed to one of your competitors. You may also choose to prioritise VIP customers over customers that have only made a one-off purchase over the years. They are much more likely to refer a friend or recommend your business to a loved one which can boost sales in the long run.
Host live webinars or events
Communicating and engaging with your customers in a number of different ways can help you to retain your existing customer base. Depending on the goods and services you offer, you can host a live webinar or event on a regular basis to interact with loyal customers or revive a failing business. Even if attendees are unfamiliar with the goods and services on offer, online events can convert leads to paying customers in a matter of minutes. A number of successful corporations launched their business by hosting live webinars or events. It is one of the most effective ways of enticing interested consumers and generating sales. It gives viewers the opportunity to find out everything they need to know about your brand by asking questions and making suggestions as necessary. You can also boost brand awareness by sharing content from your live webinar or event on your various social media channels and website.
Personalising your communications with your existing customer base can encourage them to continue shopping with you and spend more money. It should be a critical component of any business’ communications strategy and one that, when done right, can enhance customer satisfaction levels over time. Personalisation is key in order to stand out from the crowd and increase customer retention. A number of well-known brands are already benefitting from this technique. Email personalisation is the most common method, but it can also be implemented through live chat, FAQ pages, newsletter correspondence, weekly reports, product recommendations, and even local weather patterns. By knowing how to reach out and grab your customers, you can maximise customer satisfaction levels and boost profits.
Customer retention is the key to business growth as well as greater profits. Neglecting the needs and wants of your existing customer base can have a disastrous impact on the success of your brand going forward. By knowing how to keep customers coming back for more, you can stand out from the crowd to out-smart, out-perform, and most importantly, out-sell your competition.