Customer acquisition and customer retention: businesses need to continuously work on these two things to survive in a competitive market and grow. It has been noticed that many decision-makers keep all of their focus on acquiring new customers while completely ignoring the other half.
Businesses have to strike a balance between their customer acquiring and retaining efforts. In fact, they need to be more diligent about customer retention because it is easier to sell to those who have already bought from you. Market studies suggest that 50% of existing customers are more likely to buy from the same business. It has also been concluded that repeat customers tend to spend more than first-time buyers.
In short, a business must be proactive with its customer retention strategies. This won’t just boost its sales but will also improve its reputation. People are more likely to put their trust in companies that cater to a large base of repeat clients.
In this piece, we will share various tips that can help any business improve customer retention irrespective of its niche and target market.
Create a Loyalty Program
There is no such thing as a free lunch, especially in the corporate world. If you want to make sure customers keep coming back to you, you need to provide them some tangible incentive. Loyalty programs offer ways to ensure your existing customers don’t break away and go to competitors. Building and supporting a loyalty program may affect your bottom line for the time being. However, the loyalty programs’ long-term financial benefits make them worth the short-term impact.
While building a loyalty program, take care of these things.
- Make sure it involves realistic goals and targets. This means customers are not required to break their banks to sign up for the loyalty program.
- Make sure it is inclusive and offer value to customers as well as their families.
- A loyalty program with personalized incentives and offers will build a more dedicated consumer base.
Focus on Delivering Better Customer Service
Keep in mind that your marketing and sales efforts don’t conclude at the end of the sales funnel. Once you have made a sale, you need to provide impeccable service to customers for all their complaints and queries. You need to maintain the same standard of courteous and professional customer service no matter how infuriated and livid a customer is.
High-quality customer service goes a long way in establishing your business’s good reputation and improving your retention rates. We would like to use a comparative example here to highlight the importance of good customer service.
Let’s suppose Customer A buys a product from you but doesn’t like its quality and asks for a refund. Your customer service attends Customer A’s grievance, apologize to them and process the refund promptly. Despite not liking your product, this seamless return experience will increase the chances of Customer A to come back to you.
On the other hand, Customer B buys a product from you and likes it but has some questions regarding its proper use. Even after reaching out multiple times, they don’t hear back from your customer support. This poor customer service will decrease the probability of Customer B buying from you again, even when they don’t have any issue with the product.
Add a Touch of Personalization in Your Communication
Make your customers feel that they are not just faceless selling prospects for your business. This is possible if you improve the level of personalization in your various communications. You can do this by greeting them on their birthdays and their anniversaries. Also, send different customer clusters different discount offers based on their past purchasing history and journey with your business. A good email automation tool can help you establish that level of personalization.
These various pointers of personalization can make customers stay and continue to buy from you without looking elsewhere.
Build an Online Community
If you want to retain customers, you need to provide them value outside of your offerings. This is possible by establishing an online community of your existing consumers. Social media platforms can let you build such forums without putting in too much effort. While making such an online community and forum, make sure that your business is also an active participant there.
Post valuable content and information for free. An online community also enables a business to resolve customer complaints and address their grievances at a more personal level.
Boasts a Good Corporate Social Responsibility Plan
Today, customers are more aware of the consequences of their buying tendencies. They want to know how the companies they support fulfill their social responsibilities. This is why companies now have to establish robust CSR plans that help bring in some useful change in society.
If you want to retain socially responsible customers, you need to turn your business into a socially responsible entity. From eco-friendly practices to working against animal cruelty or striving for women emancipation— there are many areas where you can base your CSR plan.
Keep Yourself Updated
You need to keep your products, services, and prices in sync with the changing times. We are living in a digital age where things become obsolete very quickly. You need to continuously ensure that your business is fulfilling the contemporary demands of consumers. Also, set competitive price points that are in line with the rest of the market. If you successfully adapt your business components with changing times, you can keep hold of many of your customers.
Lastly, keep a close eye on what your competitors are doing to improve their customer retention. There is no harm in getting inspired by their successful retaining tactics and strategies. Business Marketing Solutions Group can help your business in many ways to improve customer retention through its digital marketing expertise. Its experts can set up an interactive community of your business on social media. They can also help you in launching personalized marketing campaigns. The firm can also establish a robust customer service interface on your website.