5 Customer Retention Strategies that Work
Gone are the days when customers would stay loyal to companies for long periods of time.
With each passing day, the amount of trust a customer puts in a brand is only decreasing. So, what do you do in such a situation? Is it okay to just let your customers go?
Think about this – when was the last time you made a constant effort to re-engage an existing customer?
Sadly, most business owners won’t remember this. Today, a brand is so obsessed with lead generation that they become almost careless when it comes to customer retention.
Though this behavioural shift of customers is natural, are we as marketers powerless to stop it?
If you’re yet to market to an existing customer after a sale, now is a good time to develop a cohesive customer retention strategy.
Top 5 Strategies to Keep Your Customers Coming Back
- Track customer behaviour: If you want to see a customer come back, you need to understand what makes them tick. Securing detailed insights will help you target customers with messages that will interest them and will help you tailor your product/service line to their needs. Google analytics and Facebook Demographics are ways to begin.
- Create a loyalty program: When you give your customers some kind of incentive, they’ll definitely come back and shop with you. However, once you get them to opt-in to your loyalty program, you need to make them feel special by hooking them up with offers, sneak-peak into new products and exclusive deals.
- Follow up with customers: Purchase frequency is the backbone of customer retention. Studies reveal that after a customer’s first purchase, there are 27% chances that they’ll return to your store. If you really want them to buy from you, you need to make an effort. Use various marketing tactics such as email, SMS and social media to your advantage to build a relationship with your customers before and after their initial purchase. From sending out thank you emails to asking them for their feedback after they’ve left your store, communication is vital if you want to retain a customer.
- Offer surprises: If you really want to show your customers that you truly care about them, then you must go beyond the normal service or product you offer. Surprising them with a birthday coupon or a handwritten note/postcard on special occasions is the best way to keep in touch. Departmental store, Westside aces the game by sending out all their customers a 20% surprise coupon on their birthdays. This is also a sure-shot way to increase profits as most customers tend to spend more than the coupon value.
- World-class customer service: Most people discontinue purchasing from a brand that offers poor customer service. When a customer needs support, they don’t want to wait for days to get a resolution. They key to retaining customers is offering an impeccable customer service. Start by providing multiple channels where customers can raise issues including phone, email, social media and live chat. If you’re proactive in solving the issue in the first attempt without escalating the ticket, a client is more likely to purchase from you again.
The key to generating high levels of customer retention is by focusing on them and their needs. Remember, ‘customer is king’.
Have any other strategies? We’re all ears.