A cohesive strategy for customer retention, which includes the process of increasing the number of repeat customers as well as the profitability arising out of such existing customers, is on every CEOs wish list today. And as important it is to acquire new customers, it is equally important to expand the life cycle of the existing ones.
Many studies have proven that customer retention is both less expensive and more effective than customer acquisition for improving business and boosting sales. This fact is affirmed in the book Marketing Metrics, which states that businesses have a success rate of selling to an existing customer between 60% to 70%, whereas the success rate of selling to a prospective customer is as low as 5% to 20%.
Successful customer retention is the outcome of implementing effective retention strategies or programs, which help multiply profits by efficiently retaining your customer base. Here are a few strategies that we think will work wonders to increase both customer retention and profits for your organization.
The need and preferences of your customers change with time. Hence, you need to constantly re-engage with them to find out what are they focused on at present, which type of service or product they prefer, etc.
Maintaining a frequent calendar for communication and leveraging feedbacks as well as surveys goes a long way to ascertain your customers’ needs and preferences and know more about them. A happy customer is always willing to do business or buy a solution/product from you than looking for a competitor. Stay connected. Periodically keep informing them about your new offers and services.
A strong relation always exists between a customer and brand. Rebranding assures the customers that you are concerned and aware of their choices and making an effort to be in tune with the market needs. This is a spill-off of the strategy mentioned before. Knowing your customers and engaging as well as building on their trust and relationship will provide insights to deliver value through your product, making rebranding an easy process.
Strive to constantly improve your services. One great way to do this is to learn a lot through customer complaints. Complaining customers are the biggest marketing assets. Looking at the complaints is a great way of knowing how your products/services/brand needs to improve. It also provides insights into what your customers expect and makes it easier to offer improved services.
Another way is to roll out surprise offers or packages. Unplanned valuable offers always make customers happy. Offering periodic special discounts demonstrating an additional value for the product works as well. Delivering par expectations is an excellent way of retaining customers. Over delivering on your promise is a way of procuring repeat business.
Create an intuitive and user-friendly website. When your customers visit your website, they want easy navigation, and a comprehensive, updated, and responsive interface. Make sure it is easy to find information on your products or services. Use the art of engagement and understand the persona of your customers to design a website that delivers more than just aesthetics. Ensure your site works well on smartphones and tablets.
With your customers getting more tech savvy, it is essential to design your website to respond well to the modern gadgets of the day. Reduce the entry barriers to your site, provide easy access, and offer easy options to make a repeat purchase or to avail a repeat service. Give your customer the reason to stay engaged and revisit your site time and again.
To do all of the above, you certainly need an effective and comprehensive CRM platform that integrates all your martech tools and does justice to marketing programs. However, not all CRM platforms are the same, hence, choosing the right platform to suit your needs is important. With a user-friendly CRM platform, it becomes easier to connect with your customers, monitor customer behavior, track purchase history, leverage various data to make informed smart decisions based on the insights gathered, and reengage with your customers as and when required.
Existing customers are always your best asset. They know your brand and products and appreciate your services. Focus your time and energy to keep this group of customers happy. Continuously refining your approach will make your customer retention strategy stronger and more effective. Which of these customer retention strategies are part of your plan?
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