Customer retention is one of the most critical aspects of business growth. Shoppers that keep coming back are your best cheerleaders, and without them, you don’t have a business.
Most companies focus on customer acquisition and conversion rates rather than retention. They spend huge amounts of time and money trying to bring in new customers but forget about the ones they already have. However, if you want to build a thriving business, your primary focus should be increasing your customer retention rate.
Studies show that increasing your customer retention rate by just 5% can increase your profits by up to 95%. It also costs about 5 times more to acquire new customers than to retain existing ones. Retention is an important aspect of business strategy, and it can help businesses gain a competitive advantage.
The goal is to keep your current customer base, increase loyalty, and hence long-term profitability. Making sure your buyers become repeat customers also keeps them from switching to a competitor.
The power of a loyal customer base is unmatchable. Continue reading for 6 powerful strategies to help you retain customers and reduce churn.
1) Second Time’s The Charm
Retargeting customers is a must. As mentioned earlier, it is much more expensive to acquire a new customer than it is to retain one, and regardless of the industry you are in, this premise still holds.
You can’t stop marketing to someone just because they shopped once. According to various studies, a customer who shops twice is 9 times more likely to return than a customer who only buys once. That’s why a second sale is so instrumental in converting your customer into a repeat buyer.
Marketing to them can be complex. You need to reach your customer at just the right time. The timing to reach out to them after their first purchase will depend on your product, its usability and its shelf life. If you wait too long, their excitement will wear off, or the customers might forget about you.
The power of automation opens up a whole world of possibilities when it comes to retargeting customers. Automation not only saves time and resources but also makes it possible to reach out to multiple customers simultaneously while keeping interactions relevant and personalized.
2) Surveys: A Perfect Tool for Personalisation
Surveys are powerful tools for building customer engagement. Knowing how customers feel about your brand and the product is one of the best tools you can use to retain them.
Customers love being heard and feeling like you are prioritizing their needs. Not just that, but you can also re-engage a customer that is giving up on your brand.
Get to know what they like about you, the areas they’re not satisfied with and why. Surveys can be multiple-choice and free-text. The former may get more responses, as they are easier to fill, however, free-text surveys allow customers to express themselves and experience in their way. You can also reward them for filling out surveys. This could be tricky as someone could submit a survey just for the reward, so make sure to maintain a balance.
Use these surveys to personalize the customer’s experience and develop engaging content. This is sure to turn things around for your business.
3) Data & Analytics Are Powerful
Let customer data work for you!
This is one of the best ways to create retention strategies. Some metrics that will help you understand how your marketing campaigns are affecting your retention rates: churn rates, customer engagement across channels, repeat purchase probability, average order value, and customer lifetime value.
Tracking these will show you how many customers you’re losing, how likely a customer is to shop the second time, and the value of every repeat order. Use this data to determine what your spending value should be to retarget one-time shoppers.
Determine the value each customer brings to your business, optimize your resources for what matters and focus on providing what is valuable.
4) Master The Art Of Under-Promise and Over-Deliver
Over-promising and not delivering is why most brands lose customers’ trust. Build customer expectations your way and over-deliver every time.
A strategy that works, is to under-promise. Build lower expectations, so then when you deliver it looks better. This gives your customers the feeling that you are going above and beyond for them, and will keep them returning for more.
5) Incentivise Loyalty
Thoughtful gestures go a long way with customers. Reward them for sticking around, and make them feel special and appreciated.
Discounts and offers are a common go-to but think of things that will make your customers feel good about using your product. Something small like a thank you note can make a big impact and keep your customers coming back. Sending bonuses and surprises when returning customers places their order is also a great way to keep them happy.
This becomes beneficial for both you and your customers: they get more value each time they shop, and you benefit from their repeat business.
6) Engage Customers Through Email
Email marketing is the backbone of customer engagement and crucial for your retention toolkit.
Emails give you a chance to build a relationship with your customers before they shop and sustain it after their purchase. Each message you send should add value to your customer’s experience.
Make sure to send personalised messages and follow up emails regularly to remind customers of your brand and to maintain the connection.
Looking to build powerful customer engagement and retention, lets talk: firstname.lastname@example.org