4 Proven Customer Retention Strategies You Shouldn’t Overlook.
By Stacy Ketiku
While many businesses spend so much of their time attracting customers, nurturing, and keeping leads engaged, retaining existing customers doesn’t receive similar attention. Just in case you had no idea, 68% of business and sales comes from existing clients, and this was confirmed in a survey carried out by SAS and Loyalty360. Customer retention strategies are those tactics and activities put in place by a brand to improve their customers’ experience, ensure that a first-time customer repeats a purchase, and eventually becomes a loyalist/advocate of the brand. Consistent sales is paramount for every business that seeks to be both profitable and sustainable. So rather than merely creating large marketing budgets and campaigns to attract new leads, also put up strategies to ensure that previous clients keep coming back for more. The customer retention strategies highlighted in this article applies to all businesses regardless of size or target market.
Don’t Just Sell, Add Value
Many marketers and business owners are quick to throw their products and services at everyone (including those who don’t fit in as their ideal buyer) via their social media platforms, website, email newsletters, and at any slight opportunity that they get. A common rule of selling is that people do not like to be sold to; this only gives you more responsibility as a business to put out value as often as you can. Let your audience see you as a thought leader in your industry and someone they can rely on for help if they run into problems your brand is out to solve. Adding value is a step toward building trust.
Let’s paint a real picture, shall we? After receiving a large sum of money as your family inheritance, you plan to seek for investment opportunities, but you are unsure of how to go about it. Would you speak to your brother who is a pharmacist, or call your friend who is an investment banker? I guess we both know who you’ll talk to. There are several free advice on the internet, and sometimes, people get confused about who to listen to or even trust. They want to know about tips, strategies, best practices, how to …, amongst other concerns. People are looking for brands that are ready to feel their pains, build a relationship with them, and leave them satisfied. If a customer has gone as far as buying your product for the first time but switches to another brand the next time they needed your product, then you need to sit back to determine what you aren’t doing correctly.
Furthermore, being transparent and stating out all your fees/charges, terms and conditions are very important. Customers only want to do business with a brand that is open and straight-forward.
Give Promotional Offers or Loyalty Benefits
Receiving freebies and other benefits from a brand is pretty exciting, that’s why many run to those who say, ‘buy one, get one free’. While your customers invest in buying from you, you should also create opportunities to give back to them. This is one strategy that has proven to work all the time. When your product is top-notch, your service delivery is impressive, and you have incentives and offers in place, customers will automatically become a massive part of your marketing process. They will get involved in referral marketing.
Personalisation and Building A Relationship
Many online brands already do this, so should your small local business. In this age, data is as valuable as cash so start getting useful data from your customers. Be careful not to seem creepy when requesting for their information; instead, make them understand that you are only making efforts to personalise their experience with your brand and serve them better. Some demographic information you can request from a first-time customer includes their name, email address, gender, date of birth (depending on your brand), location, and more. Collecting their date of birth is acceptable as everyone would love a nicely crafted note on their birthday; this simple act shows that they are valued and remembered.
Lastly, never be too focused on getting leads that you then forget about those who have indicated a high level of interest in your business by committing their time or money. When you pay attention to your old customers, there’s a high chance of you winning them over in future. Feel free to check out more articles to grow your business and attract more customers on our blog.