Customers are the lifeblood of any business. Without them, no entrepreneurial endeavor will prosper, no matter how brilliant it is. That’s why brands must constantly carry out consistent marketing efforts and find ways to improve the customer experience.
Here, the goal is two-pronged. The first and arguably more obvious one is attracting new customers. The second is retaining and keeping existing clients happy. Unfortunately, most businesses often fall short on the latter since they can be under the false assumption that all the clients they gain will stay with them for the long haul.
This is precisely why an online loyalty program is vital. Now that competition is at an all-time high, as a business owner, you’ll need to know what your customers want and need to keep them by your side.
What is Customer Retention? Why is it Important?
Customer retention refers to a business’s ability to keep existing clients and drive repeat transactions. With the help of a strong retention strategy, companies can provide a pleasant experience for their clients, enabling them to earn their trust and build a loyal customer base.
While customer acquisition should still be a priority, doubling down on customer retention can bring exciting opportunities. Research shows that loyal customers can spend up to 67% more than new clients, and this figure should greatly emphasize its importance. To build trust and acquire customer loyalty, here are nine proven retention strategies you should look into.
9 Proven Customer Retention Strategies
1. Provide excellent customer service
Excellent customer service is the best way to optimize your retention rates. If you’ve ever encountered a rude customer support rep who failed to address your concerns, likely, you’ll never purchase from that brand again.
Keeping this experience in mind, provide top-notch customer service by training your team to be polite, responsive, and knowledgeable of your services. If customer service isn’t one of your company’s specialties, you can always partner with an outsourcing agency.
2. Gather and analyze existing data
In the world of marketing, nothing is more valuable than data. Gathering key metrics on customer retention will show which aspects of your strategy are working and failing to deliver. For example, reviewing your churn rates will grant you more insight as to why certain customers don’t make repeat purchases. In turn, using analytics tools and the like will let you adjust and employ better retention tactics with no hiccups.
3. Send out customer surveys
There’s no better way to know what your customers are thinking than to ask them directly. Sending out short satisfaction surveys can provide a ton of value. Their answers will inform you of your strong points and the improvements your brand needs to make. Additionally, allowing your customers to provide feedback is a great initiative to show that you value their thoughts and opinions.
4. Personalize all your interactions
Today’s customers greatly value brands that pay attention to their needs and preferences, making personalization the key to your success. Instead of sending out templated emails and generic offers, personalizing your promotions and messages is an effective way to keep them interested and loyal to your brand. Something as simple as calling your customers by name can already make them feel good!
5. Educate your clients through timely and relevant content
Content marketing won’t just drive conversions. It’ll also strengthen your online presence. While the main purpose of blogging would be to establish thought leadership, educating your audience on your services and industry can help you establish and maintain trust.
If you plan to build a blog, creating articles for different stages of the buyer’s journey will be your best bet. Write-ups that give a comparative overview of services or provide useful tips and insights into your products will help you reach new customers and call out to past clients who may need your services again.
6. Utilize automation tools
Handling many tasks decreases the quality of your work, which also rings true for your customer experience team. To help them out, invest in the necessary tools and automate certain processes. Giving them an email automation software or a reliable eCommerce platform will simplify their workflow and allow them to dedicate their full focus to their clients.
7. Look into Customer Life Value (CLV)
CLV refers to the estimated profit your business could make from a specific customer. A strong understanding of a customer’s lifetime value will allow you to shift from short to long-term customer retention strategies and pay attention to relationship building.
You must understand that not all your customers have the same value. Ultimately, it would be best if you double your efforts on clients who have the potential to become advocates of your brand.
8. Give gifts and discounts
A simple gift goes a long way in convincing customers to stay loyal. In addition to freebies, discounts prove effective to repeat patrons who are greatly satisfied with your products and services. Keep giving these out to communicate your appreciation!
9. Implement a customer loyalty program
A customer loyalty program will make your unwavering patrons feel special. Giving them access to exclusive deals, benefits, and other exciting rewards shows that you value their support and encourages them to make more transactions. Take care of your customers, and they’ll take care of you in return
Keep Your Customers Happy
Customer retention strategies boil down to keeping your customers happy so they will keep doing business with you and refer you to their peers. Yes, one happy customer could mean ten new ones! So keep these strategies in mind and improve your sales in no time.
If you’re planning to implement a loyalty program, having a loyalty suite will be vital to your success. Rush provides one of the best loyalty platforms in the market so contact us to book a Rush Loyalty demo today!
