After making a quality product and identifying your target market, your company is well on its way to growing. Staying competitive in this digital era is harder than you think though. Consumers are constantly exposed to advertisements telling them to switch to another business.
Without a proper client retention strategy, there’s nothing you may do to convince them to stay. This is why you must dedicate as many resources to keeping existing customers as to selling to new ones. However, there’s more to it than answering messages and taking calls.
Read on to learn about client retention, including why it’s important and how to foster it with every new client you encounter.
What is customer retention?
This is the process of turning one-time clients into repeat buyers, and the main objective is to keep the customers that you have now. The methods of keeping customers engaged vary by industry. An online store has a different strategy than a software developer, for instance.
Why is client retention important?
Most of the time, companies focus more effort on acquiring new clients than retaining them. There are actually several reasons why it’s better to concentrate on retention than acquisition, such as:
- Customer acquisition is about five times more pricey than customer retention.
- Loyal customers are five times as likely to repurchase, five times likely to refer, and four times likely to try a new product.
- Increasing retention leads to an increase in profits of between 25% to 95%.
- Selling to an existing customer has a probability of 60% to 70% compared to selling to a new customer at 5% to 20%.
- Around 33% of customers consider immediately switching to a different provider after poor service.
What are the ways to retain customers?
A client retention strategy is essential to deliver great experiences that encourage customers to stay with your brand for years to come. Not only will they enjoy the full value of your products but also inspires them to share their reviews with new clients.
Here are 5 tips for making an effective customer retention program:
Tip 1 – Examine the churn rate
Customers leave your company for a variety of reasons, and understanding these help you reduce the number of people who decide to buy from another store. Determine how you may keep consumers happy with your offerings through the different tools available online.
When you know which type of clients are likely to churn, you may take actionable steps to prevent them from leaving. For example, you may send them a follow-up email asking what made their experience unsatisfactory then, as a gesture of goodwill, offer a discount for their next purchase.
Tip 2 – Personalise their experiences
A study on SmarterHQ reveals that 72% of consumers prefer to engage with brands that offer personalised messaging over others. Meanwhile, BRP Consulting reports that 64% of customers are fine with businesses saving their purchase preferences and history if it gives them more personalised experiences.
One way you might connect with your clients is by using Customer Intelligence Platforms or CIPs. These allow you to collect and analyse customer data so you may tailor your offers according to their individual needs. Two of the top CIPs worth using are the Accenture Insights Platform and Oracle Data Cloud.
Tip 3 – Make a customer feedback loop
This is the practice of responding to clients whenever they leave feedback about your products and/or organisation. It’s one of the most effective ways to improve your products and services in accordance with their satisfaction. It helps you gather data and learn from their suggestions to enhance your offerings.
Typically, the feedback loop may be divided into three stages with the first being ‘gathering information from customers’. The next stage is ‘evaluating the data you have gathered’ so you know which suggestions are valuable. Finally, you reach the stage of ‘applying the lessons into the product or service’.
Tip 4 – Create a loyalty program
A loyalty program places you and your customers into a partnership. You offer them something they value in the form of a reward so they return more often. They experience the satisfaction of having their needs met through your products while receiving a bonus.
To make a loyalty program, consider the customers you have now such as their top purchases and their forms of payment. Establish goals and measure the metrics to determine how well your strategy is working. Remember to stay within your budget when it comes to the rewards too.
Tip 5 – Incorporate social responsibility
Make clients feel good by letting them know that they are making a positive impact on other people’s lives. Social responsibility refers to activities that help people or even animals in need. Engage in it in your business and let your customers know about it.
Begin with the basics like paying your employees a good wage with benefits plus reducing your carbon footprint. Source sustainable materials for your products and packaging and recycle as part of your everyday operations. Maybe you might donate to saving endangered species or protecting natural habitats as well.
Hire a customer retention specialist
Though we only gave 5 tips on how to make an effective client retention strategy, those alone require much work and patience. Smaller companies might have a hard time adding them into their already busy schedules, so it’s a smart idea to get expert help.
Remote Workmate is an offshore staffing agency with a goal of connecting businesses like yours to virtual professionals who meet your needs. We screen our candidates to ensure that they meet stringent standards before we endorse them to you. Hence, you may rest assured that they are some of the best.
Aiming to hire a customer retention specialist?
Book a call so we may discuss your recruitment requirements.
