Is there something better for your business other than acquiring one new customer? Yes, of course: retaining an existing customer! Customer retention reflects the ability of a company to deliver value within its competitive market. It is also widely known in the business world as one of the most effective techniques to increase the Lifetime Value LTV of a customer and make sense of the acquisition cost spent to bring the customer to the business in the first place.
Try these 8 effective strategies to build a robust customer retention strategy that inspires loyalty and keep customers from defecting or going away:
1. Inspire with a mission
Ever heard of the sales concept that states that customers don’t buy “what” you do, but “why” you do it? That is what’s meant by inspiring your customers with a mission that makes them fully understand the reason behind doing what you are doing and offering the services you provide. In other words, inspire through what you stand for, not through tactics and systems. Position your brand around something that your target audience cares about.
2. Empower with convenience
Being innovative in your customer acquisition strategy is vital to ensure that your customer get a flawless customer experience. In other words, identify your customers’ needs and address them in a creative way. Make your products as accessible as possible; it is just that simple. Identifying the desires and behaviors of your target audience and creating tools and systems that empower them is the key. For example, if you are in the coffee business and you know that your customers are in a hurry to pick up their coffee in the morning, adding a mobile app ordering feature with online pay before even arriving at the coffee place will save them time and give you a competitive advantage. This feature alone can be convenient enough to keep them coming back to you.
3. Leverage personalization
Even if your products are available online or through self-service systems, people are social by nature, and they still love dealing with other people. It could be a bit challenging to make your business stand out as an authentic and personalized brand. Don’t be afraid to add some personality to your brand. A good exercise is to imagine that your brand has a gender, personality, character, tone, and voice. Unify these across your in-person and omnichannel communications and interactions.
4. Use gamification & referral programs
When customers are encouraged with rewards, they are automatically enticed to buy and refer a friend. It is also about sharing their buying experience with a close friend of theirs, so your brand should give them a delightful experience reflecting on your brand’s character and value. The key is to focus on strong incentives and gamification to get people invested. An example is automated reminders on abandoned carts with discounts or referral offers. This gamification and referral strategy empower and encourage your customers to become advocates for your brand in the process. When done right, referral systems can be useful for retention.
5. Use experiences to elicit positive emotions
To create positive sentiments with your customers, brands turn to experiential marketing, as it has proved to be one of the most effective customer retention strategies and a great way to generate brand advocates. Tapping into a positive hype around an event, providing great experiences could reach beyond the point-of-sale, like beverage companies adopting World Cup themes every 4 years, etc. The key is to look for creative and innovative ways to create positive feelings in the form of new experiences, even if it is a bit far from your primary services, products, and value propositions.
6. Educate your customers
Knowledge is one of the most valuable things you can offer your customers, or even just your website visitors. Purchasing from you is not the end; on the contrary, it is the beginning of keeping this customer in the loop, always coming back to you when they need your services and products. When customers rely on a specific brand for general product knowledge, their relationship is not just selling-and-buying, but rather of trust. An example could be a leather shoes and bags business that usually educates their customer on the proper ways to care and clean leathers or a customer service company, always having courses and videos to inform people of excellent customer service best practices.
7. Surprise and delight
Send your customers special offers and discounts on their birthdays, or surprise them with giveaways for their pets or children. Customers love brands that care, not just sell. Using the principle of surprise reciprocity to delight your customers with spur-of-the-moment gifts and cards will strengthen a bond between you and your customers.
8. Offer after-sale support
Supporting your customers and knowing how they spend their days using your products is an art you need to master. Giving them the right support at the right time is an excellent customer retention technique. Spend more time knowing how your target audience looks for help or information related to your services and products and make sure you are there when needed.
Always thank your customers to be a beloved brand, not a faceless website, and as much as a business tries to avoid this with all their might, apologize when a mistake occurs and show how well you have handled it. A good customer retention program stretches across teams and departments. Despite the allure coming from capturing new customers, building customer loyalty, and keeping customers returning will continually result in a higher ROI.
