For every business, there are three important goals i.e. Leads, customers, and sales.
To build your business, you need to understand the importance of customers first. But most businesses are obsessed with lead generation instead of taking care of customer retention.
According to Marketing Metrics, the success rate of selling that existing customers offer is around 60 to 70 %.Unlike new customers, where you get 5 to 20%.
Relying on the customer who stumbles on your site, places an order once, and leaves. Instead of that focus on that loyal one who is purchasing again and again.
According to Brandogoaille, 12 to 15% of loyal customers can do more than 55 to 70% of sales.
Why Should You Care About Your Existing Customer?
If the benefits are not clear, existing customers give more sales than new ones.
That doesn’t mean your business doesn’t need new customers. Every business requires getting more customers to increase their reach.
Yet, your existing customers are the predictable and easiest source for generating more revenue. They understand your company and have the experience
More reasons that include why the business should take their existing customers seriously :
–Better conversion rates: Existing customers have confidence in what they are purchasing and they already have made up their mind to do the shopping.
–Better Improvement: You can listen to their feedback and do the improvement in customer services as well as satisfaction. They are the loyal ones who are genuinely interested in sharing their opinion.
–Less marketing: To start new business relations, you need to speed more than 16 times on new customers. The existing one saves you from that.
–Higher profit: According to Gartner group statistics, the business’s future revenue depends on 80% on existing ones and 20% on new customers.
–Lower costs: According to Bain and company, you need to spend 5 to 25 times more on new customers to get their attention but with 5% of investment in existing one can lead to 75% of the profit.
How To Reduce Customer Retention For Your Stores?
Customer retention is important for improving the overall sales but to maintain the brand image. With collections of activities, you can increase the number of repeat customers and get profit from each existing one.
For that, you require to use different strategies that focus on providing value as well as services to existing customers for better customer retention.
Offer Something To Surprise In Customer Services
Most people like having surprises. Not just it gives them a special feeling but also makes them feel good.
Surprising your customer can help you in nurturing the relationship, Also the customer will think that they are valuable as you are offering something without telling them.
It’s not important to spend a lot on surprises but make sure it does relate to your customer on a personal level.
Just like Jawbone did. They sent the handwritten notes to their customers and it worked in their case.
Image source: Twitter
Not just handwritten notes give personal value but also that the brand finds them an important part.
To have the customer trust and loyalty treads your brand, you might have to go beyond what you are doing now.
You can surprise your customers by motivating them. This also appreciates their work and effort which means they feel existing to do more.
Set Your Customer Expectations
Customer services are just not limited to attending to complaints and inquiries. It’s important to offer something to your customer that they can look forward to.
As of today’s market, the business requirements to meet customer expectations even when you are not getting feedback.
Well, it’s impossible to satisfy when you don’t know about your customers. So, it requires you to understand your customer intimately, look for what they desire and what can set the expectations.
According to the Harvard Business Review, the customers want to feel empowered and not controlled by brands. The business needs to act according to empathy.
When you meet their set expectation, you empower your customers.
Also, make sure you are honest with your services, so you know how far you can go.
Try To Over Deliver What You Promised
When you promise, you are in debt but what’s worse is you don’t fulfill it.
According to Business.com statistics, when your customer is dissatisfied, they will spread the words to at least 20 more persons.
A bad experience can turn down more people from being loyal customers.
To make sure you are not hurting your customers, the main rule is still there. It means “under-promise and over-delivers”
When you are following this, you are improving the expectation of your customer. Also with this, you fulfill the promise.
Only 25% of businesses are successful to deliver their promises and exceed expectations.
When you promise something to your customers, you are making it sensitive and also delicate.
Also when you don’t deliver, you are making your customer aggressive. That’s why to focus on overdelivering to keep them satisfied and happy.
Improve Your KPIs Related Customer Service
If KPI means Key Performance Indicator. And as Klipfolio defies, It’s a measurable value that indicates how effectively the business is achieving the key objectives.
The companies use the KPIs for understanding how they are reaching to achieve their set targets.
Image source: gooddata
Not just that but it’s also considered as a roadmap for visualizing the future that your business holds. And to consider which direction you should take.
When you do the study about your customers and key performance indicators understand if they are happy or not.
Use Automation For Engaging Your Customer Again
Automation means doing your most repeated tasks automatically but with the help of software. This also includes marketing automation,
When you do the monitoring and keeping the customers, not just it takes too much time but also requires extra effort.
There are lots of things that you might have to do but they need a fresh approach. With the help of automation, you can do the repeat task much faster and improve your re-engagement with the customer.
Also, it boosts better communication and much faster with the use of automation.
Build Your Trust Through Improving Relationships
Behind every successful business, the prime reason is the trust between partners and an idea into something huge.
Without having trust, the business would have died or worse never developed much more than just an idea.
The same goes for the customers, you build your relationship by doing little but continuous attempts.
During the new phase, you give them more opportunities so they can have trust.
According to EY and Forbes Insight, the market requires the use of data for building trust with its customers.
Well, that focuses on the behavior of your customer and data to improve their experience.
The moment your customer feels you are not worthy of the trust, they choose some other companies. There is nothing worse than bad experiences and it spreads like fire in the forest.
Leverage Your Feedbacks From Customer Surveys
Surveys are important and one of the most powerful tools that can help you in building customer engagement.
Surveys do look boring but if you do it smartly, it will be effective.
Well according to Fluid Survey University, The email surveys have an average response rate of 24.8%. And there are a lot more benefits that are associated with surveys.
Image source: hubspotblog
Hearing directly from your customers and understanding their problems can help you in better engaging custom content that improves customer retention.
When you give the opportunity, the customer gives their honest feelings regarding what they feel about the brand.
However, they might have a lot of sensitivity which can help to get pain points. You can find the areas where your customers are not satisfied. Adjust with those parts and understand that.
Develop Calendar For Frequent Communication
With the help of a communication calendar, you can keep everything in touch and also maintain the intervals.
You can keep your editorial calendar to track your strategy regarding the content, creating, publishing, and doing promotions.
You can program sequences of events, handwritten notes, phone calls, notes, etc. Also, you can use it for automation software.
It is more essential for doing pre-sales, sales as well as post-sales.
When you have proper communication, you can do better engagement and have improved the retention of your customer.
Use Education Emails For Training The Customers
An email newsletter is one of the highly recommended customer retention strategies that deliver the works.
When you have the right applications and newsletter you can train your customers. It works especially when you are educating about your branded content for 85%.
Image source: vero
Well according to Nielsen Norman Group, the newsletter is helpful when you are looking to grow and maintain a relationship. It works even when the customers are not doing the purchase.
Getting email subscribers is important. And keep sending the newsletter for educating the buyers and keeping the communication with them.
Also, it delivers the personal experience and the customers feel the art of the business. This motivates them to purchase more and also stay loyal.
Measure Your Customer Value For LifeTime
For any business, customers are their biggest asset. Customer lifetime value or CLV is an important aspect when it comes to key performance indicators.
Well, to get the customer, takes lots of effort and resources. Being an owner, you should understand the value of each customer that is bringing, it’s also known as customer equity.
Some of the customers might bring more value to your store, such customers are called VIP.
Some other customers also do the word of mouth for your business. The value that you get from your customer’s help can also increase as well as predict the revenue.
Learn From The Complaints Of Your Customers
Every business has some customers who have complaints, and even though you want to run away still they are important for the work you do.
The group of such customers is a great asset for marketing and understanding more about the products or services.
With their complaints, you can get where your product and services are lacking. Also where you need to improve and to ignore, such a group of customers can help you in getting better insight.
Also, they complain about things that they care about and the expectations they have regarding your services.
There might be lots of customers who are not happy but they are leaving without saying anything.
Here you are not just losing customers but also the chance of knowing the root problems.
If you resolve the complaints, the chance of getting your 70% customers back to do the business again.
When your customers complain, it means they are still interested and you can use it for turning them in your favor.
Use Live Webinars For Inspiring The Customers
Well, the use of webinars increases, especially in today’s marketplace.
You can use the live webinars for growing your communication with customers and keeping your strong presence in the digital marketing space.
With the help of webinars, you are not just holding the attention of your existing customers but also generating powerful leads for your business.
It’s one of the strong and effective customer retention strategies that can make your dying online business revive one more time.
Image source: pinterest
According to research, 20 to 40% of webinar attendees turned as qualified leads for the business.
With the help of webinars, you can achieve your goals related to the organization.
Keep Adding The Content To Funnel
For business, the funnel is also an integral part of a content marketing strategy.
Before the conversion happens, the funnel plays an important role.
These funnels to guide the customers and engage so they can purchase the product. When they enter the store, they need to get engaged with the content first.
Thus, It’s important to keep your content fresh and relevant. You can’t sell something to someone who is a stranger.
Keep Your Communication Personalized
Offering customer services, it’s important to keep it warm and welcoming. Here you can’t afford the lukewarm treatment.
Either you are helping your customers completely or your business will suffer.
Image source: shopify
Personalization of your communication gives a closer relationship with your customers. It’s also a way of trouncing the competitions.
It also doesn’t matter how important the tool your competitors are using, if you are pro at personalizing, every medium will serve the purpose.
Be Unbiased Reviews And Testimonials Of Customers
What you have as a resource, you use it.
Customer reviews, ratings, and testimonials are the resources that businesses should use.
People trust more when someone is not related to business-speak. That’s why lots of people check reviews before they purchase something.
Image source: testimonialhero
When you are making a customer retention strategy, do not ignore the importance of reviews and testimonials.
According to brandify, 88% of customers get influenced by negative reviews.
Generally, people are curious before they purchase, giving them the answers can help you in improving the business and earning more profits.
Keep your testimonials unbiased and real. When people read such testimonials, they get quickie on terms for using the product.
Also, you don’t have to keep the testimonial that is completely positive. It can be a little bit negative but genuine so customers can relate.
Build Your Brand On Social Media
More than 90% of businesses in the US are on social media to promote as well as market the product and services.
Billions of people are spending their time on social media platforms like Instagram, Facebook, and Twitter.
Image source: sproutsocial
When you have a presence on social media that gives more access to potential customers.
Start using the hashtags, direct comments, monitoring and mentions to keep your customers interested and engaged.
For example, you can take Nike for consideration as they are using Twitter for addressing the customers and their problems.
Image source: firstmonday
More Options In Return And Delivery
People look for the fastest way that can help in solving the problem. The reason people choose online over retail is they get more fast delivery.
It means people look for more options that can solve but save time. For example, you can take Amazon and its mastery in improving customer retention.
Image source: taw’sblog
The company offers different options such as:
- Same day delivery
- One day delivery
- One or two-hour delivery
- Prime pantry
- Locker delivery
Be More Active In The Community
Customers are becoming more active on social concise,
This means businesses should do the same. There are lots of organizations that do charity work. Also, it improves customer loyalty and you get more attention from them.
You can get a partner with such a cause and encourage your customers to take part. People feel good when the brand they are associated with is doing good deeds for the society and community.
Image source: nikenews
Also, you don’t have to go to this if you don’t want to, you can stay active by attending the local community and improving them.
You can start your blog by talking and sharing about what you know, so the next person can learn. These days podcasts are also in trend and a useful tool to try it out.
Run Email Campaigns More Centeric To Customers
Email marketing has an important and one of the biggest impacts on current customers.
If your emails are personalized and centric to them, the customer will likely open to read more than other cases.
For example, if you are mentioning their names, it adds a personalized touch and more chances to get the read.
Image source: emaildesignblog
You can send emails thanking and appreciating their efforts or purchase.
To keep your email champion successful, you can focus on points like :
- Send your email on working hours or 9 am to 5 pm. People tend to check their emails often during such time
- Do the questionnaire and surveys to understand how your customer is feeling. You can get personalized information too
- Encourage your customers to respond and reply to email. You can add CTA to make it easier.
- Keep your email mobile-friendly and easy to read as well as to understand
- Keep your customer purchase history in mind and do emails according to that.
- Celebrate special events, occasions, and days.
Frequently Asked Questions ( FAQs)
The basic and effective steps can be offering product expertise and offering to keep your customer reneged, Also you can offer programs to increase their loyalty towards the brand. To avoid getting to this stage, you can start improving your communication with them.
You can improve your delivery and deliver the promise you have made. Also with this, improve your customer services, and offer the value for the product. Keep your approach personalized and be there when your customers require your help.
Customer retention is considered as the ability of the company to keep its buyers to purchase and repeat that. It means more sales without investing too much. Also it keeps the customer satisfied too.
Existing customers tend to spend more as compared to the new ones. It helps your brand to get more profit and recommendation. Customer retention can help you in increasing your overlap company revenue by 25 to 95%.