There might be many brands around you, with which you develop a sense of brand loyalty. And you become loyal customers of those particular brands. But, why do you like some of the specific brands when you have a plethora of brands available in the market? What are the reasons which compel you to stay with those specific brands?
Here comes the concept of Customer Retention.
Customer retention refers to the activities organizations use to “increase the number of repeat customers” and “reduce the number of customer defections”. It is the ability to win customer loyalty and make them your regular customers for a longer period of time, by focusing on quality products and better customer service.
Customer retention involves strategies designed to ensure that your existing customers do not opt for any other substitute and stay with you and take your services for a longer period of time. A customer retention strategy is an important step to build a strong customer relationship.
Most companies focus more on the acquisition of new customers than on customer retention. In fact, around 44% of companies have more focus on customer acquisition, around 18% focus more on customer retention, and around 40% focus equally on both. However, customer retention is actually much cheaper for companies than customer acquisition.
Customer retention can elevate your revenue to a great extent when your customers promise to longer stay with your brand. A mere 5% increase in customer retention can boost your revenue by 25–95 %. Customers that have already used your brand and are loving the quality and values they are getting, are more likely to come back to you. Repeat customers make up a considerable part of your brand’s revenue, and the more they buy, the more chances are there for them to buy again. With every purchase, their chances to buy from you increase.
One of the studies has shown that the customer’s fifth purchase from the same brand increases their spending by 40%, compared to their first purchase. By the time the customer reach the tenth purchase, they were spending a massive 80% more. And this is huge.
Good customer service is important in every industry. It forms a strong base for the success of your business. Great customer service helps in engaging customers and making them stay with your product or service for a longer duration. Even when your product is not so amazing but you have the capability to serve your users efficiently, there are more chances that your customers will stay with you. Customers form a positive attitude when they are served by apologetic staff that makes them realize that they are doing their best to satisfy their needs.
Listening patiently is an underrated art. In fact, inculcating a listening culture is a great retention strategy for your users. Customers feel connected when they are heard patiently and your empathetic attitude creates a great impact on them. Companies already have the data and information of their customers. One should use that information judiciously before contacting each individual.
Give them a better-personalized experience so that they feel like a part of your company and associate your company with a smooth and easy experience. Each customer is different and requires a different approach.
It is very important to clearly define what they can expect from you, in case they need your assistance. It is advisable to define expectations lower and respond to customers with quicker replies. For example, you have promised your customer to pick up the product which needs to be returned, within 2 days, then try to keep your promise and it would be even nicer if you do it before 2 days. Quick response will delight your customer and will build their trust in you. Always try to meet deadlines on time.
Apart from selling your product or service to your customers, it is important to educate them about your product. You should create easy-to-understand and authentic content to educate them well. This information can make them more comfortable with the product and gives better insights about your product and service.
You can make use of Case Studies, How-to Guides, Social Media posts, and Customer Testimonials for better content creation.
Customer Feedback is a great source to know the pros and cons of your product or service. It is important to collect feedback and use them to trace your performance.
Both negative and positive feedback should be used to improve your performance. Customers should be regularly asked to provide feedback about your product usage and their overall experience with your product.
This will not only help businesses to track their performance but also make customers feel that their opinions and feedback matter to you.
Quick response time is one of the key factors for a good customer experience. One of the studies has shown that approx. 59 percent of consumers are more likely to buy when brands answer the phone in under a minute; 73 percent more likely to recommend highly responsive brands to other users. You should always prioritize customer communication for better customer relationships. One should be quickest in addressing customers’ problems and resolve them as soon as possible. This builds the trust of your customers and increases their chances to be loyal to your product, in near future.
Loyalty programs are great for attracting your customers. Something extra is always appreciated. Try to delight your customers with special offers and rewards on a regular occasion, try making them feel good about purchasing, and give them reasons to come back to you. Delight them with surprises, discounts, and credit returns. This really works excellently.
We are living in the world of the Internet almost everything is available on the Internet now. This has made the user experience more smooth and easy. Try to make your online processes easy to use and user-friendly. So that user does not find any difficulty in going through it. Try incorporating more language options, so that language does not become a hurdle while dealing with you. Always keep your website and mobile applications up to date.
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It's crucial to assess your customer retention strategies regularly, in order to adapt and address the varying requirements and expectations of your clientele. Staying mindful of their needs and desires is critical for forming robust bonds and fostering a loyal customer base that will sustain your company. So what are you waiting for? Go ahead now and start that relationship-building!
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