Top 5 Customer Retention Strategies to Try in 2021
As a marketer, attracting new leads is probably on top of your list (as it should be). However, lead generation is just the start of the journey, and working towards customer retention marketing is equally important. Retaining your loyal consumers can help you gain profit and stand out from the crowd. Additionally, it can also aid with the following:
1. Encouraging current clients to refer to your brand through word of mouth.
2. Saving money and budget, as acquisition costs more than retention.
3. Motivating buyers to provide valuable feedback.
4. Increasing cross-selling.
5. Growing the number of repeat customers.
Entrepreneurs should never take their customer retention rate for granted. Below, we will talk about the most effective customer retention strategy that you can apply.
Implement Consumer Education
Customer education is the process of teaching your clients how they should use your products. The more they know how to properly utilize them, the more interested they would be in the brand, thus increasing your chances of up-selling them. This would also create an opportunity for word-of-mouth marketing for your company..
Create an onboarding project which educates your consumer. You can do this in the form of videos, articles, and FAQs. Make these short tutorials straight to the point, clear, and concise so your customers wouldn’t get bored in the process. You should also see to it that your clients can quickly contact your support team if they ever need help with the products.
Be Honest with Expectations
Being honest and transparent with your customers is the gateway to success. Never make promises you can’t keep, as this can lead to distrust, and ultimately, the people turn away from your brand. It’s better to let the crowd know about possible issues they can encounter rather than disappointing them with claims that you cannot back up.
For example, you assured your customer that the item/s that they bought would be delivered to them in two to three days. However, shipping delays can occur, which can make the process longer. It is vital that you inform your client so they’d know what to expect. Be detailed with what can happen along the way – courier mishandling, delays due to inclement weather, air and sea traffic, and so on.
Here are a few more ways to set expectations with your customers to improve your metrics with successful customer retention strategy :
1. Keep your communication lines open.
2. Monitor your products and services and make sure they are of high quality.
3. Follow up and ask about your clients’ experiences.
4. Make it a point to exceed their expectations.
Nourish Customer-Business Relationships
Building a relationship with your consumers will help improve trust and loyalty, which results in better customer retention rates. You can do this by constantly creating a conversation with the clients and always being available when they need advice regarding the items they bought. Implement integrated marketing channels and consider using a CRM to keep everything organized.
However, you should never spam your clients with messages and emails. Avoid being intrusive and instead, only reach out to them when needed. Use personalization to make the messages a lot more targeted to the audience. Utilize analytics to know your demographics and segment them to send emails that you know will be appreciated.
Carry Out an Incentive Program
Rewarding customers for their loyalty is a great way to retain them. Compensation doesn’t have to be grand, too, as you can simply give your buyers discount codes and special offers. Doing so will not only help keep shoppers from buying from you again, but you will also increase your sales in the process.
Here are a couple of loyalty programs that you can implement in your customer retention strategy:
1. Point-based. You can give buyers points whenever they purchase from your brand. These numbers will accumulate every time they buy something from you, which they can use for their next shopping spree.
2. Mission-driven programs. Mission-driven programs can help improve your customer retention metrics to show your clients that you share the same values. Not only this, but you will also have the chance to help non-profit organizations while keeping your patrons loyal.
3. Gamification. Implementing games adds a fun twist to the incentive program. You can add a leaderboard that shows who among your customers has the most purchase. Moreover, online games can also be implemented, especially if you own eCommerce business.
3. Gifts. People love receiving free things. You can reward your loyal shoppers with gifts once they reach a certain amount. These gifts should be valuable to your customers so they will be motivated to reach the goal.
5. Cashbacks. Cashbacks are similar to discount codes – the only difference is that the reward comes in the form of actual money. Make sure that the cashback can only be used within your brand to encourage customer retention.
Analyze your Churn Rates
Churn rates are defined as the number of people who turn their backs on businesses. Take a look at your data and track your metrics to find out the reason behind this. Here are some ways to lessen your churn rates and improve customer retention metrics:
1. Engage with your clients regularly. Ask for their feedback and suggestions.
2. Keep on educating your patrons regarding products and services.
3. Identify the people who are most likely to steer away from the brand.
4. Focus on your most valuable consumers.
5. Offer incentives.
6. Target or retarget your audience.
7. Amp up your products and services.
8. Listen to complaints and act on them right away.
9. Highlight the advantages.
10. Train your customer support team on dealing with complaints.
Encouraging people to stay with the business doesn’t have to be complicated. As long as you know how to please your clients, you can rest assured that they will remain with your company for a long time. Keeping your buyers happy is the key to having loyal followers, so make sure to apply all of the tips discussed above to your customer retention strategy to keep them engaged. Be proactive, listen to what your patrons have to say, act fast, communicate, and you are indeed on your way to higher customer retention metrics.