Customer retention is all about lasting relationships. Do you have that childhood friend you never want to let go of? If yes, that’s exactly what brands look for in their customers in the long run. But, why does it matter so much? How can getting the right tips and implementing the perfect strategy change the game? Well, let’s back it up with some proof.
- The average global value of a lost customer is $243!
- It is 16 times as costly to build a long-term relationship with a new customer than it is to increase the loyalty of an existing one.
- As businesses grow, they find it increasingly difficult to cut down customer churn rate. Companies are always striving to keep existing customers from leaving because it affects their brand reputation as well as their bottom-line.
- Loyal customers spend more per order than customers who aren’t loyal.
- The average order value and the number of transactions are higher when you have loyal customers who are happy with the service and experience you provide.
Let’s go into more detail on this.
Why do You Need Customer Retention Tips?
Now that we have a basic understanding of what customer retention is, we’ll tell you why we need these tips. Here are a few reasons we found out-
1. Increased profitability
- Loyalty is not only cheaper, but it also gives you better returns. Loyal customers are more open to price changes, but they will never compromise on the quality of service.
- This is why you need to invest in customer experience! The customer retention tips in this article will help you further with that.
2. More word-of-mouth referrals
- Loyal customers tend to spread the word about your business more than your other customers do.
- And regardless of how much money you invest in Facebook ads, there is nothing like a friend or a colleague suggesting why your product is good for your potential customer.
3. Honest feedback
- Loyal customers don’t hesitate to let you know their thoughts. So collect customer feedback diligently. This also means that they will tell you how they want to be treated and how to get their business.
- People who see that their complaints have had an effect on the company’s policies are more likely to buy from you again.
4. Easy to cross-sell and up-sell more
- A new customer might be a difficult prospect to up-sell and cross-sell. But that’s not the case with a customer who has been one for a pretty long time.
- Since they have already experienced your product and are satisfied with it, they will be more willing to buy from you when you launch a new product.
Now you know why you need a customer retention strategy. Let us help you out with these 10 customer retention tips.
The Best 10 Customer Retention Tips to Reduce Churn
Here are a list of 10 customer retention strategies that might be of help:
Tip #1: Listen Attentively
You clearly don’t want your customers to leave, right?
But how do we crack that code and have them come for more? The solution is simple.
Listen! Just by listening to what they have to say, you give them the upper-hand.
Also, be open to praise but make sure that you are ready to listen and act on negative feedback as well. This is why a lot of companies invest in online survey tools. These tools help consumers engage with the business and provide candid feedback.
There are a lot of channels through which your customer can address their concerns: emails, social media messages, call center and so on. It is pivotal that you listen to your customers with an open mind as customer feedback survey results can add a lot of value to your business and increase customer happiness.
Tip #2: Be Strong on CS
The ‘CS’ here stands for customer service. Customers won’t think twice before leaving you for a competitor if your services don’t meet their expectations. This is because loyalty changes when expectations aren’t met and it needs to be earned every single day of your operations.
Taking quick action when a customer is confronted with a problem and communicating with them on their preferred platform is important. Another customer retention tip on similar lines is being quick to respond to any customer queries. It goes a long way in cementing trust.
Tip #3: Maintain Integrity
Celebrities have lost million-dollar deals because the brands they associate with don’t want to partner with someone who has a stained record. Even if it is due to something as simple as an accidental tweet, it will affect the way the brand is perceived by the audience.
Come to think of it, as it happens, friends leave when they get to know that you are accused of dubious activities. Why would a customer do any less? So, never take shortcuts when it comes to integrity.
Tip #4: Communications Calendar
There’s nothing called “too much communication” when it comes to brands and consumers!
You can focus on building relationships. How? By being in constant touch with your customers through different mediums.
Create a content calendar where you can communicate with all levels of customers. This can be through a sequence of emails, events, calls, webinars, special offers, follow-ups, cards, personal notes, social media updates and so on.
Plus, do not hesitate to respond to them if the customer responds privately. It will increase the bond that a customer has with your brand which helps immensely when you do outreach campaigns.
Tip #5: Delight Your Customers
Yes, we know, it is easier said than done. But you’re almost there.
You need to remember that the smallest of actions can have a great impact on the customers. Don’t just think of this as an opportunity to drum up more sales. Think of it as a way to delight the customers, nothing more.
Ask them to be a part of your beta list of product testers. Give them a coupon for your new product. Send them tickets to a game or a comedy show. Celebrate their anniversary. Give them exclusive updates. There is so much more you can do depending on the kind of business that you do.
Tip #6: Reduce Pain Points
Well, this is one tip you must not miss if customer retention is your major target.
The reason why a customer decided to stay might be because they were looking for professional help in an area where they lacked expertise and had to deal with certain pain points.
As a brand, this is your chance to do an impeccable job at solving those customer pain points. If you understand how their business and industry works, you can create solutions that makes their journey easier.
Once you do this, you are gold! What’s better than finding a clear cut solution for all their problems, right?
Tip #7: Create a Community Around Your Brand
People love to be a part of a community. They want to talk to those who do the same things they do. So give them an opportunity to talk to other customers of your products inside your brand community. If you can create a community where people discuss your brand, there is nothing better.
Putting out content consistently can add a lot of value to your brand. A Facebook group is a great place to start an engaging community.
Give your customers an incentive to be a part of the community – like a free e-book or a quick consultation call. Use the community to get instant feedback from your customers.
You can send them free samples whenever you launch a new product and use it to get testimonials or encourage purchase.
Tip #8: Incentivize Social Shares
Social media has made word-of-mouth marketing easier to achieve. A little reward will do great benefits. Conduct online photography contests, and award the picture that promotes your product the best. This not only enhances customer engagement but also improves brand visibility.
Contests like these reduce your marketing budget significantly because your customers are the ones doing all the work to get the rewards.
User Generated Content (UGC) is one of the biggest drivers of engagement where you use content created by the customer on your social media handles. This increases customer engagement and also helps with achieving a significant amount of reach to newer customers.
Tip #9: Add More Content
A content funnel is an important customer retention tip because you are slowly attracting potential customers by providing high-value content.
A funnel usually has a cycle which goes like this: Awareness-Consideration-Conversion-Loyalty-Advocacy.
As soon as people visit your website, nurture them with relevant content.
To create awareness, these are the things that you can use:
- Whitepapers, e-books, checklists, how-to articles and videos, webinars and so on. Allow the customer to evaluate your offering through demo videos, product webinars, FAQs, discovery calls and case studies.
The last stage is where you help them make the purchase decision by offering:
- Free trials, live demo, consultations, discount coupons and so on.
By the time a potential customer is ready to pay, they are convinced of your expertise in the field.
Tip #10: Personalize, Personalize, and Personalize
Personalization starts with communication.
Imagine if, Roger from the marketing team, got two simultaneous emails. One addressed him as just ‘mister’ and the other with his name. Which one do you think he will respond to with pleasure? Obviously the latter! Personalization goes a long way in winning customers. It is a sign of a good brand that concentrates on customer service.
Spend time and invest in the right tools to make sure that you personalize each customer touch-point.
The value that personalization brings in is pretty high, and companies around the world are spending thousands of dollars to say –“Hi Roger!”
You can do personalization at so many points – including emails, communications, content, live chat, customer service emails, phone calls, FAQ pages and so on.
Today everything is entirely data-driven. Companies which use technology to understand the psyche of their customers will thrive. The rest will find it difficult to hold on, and will eventually give way to newer companies that have customer service at their heart.
In short, creating a foolproof method for a customer retention plan is all about making a checklist of activities that you need to do consistently. The thing that will work across different industries and clients is nurturing relationships. The 10 customer retention tips that we have explained in detail here are not the only methods that you can use to keep the churn low.
What do you think will help? Feedback from creators, like that of SurveySparrow‘s can make it happen. Create, share, collate, and analyze data with advanced tools.
Perhaps it is what you’ve been waiting for all this time!
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