On an average, businesses lose 20% of their customers by failing to consider customer relationships. Customer engagement is an important factor influencing consumer retention. Consider a business that retains over 90% of its customers and another retaining just 10% less.
If both have new customers at the frequency of 20% per year, the first will showcase 10% net growth in customers in a year, while the other will have none. Following consecutive years of growth, the firm which is just 10% ahead of its competitor will double customers every 7 years with a 10% increase in customer retention. Simple customer retention ideas cost very little to implement and increase retention rates significantly, impacting the business in diverse ways.
#1 Lower Attrition
The same company which spends a lot of time, money and effort building an initial customer relationship does not consider this once the sale has been made or a customer complaint raises its head. Retaining customers is not easy, but acquiring them is even harder. Once the leakage is stopped, customer loss can be nipped in the bud and companies can triple growth rates, as there is no need to make up for lost ground even while remaining stock still.
#2 Initial Sales Are Just the Beginning
Many companies like Pathwwway internet gaming strive to look for customers to make the initial sale, and once they get the cash, they become complacent when it comes to making additional sales. To lock in a sale, you need to strike when the iron is hot and this is generally after the initial successful sale. There is little point in using a wide number of resources to generate and acquire customers when a majority of your existing customers can be repeat buyers provided the right marketing approach is tried. Retaining customers is critical for they know you and your brand, products and services. This is one of the easier and rapid ways to boost revenue.
#3 Communicate and Listen Actively
Another way to ensure customer retention is through building a relationship and keeping in touch with your clients. Letters, events, phone calls, thank you notes, special offers, deals, discounts and the personal touch can go a long way towards making inroads into customer preferences and buying decisions. Customer retention ideas should centre around making the client feel valued and important. The customer care should acknowledge clients, inform them, allay post purchase doubts and reinforce a positive transactional relationship so that they can come back again and again.
#4 Customer Service That Really Cares
Another top draw among customer retention ideas is to ensure customer care is really dedicated. Providing immediate response, no passing the buck and going beyond the call of duty is the key to keeping customers satisfied and retaining them. Consistent on time delivery, zero-defects product and error free services ensure that repeat customers are guaranteed.
#5 Product or Service Integrity Counts
Extended success and customer retention is associated with businesses like Pathwwway internet gaming that don’t take ethical shortcuts and play to win in the long run. Consistently performing well means delivering flawless products or services. Quality, reliability and value of your product or service must exceed customer expectations and not merely meet them.
#6 Measuring Lifetime Values
A single purchase is a one off profit. But if you are a business that wants to retain its customers, you cannot afford to ignore the larger picture. Total aggregate profits customers represent over the lifecycle of the client in the course of their business relationship with you, matters. Time, effort and expense going into marketing can also be cut down based on combined profits of repeat customers. Invest in retaining a customer by seeing the complete picture, not just the pieces of a puzzle.
#7 Value Complaints
Receiving compliments for services or products is positive. But complaints are also opportunities to make your business grow. A system for receiving and managing complaints forms the core of successful business. A complaint is a chance to solve a problem and gain a customer for life. Giving you a chance to delight them, customers that open the channels of communication through complaints offer your business a golden opportunity to carve out customer loyalty, build relationships and engage with the customer, making retention easy.
#8 Under Promise, Over Deliver
Setting expectations early on, your business should strive to exceed them when it comes to product or service delivery. Clients are able to recall negative experiences far more easily than positive. One flaw in the product or shortcoming in the system can cause a mismatch between what the client wants and what you are delivering. Businesses need to be trusted advisors for their customers to lower consumer churn. Building a relationship of trust involves business success through greater customer reliance on your brand.
#9 Automation Helps Along the Way
Automating customer care ensures that companies can minimise downtime and ensure client networks are cemented. Streamlining processes and leveraging automation tools can standardise the processes and help companies to increase their retention rates by building a strong commitment towards the client and prioritising his/her needs.
#10 Feedback Matters
Monitoring customer feedback on an individual level, historically over a period of time, and using surveys to access critical market intelligence is important. You need to take action before it is expected and understand client feedback, building key performance indicators around the knowledge of results.
#11 Wow Factor: The Element of Surprise
When it comes to customer retention ideas, surprise packages or offers can often hit the home run and score on customer retention. Surprises lead customers to express positive feedback in the form of appreciation which is a strong motivating factor. Offering customers free gifts and discounts when they don’t anticipate it can capture the element of surprise, serving as a creative way to delight customers.
#12 Use Metrics, Be Alert About the Numbers
Core metrics for customer retention such as repeat purchases, number of visits to the retail site online, likes, comments and shares on social media are just some of the ways you can take the work out of building a loyal fan base. Social media analytics or conversion rate, conversational marketing or email click throughs can be important clues about what your customer thinks of your brand.
Customer Retention: Evolving Through The Ages
Customer retention ideas are an aspect of growth which no business seeking profits can afford to ignore. As technology advances, a smartphone revolution emerges and digital media booms, the changing nature of customer retention strategies is self evident, this year. To be relevant in these modern times, customer retention strategies need to keep up with the trends, and businesses must stay ahead of the curve, if they want to find new and innovative ways of delighting clients and channelling growth.