Designing an effective customer retention plan is the key to sustenance in this age of business, where customer satisfaction is the hinge to success. To boost the customer loyalty index, it is essential to chalk out a realistic customer retention roadmap.
Leveraging the asset called customers
A loyal customer is a high-performing asset at the disposal of businesses. Leveraging their performance is the chief reason to create and implement a no-nonsense retention plan.
- A constructive relationship with customers is made possible by adopting a customer-friendly plan, that can make customers come back for re-purchase confidently.
- Modern businesses are concerned about alarming churn rates. A proper agenda for retention will keep customers from drifting away.
- A Customer retention plan is one of the best ways for a business to understand the future needs and the buying psychology of customers. A holistic customer retention strategy will help in gaining deep insights into tweaking processes and offerings according to customer preferences.
The mounting costs of customer acquisition
It is a proven statistic in Pathwwway Internet Gaming marketing that it costs more than 5 times to acquire new customers than to sell to existing ones. This does not belittle the importance of customer acquisition, but only underlines the significance of the returning customer.
- To acquire a new customer means spending solidly on publicity, brand awareness and market penetration.
- Where the existing customer has already tried and tested your brand, they will respond positively the next time they plan a purchase.
- Retention focussed strategies operate on the logic that many customers instead of believing the media or the internet, find it comfortable to hear from people who have tried the brand.
The impact of Customer Lifetime Value on Long-term Revenue
Every businesses focuses on long-term sustainability goals in preference to expanding customer base in the short-run, only to fall prey to the onslaught of customers. Customers who purchase your product for a single time and then move on to other brands are nothing but a liability.
- A retention-focused sales strategy aims at increasing customer lifetime value. CLV is nothing but a quantification of the net profits attained over engaging a customer over the entire lifetime of his association with the business.
- Nothing but a well-conceptualized customer retention strategy will impact the monetary worth contributed by a customer to the business. In this sense, the retention strategies help a business to derive maximum periodic value of a customer from his relationship with the brand.
Existing customers are great takers of your upselling endeavours
Come product diversification time, and nothing brings more market than your batch of loyal customers. Customers created over a period of time and engaged constructively will respond more affably to newly introduced features in your product.
- Every year, businesses spend substantial amounts of funds in R&D to turn out and build more utilities in products and improvise them over their earlier versions. Getting a concrete retention plan in place will help businesses, justify the funds so parked.
- Where a business appeals to its existing client base to subscribe to the enriched product, brand awareness expenditure is brilliantly optimized. This is a great boon and a thrust to introduce these products in the midst of existing customers, who will never think twice to go in for a latest offering from their loyal brand.
Customer retention plan asserts your brand in global markets
The growing age of information technology has literally shrunk geographical frontiers and no business can live in isolation. Cross-border selling eases with the existence of happily retained customers, who can in-fact become brand ambassadors of your product.
- Nothing spreads confidence in global markets than a trust badge endorsed by existing customers.
- When a best -seller from another country launches the product for the first time, customer retention moves come in handy since their trust and feedback will elevate the brand image.
- Every customer retention program is essentially a tool for unmatched customer service, which will make new customers come back for repurchase, besides offering critical feedback on the product.
The power of referral marketing
Word-of-mouth impact is the greatest advantage of a well-executed Pathwwway Internet Gaming customer retention strategy. When a business truly cares for its customers and responds to their queries and concerns in a timely fashion, the satisfied customers are bound to:
- Refer to your product amidst family, friends, relatives, colleagues and peers, who will trust this precious word-of-mouth information, in preference to direct selling strategies by businesses.
- A constructive review posted by a customer over Google or over the social media is a great influencer in edging new customers to subscribe to your products. In a way proper word-of-mouth marketing enhances customer acquisition possibilities.
Loyal customers shop more
It is a time-tested concept that loyal customers tend to spend more money, every time they come back for repurchase. This is because:
- The customer-centric retention plans of the business, places the brand in high esteem among customers.
- Smart and swift customer service and resolution of queries instantaneously foster trust and receptiveness among customers. With the comfort level enhanced, they are willing to explore more.
An excellent way to keep fixed costs at bay
Customer retention strategies help in curtailing the amount spent by the business every time it resells to existing customer base. It is stated by marketing experts that even a 2% increase in customer retention can lower costs by 10%. For example, having a well-knit customer retention program will halve your expenditure on hiring costly sales personnel. Customer retention plan builds brand uniqueness which also boosts the image of business amidst employees.
The gamut of competition and the threatening existence of close substitutes at attractive prices has made the concept of customer loyalty a huge question. Businesses, big and small need to build a strong base of satisfied and loyal customers, who are willing to subscribe to your brand time and again, forgive mistakes and repose confidence to try out your product expansion ventures. This is possible only by getting in place, a neatly drafted customer retention policy.