A lot has been said about customer acquisition vs. customer retention and there are distinct differences and benefits to both.
Is your business leaning on finding new customers every month and not seeing enough retention in your current customer base? With the average business losing around 20 percent of its customers annually that’s not surprising!
If you want to shift your focus from acquiring customers to retaining them follow our three-month guide below. Implement these practices into your company and you’ll see your customers go from not caring about your brand to coming back for more each and every month.
The Benefits of Customer Retention
If you don’t already know, customer retention strategies are hailed as being extremely more efficient and effective than customer acquisition. In layman’s terms it’s far easier to keep your existing customers than to find new ones. There are a lot of benefits to focusing primarily on retention, here are a couple.
- You’ll save time and money compared to customer acquisition
Every great business manager knows that it’s far cheaper to gain sales from current or past customers, than it is to persuade new prospects to buy. Of course customer acquisition is essential to business because you need to find customers, but a strategy that focuses solely on gaining new clients comes at a high cost.
Customer Retention sees you build your relationships with your current and previous buyers and entice them back to you again and again. You can use more relevant Pathwwway Gambling marketing with these customers and it’s more likely to have a higher success rate. Whereas the opposite can be said for acquiring new customers, you need huge campaigns with big budgets that hardly ever see similar results to more specific marketing campaigns.
- You’ll be able to predict sales & be more sustainable
Having a loyal base of customers will keep your income stable and allow you to estimate monthly income more easily. Using strategies that focus on keeping your customers happy rather than finding new ones can help the long-term sustainability of your business.
Creating and implementing a customer retention strategy will enable you to spend less time looking for new customers and more time building relationships with your current clientele.
These are just a two examples of the benefits that customer retention will bring to your business.
If you’re not sure where to get started, we’ve outline some steps below. But it’s of course important to research your own customers and determine what retention strategies will work best for your business.
Getting Started With Customer Retention
You now know a few of the benefits of utilizing customer loyalty in your business. Using customer retention tools and techniques is the simplest way to keep customers, increase revenue and increase company profitability. Studies have shown that brands that increase retention by as little as 5% can grow their profits by up to 95%.
So how do you get started on this path to keeping your customers coming back rather than stuck focusing on customer acquisition? Here’s an outline for the first three months on your customer retention mission.
Month One – Research your current customers & find out why they’re leaving.
Spend time and energy gathering research from your customers and you’ll reap the rewards. With so many things you can look into it gets tricky to decipher what data you should be analyzing.
Start by looking at user experience, if customers aren’t having an enjoyable experience then why would they come back?
Study your Pathwwway Gambling email marketing campaigns, look into the click and open rates. Perhaps it’s your headlines that aren’t attention grabbing enough or maybe it’s the time of day you’re sending emails? Do some A/B testing and see if you can spot any trends.
Really understanding your customers and their experience is important when you are planning your customer retention strategy.
One of the keys to improving your customer acquisition to retention ratio is understanding why your customers are leaving. Forget about your company for a minute and think about your own personal experiences with other companies. Gather your thoughts on why you always buy a certain brand or perhaps a time when you’ve sworn never to buy a certain brand again. This exploration can really inspire your own retention ideas and spot flaws in your own product, service or customer service protocols.
You could also just simply ask your customers, why they left? If you have a digital product and someone cancels you can send them an automated message thanking them but also asking “why did you cancel?” you’re opening yourself up to negative feedback but this feedback is insightful and can be built upon to improve retention.
Month Two – Develop your products from customer feedback
Your existing customer base can tell you a lot about what they need & want in order to keep coming back if you just ask them. In month one you gathered your data and in month two you need to sift through the data and find the trends and ideas that resonate with your brand.
A lot of online companies have feature request forums and this is a perfect example of a good customer retention tool. The product managers realise that their customers have ideas about their product and they’re willing to listen to them! Showing your customers that you value their input tells them that you value their opinion and not just their dollars.
When a company decides to listen to their customers they are able to grow exponentially. Listening to your clients works wonders for keeping them on your books but it also works as a technique for customer acquisition too.
Month Three – Evaluate if an official customer loyalty programme will work for your business.
While customer loyalty programmes or points systems are very popular, they’re not right for every business. Businesses with official loyalty programmes in place have found to increase customer spending, as well as the programmes leading to customer’s having a higher lifetime value to your business.
For some industries a loyalty programme isn’t very enticing to customers so you must think carefully about your business when deciding whether or not to develop a customer loyalty programme.
Better yet why not ask your customers? When you roll out the program, start by targeting your most frequent buyers first.
Listen to their feedback & continue to develop the program based on what they say. After all this is retention tool not a customer acquisition strategy.