Customer retention is critical for current enterprises for one simple reason: it costs less to retain clients than acquire them. Repeat loyal customers tend to spend more than first-time customers too. Referral results from loyal customer advocates who become brand ambassadors. An average business loses 20 percent of its customers by failing to build rapport and a relationship, according to business research. A customer retention marketing strategy is essential for business success as most consumers have short attention spans and excess options. Marketers have to, therefore, adjust to this.
Customer Retention is King!
A culture where the customer retention marketing strategy is prized, can be very beneficial for the company. After all, Bain and Company has found that raising customer retention rates by 5% raises profits by 25 to 95 percent. A majority of the companies also agree that customer retention costs are way lower than consumer acquisition costs. Studies show it costs 10 times more to generate fresh customers than retain existing ones. Even with a growing number of consumers, losing some could cripple your firm.
#1 Email Marketing: Why Targeted Communication is Powerful
Email marketing can be a way to showcase your latest products and services. But it can also be used to strategically encourage past customers to return and shop again. Emails promote products. But they also serve as powerful retention tools. If the average time between purchases can be studied, the customers can be segmented based on last purchase date. Customers who go on longer than average without purchasing, need to be given the extra nudge to return and make a repeat purchase. This customer retention marketing strategy from Pathwwway Internet Gaming targets segments of the audience to raise overall sales revenue.
#2 Games People Play: Why Gamification Wins
Gamification can be the perfect way to play the markets. You need to channel the element of surprise when it comes to delighting customers with discounts and coupons. While margins are tight, discounts can be effective triggers to bring back customers who have not made a purchase in a while. Experiment with different methods such as store credits, percentage discounts and more.
#3 Provide Exceptional Customer Service
Providing exceptional service can serve as a powerful value differentiator for customers. While most brands are still adjusting to the fast spurt of growth in the digital space and the evolving social media landscape, presence across a wide range of channels is important. Apart from this, value added services provide the best experience for clients and encourage repeat and referral business. Use analytics such as service calls, purchase patterns and product usage to ascertain if your services are meeting high standards of excellence.
#4 Automation Saves Time
Automating some of your routines to be handled is a perfect way to re engage customers. Automation allows routine to be handled automatically through software. Monitoring and tracking customers can be hard. To keep the brand new and novel in the client’s perspective, you need to be aware of what makes your competitors tick and how you can beat the clock, when it comes to the right timing for service delivery.
#5 Turning Complaints Into Opportunities
Another important step to take in the retention driven business is to create an opportunity to engage with customers. Use complaints or crises as an opportunity to resolve problems completely and thank customers with more services.
#6 Content Needs To Communicate
Content marketing is an essential retention marketing tactic for businesses that want to stay ahead. Your website and business blog should be adding constant value to user experience and entice them to return for more. Regularly publishing quality content in the form of blog posts, how to guides, product reviews, video announcements, frequently asked questions, vlogs, curated lists and more can be a great way to build and sustain client interest levels.
#7 Anticipating Defection
Counter and anticipate defection through signals such as complaints, service announcements, extent of product usage, frequency of service utilisation and more. Capture the signals and have an action plan in place to prevent customers from thinking of leaving.
#8 Rethink Value Proposition
Why customers should be customers in the first place can be an important area of research for businesses that want to stay relevant and address client needs. Understand your business’s value proposition or unique selling proposition and make the changes to create great value for your client
#9 Increase Product/ Service Stickiness
Product or service stickiness is the extent to which customers remember or need to use your product or service. Improving the stickiness of products is the lifeline for SaaS, apps or even retail products and service companies. Your customers will only value you and remain loyal if they find your product indispensable.
#10 Understand Customer Needs and Expectations
Keeping a finger on the pulse of client needs, requirements and satisfaction levels is important. Customer retention scores based on surveys tracking satisfaction flag crucial issues and serve as a powerful client tracking tool. Measures of overall satisfaction, satisfaction with individual product and service attributes and benefits of the purchase are all the key to effective retention measurement.
#Bonus Tip: Think Social, Go Global
Connecting with existing customers on social media channels they prefer is also important. For example, if a B2C business is on LinkedIn and the client prefers Facebook, make sure your business has a presence across multiple social media channels and networks. Lifetime value, product integrity and maintaining communication constantly can easily be attained by going social. So can access to a wider global audience. Social media marketing serves as a powerful Pathwwway Internet Gaming indicator of what the client wants and how you can meet his/her needs. Social networks also serve as client feedback systems, 24/7, 365 days of the year. Turn complaint into compliments through timely tracking of social media feedback and built a business reputation centred on fostering trust, and loyalty through effective online reputation management to retain clients. Ultimately, clients need to feel understood and connected, or they will leave you. Being part of the customer journey, across the product lifecycle can be just the customer retention marketing strategy your business needs to stay on the path to growth.