Customer retention is vital to your business’s success. Getting customers to come back time and time again builds loyalty and keeps sales costs to a minimum. Effective customer retention strategies will encourage customers to return to your business and increase the profitability of your existing consumers. It’s all about making sure that the customers you have worked hard to get will stay with your business for the long run.
While there are many customer retention strategies out there, these five you simply cannot ignore.
Focus On Customer Reviews
Collecting and analysing consumer opinions is essential for improving customer retention. It isn’t enough to just encourage reviews post-purchase; you need to take action on them as well. This is particularly true with negative reviews or those that highlight concerns or issues with your products or services. Responding to these reviews and quickly sorting any problems that existing customers have had will help to aid retention and avoid customer churn. When you demonstrate to previous customers that you care about their opinions and take them into consideration, they will be more likely to do business with you in future.
Manage Customer Expectations
In order to keep consumers satisfied, you need to be able to meet their expectations. One of the most effective ways of doing this is to set the expectations they can have for your business realistically. Never over-promise on things you aren’t able to deliver, and always be honest with your customers.
When you set customer expectations too high, you will be setting yourself up to fail. Roy Hollister Williams, an experienced Marketing Consultant, says ‘the first step in exceeding your customers’ expectations is to know those expectations’. This means if you are promising to deliver a service within one hour, then do precisely that. Or even better, deliver it in 45 minutes. Consumers that have their expectations met by a business will be more inclined to return time and time again.
Setting up a communication calendar is a great way to make sure you are keeping in touch with past consumers. This could be through email, phone calls, direct mail or any other communication method. By communicating with existing customers on a regular basis, you can build a loyal relationship and improve customer engagement. Your customers will be left feeling important and valued, as well as staying informed about your products, services and latest news.
Create A Loyalty Programme
Loyalty programmes are everywhere these days, and that’s because they’re so powerful when it comes to customer retention. There are various models for loyalty programmes, and whether you chose to offer exclusive discounts or reward points to members, you’re sure to see an increase in repeat business. Recent studies showed that a massive 75% of consumers are likely to make a repeat purchase after receiving an incentive from a loyalty programme.
Offer Discounts For Returning Customers
Offering discounts must be done carefully, and you will need to consider if your bottom line can handle the hit before going ahead with this form of customer retention strategy. If you’re in a position to offer a small discount, then offering it to repeat customers is an excellent way of encouraging them to return. One option is to send a discount code along with first time orders to incentivise new customers to come back again. It can also be effective to offer a discount to customers that haven’t purchased from you in a while.
Your existing customers are the most valuable asset that your business has. By implementing these customer retention strategies, you can nurture these customers to become loyal, repeat consumers. Through a combination of loyalty programmes, managing consumer opinions and regular communication, you can encourage your customers to come back to you time and time again.