Managing your customers and keeping them returning to your business takes adequate time and work. Instead, maintaining your customer base involves incorporating many strategies to provide the best customer experience. Customers usually come and go and often disappear without telling you why they’re not returning. Protect your investment in earning their business the first time by taking the best care of them once they are in the fold. You must do many incredible things to ensure satisfied customers return to your business.
The practice of getting new customers and making to stay old customers is known as consumer retention marketing. Consumer retention marketing is simply a marketing formula to keep your current clients and customers coming back for more, time and time again.
How does a company improve customer retention rates and turn first-timers into regular customers? Given below top 5 strategies to keep customers coming back.
So let’s get started.
What is Customer Retention?
Customer retention is the measure by which customers stay with a particular business for a duration. Customer retention is often referred to as attrition rate. It is the critical metric for practically all B2B and B2C businesses.
Customer retention metrics are based on the first purchase made by a customer. Once customer retention is measured after the payment is made, organizations can use this feedback to execute data analysis on components of customer experience and customer satisfaction.
A 100% retention rate is always reasonable. Meanwhile, a 15% retention rate usually needs to be corrected. Whatever is in between varies by industry.
Importance Of Customer Retention
That organization potentially gains on repeat customers by focusing on customer retention rather than expanding its customer base. However, achieving and acquiring new customers is vital but much more expensive.
Based on the latest report by Thinkimpact, Customer Retention has a significant impact on ROI – a 5% increase in CR results in a 25 – 29% increase in revenue.
Maintaining and converting customers into recurring customers is as important as gaining new ones.
The first step is to recognize the lifecycle of an organization that wants to record. This may start from a month to a fiscal year or beyond.
Other factors used to determine the customer retention rate include the following:
- The number of purchasers in the customer base at the start (S)
- The number of purchasers at the end (E); and
- The number of new purchasers acquired over time (N).
These metrics are recorded.
The formula is as follows:
Customer Retention rate= E-N/S x 100
The best Customer retention strategy is a company’s ability to keep customers returning for repeat purchases over a while.
Top 5 Strategies to Keep Customers Coming Back
1. Give Customers A Positive Experience
Excellent customer service is one primary key to customer retention. Make sure of your customers’ overall experience. Various elements, but among the most important ones, are:
- Great service
- A great website or store design
- Quick and straightforward purchasing
- Follow-up support.
Excellent customer service involves responding to your customers promptly with a pleasant and positive attitude. Therefore, it’s pertinent that your representatives are trained to value your customers’ time, respect their opinions, and provide the best possible support.
Take a real-life example of Zappos, an American online shoe and clothing retailing company. Zappos has exceptional customer service through its online customer service tool. Zappos is renowned for its commitment to providing outstanding customer experiences and has leveraged online customer service tools to achieve this.
Zappos has seamlessly integrated a live chat functionality into its website, facilitating prompt and direct interaction between customers and their dedicated team of customer service representatives.
Zappos’ success in delivering exceptional customer service through their online tools has garnered them a dry-hard honest customer base and a reputation for excellence in customer care. Their example serves as an inspiration for businesses aiming to provide top-notch customer service in the digital realm.
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2. Staying In Touch With Your Customers
After the sale, discover resources to continue to build the relationship with your customer instead of simply setting your sights on the next transaction.
Some of the opportunities can include:
- Being active on social media.
- Sending clients a special incentive.
- Regular communication, such as email newsletters.
Form the lines of communication with your customers, allowing you to interact with them according to their preferences. For example, you can send personalized texts, promo codes, invitations, announcements, and more via SMS.
Your communication should be meaningful, relevant, and purposeful, as there is a delicate border between keeping in touch and becoming a nuisance. Creating personalized video clips is an excellent way of reaching out to individuals. A good bond between your customers can also improve the email open rate.
3. Show Your Appreciation
Stop and think about the beautiful ways you can show your customers you always appreciate them. For your company, that might mean sending a personalized thank you message after your customers buy a product or surprising them with a voucher for their next purchase.
Customer appreciation is more than being extra nice to your customers. 60% of consumers will not buy from companies that do not care about them. Customers always value their experience while consuming a product. A great customer appreciation strategy will increase your ROI and customer retention rates.
4. Easy Access For Customers To Contact You
Companies work daily to provide consumers with the best possible product and position their organization at the front of the pack. However, a straightforward way to achieve your goal and keep your consumers loyal, which is often overlooked, is to make it easy for your customers to contact you.
5. Keep Relevant
Give your customers a solid reason to purchase with you again and continue to refine. Moreover, improve your offerings and remember to clarify to existing customers what’s new. Changes and updates are more reasons to interact with your client base.
Changes to your business goals and general updates are great reasons to communicate with your customer base, so make sure you are constantly reviewing new strategies and practices. Then, gradually see how to make this work for you and your business.
You are into your business to make money; even though your customers are aware of that the whole time, they still want to believe that you see them as individuals with emotions and not just a sale. Therefore, it would be best if you treat them with respect & how you would want to be treated. It goes a long way.
What to Keep in Mind to Ensure Better Customer Service?
See how customers can help improve customer service by collecting valuable feedback and insights from customers and employees. Get started today to garner targeted responses to enhance customer service operations.
Effective customer service put into cultivating long-term customer relationships will result in long-term stability for your business. So be relevant and update your customer service skills.
Use modern technology like Customer Service Tools and customer satisfaction tools for better customer service, which provide fast support. The best customer service teams try to know which part of automating and which requires a human touch is essential to the operation. So always learn the distinction and apply it to your everyday work.
Some Frequently Automated Workflows
Sending out authorization emails using email marketing software like Customerly, Getresponse, or any other Getresponse alternatives is something you should automate to ensure you keep your customers coming back. The best customer service email templates that would help you deliver excellent customer service and save you a ton of time & effort.
Follow-up SMS Messages
Based on the statistics found in 99 firms, 91% of clients are interested in signing up for text messages. Of course, this statistic doesn’t mean that Customers click on the links in your readers every time, but it’s better than your marketing email getting lost to bulk deletion or clogged inboxes.
Conduct critical product demos and ensure a human-like sales representative carries them out.
Live chat is the fastest way to support loyal customers and can help you solve problems immediately.
Once your customer asks you a question, you can respond in seconds. It’s quick and makes for fantastic customer service. Conduct every last live chat customer handled by a human, so hire the extra staff to run your 24/7 customer support operation.
Understanding customer needs is vital. So investing time in your staff will be great to keep your customers coming back. From the beginning, you can build quality SaaS link-building techniques and improve your SaaS business’s growth to get more customers. The further you learn about your customers, the more you will likely understand customer needs and expectations.
Customerly.io is a simple and powerful platform with unique features that let it hold its own in a saturated customer service software environment. It is an excellent partner to help you create and implement a customer support strategy across your business, including onboarding. Want to know how it works? Then Sign up for our free plan Today!