Do you know customer retention can save you five times the money you spend on acquiring new customers? Wait, there’s more to it.
According to an American management consulting company Bain & Company, a brand can increase its profit by 25 percent to 95 percent only by increasing the customer retention rate by 5 percent.
Sound crazy? Well, it’s a fact that it’s cheaper to convince your existing customer to repeat their purchases than to reach out to new customers.
But what is customer retention?
Customer retention is the strategy or activities that brands perform to reduce the number of customer defections, i.e. losing customers to the competitors or a decline in the number of purchases by existing customers.
The aim of customer retention is to convince your customers to continue purchasing from you by offering them some benefits. Consequently, it creates a win-win scenario for both the customer and the brand.
So, if you are planning to retain your customers, here are a few strategies that would work best for your business.
Provide Excellent Customer Service
Almost every company offers pre and post-sale customer services, but most fail to understand their customers’ needs. It happens because of a communication gap between the customer and the support team.
To improve your customer support experience, provide multiple customer support options, such as live chats, emails, toll-free numbers, or social media. Also, hire customer representatives who are fluent in different languages, or at least in the native languages of the places your company offers services.
However, remember the primary purpose of having a support team is to resolve the customer complaint as soon as possible. So, solving an issue real quick will increase your customers’ trust in your brand.
Offer Surprise Gifts and Discounts
Who doesn’t like gifts or discounts? Therefore, one of the proven ways to show your customers that you value them is by offering surprise gifts and exclusive discounts.
You can track your customer’s birthdays, anniversaries, or other special life events and send them gift cards, vouchers or offer flat discounts on the products they regularly purchase.
This strategy will not only help you retain your customer but also help you gain other potential customers when they post pictures of their gifts on social media.
However, it doesn’t always have to be an expensive gift. You can always send cards, flowers or emails to wish them on their special day. Most importantly, the message should be clear that they are special for your business.
Conduct Customer Loyalty Program
Customer Loyalty Program or Customer Retention Program is a strategy to offer reward points to customers for every purchase they make. The customers can use the rewards received to pay a part of the following billing amount or purchase from the list of products mentioned under the loyalty program.
Apart from reward points, some loyalty programs also offer cashback to their customers in their digital wallets or directly to their registered bank account. Hence, the strategy also serves the brand as they sell and earn more.
Pro-tip: In order to encourage customers to subscribe to your loyalty program, you can offer welcome points as a starter.
Launch Android and iOS Apps
Believe it or not, Apps are a sure way to grab your customers’ attention for a longer time as your apps appear on your customers’ screen every time they unlock their phone. Thus, reminding your customers of your brand 24×7.
Besides, apps provide a better user experience than websites as they are easier to navigate. With features like personal notification, you can jog your customers’ memory about the products they were surfing for or the ones they have left in the cart.
To help merchants retain their customers, Bikayi provides PlayStore App Services for Android and iOS. And along with the package, 1-year of unlimited downloads, shares, and updates of your app.
Send Personalised Emails
Email marketing can never go out of trend when it comes to customer retention. Sending personalised emails is a way to improve your bond with your customers by making them feel special.
You can use any data-driven online tool like Autopilot, Hubspot, Drip, MailerLite or others to track the customers’ actions on your app or website and trigger personalised emails that convert.
For example, if your customers searched for sunglasses but left without buying. Send them an email saying, “Hey! Did you find the perfect sunglasses? Check out this amazing collection specially curated for you.” And with that, add the link to your sunglasses product page. However, take care to not spam their inboxes by sending frequent emails.
Focusing on your existing customers is something which you should always consider as they have already trusted your brand once. By maintaining a good customer relationship, you can again assure them to choose you repeatedly in the longer run.