One of the biggest tragedies for businesses today is that some managers believe that they can simply retain customers by having quality products. It is true that quality is critical, but customers can easily drift to competitors if you do not employ the right strategies to retain them. As a company, your target should be growing the customer base as opposed to losing it. This is why you need to identify and employ the best strategies for your company to stay ahead of competitors.
This post takes a deeper look into customer retention to answer two big questions, “what is it?” and “what are the best strategies for your company?”
Why Customer Retention is Crucial for Your Business
Customer retention is an organisation’s ability to keep its clients returning to buy more. It is an indication that the services or products offered by the company are addressing their challenges. Therefore, they feel comfortable coming back to buy more than shifting to competing brands. Check out the main benefits that come from good customer retention.
- Helps to cut the cost of acquiring new clients.
- Crucial in growing sales for your business.
- Provides a good way to transform repeat clients into referrals.
- Allows you to gain insights into the targeted clients.
- Very helpful in building a stronger brand.
The Best Strategies You Can Use to Retain Your Customers
You have probably heard the saying that “a customer is the most important for any business.” It is true, and after you get that client, it is even more important to try and retain him/her. So, here are some useful strategies that you should employ to retain clients.
Provide the Best First Experience with Your Products
When clients get ads about your products or services, they get excited and rush to buy. However, this excitement often subsides after some time and what is left is the original experience with the product they got. If you can make this experience awesome, the client will always come for more.
You can achieve this by ensuring the products are personalised and the process as enjoyable as possible.
Create a Reliable Customer Feedback Loop
There is nothing as satisfying as a business that follows customers to ask them how they fared with the product or service. They appreciate that you do not only want to understand the experience, but also improve it. Here are some reliable methods that you can use to gather customer feedback:
- Send the clients surveys about the products or services they bought.
- Use the text-feedback model.
- Collect their emails and send them requests for their sentiments.
- Engage them on social media through product, brand, or services-based groups.
Reward Loyal Clients and Promoters
Unlike in the past, most clients today want to feel appreciated to stay around. This appreciation can be done in different ways, but the most common is rewarding them. For example, you can attach a gift to a client who buys from your store for the 20th time or give a redeemable coupon.
The same rewards should also be employed for promoters to motivate them to work even harder.
When deciding the nature of the reward, balance the company’s profitability. You should also factor in the campaign’s ability to win more customers as a way of growing the market share, sales and success.
In any business, attracting clients is only the first step. What is more important is how to retain them as loyal customers.
In his view, Adrian Cheng, the founder of K11 brand, emphasises that retaining your customers can help to guarantee sustained profits and simplify the process of long-term planning. However, he warns managers to ensure they carefully study the changing needs of clients to appreciate and address their emerging needs.