Did you know the customer acquisition cost for a new customer is 5X more than retaining an existing one?
We swear we are not making it up. While there is a certain appeal to converting new customers, keeping customers coming back will result in a greater ROI in the long run.
So how do we go about creating a customer retention strategy that keeps your customers happy and feeling valued?
Let’s take a look at the 7 most important strategies when it comes to customer retention. These 7 strategies are currently being used to inspire loyalty, by some of the biggest brands.
1. The Obvious One
The best way to ensure customer retention is to prevent a customer from leaving. There are always signals of your customer’s impending departure. If you really pay attention, you can always notice these signs. Identify customer behavior, such as purchase patterns and customer inquiries. You will need to analyze these signals to stop your customers before they churn.
2. The Mighty Feedback Loop
A process for obtaining customer feedback is quintessential for a brand. Obtaining customer feedback and sharing that information with the rest of the organization should be a priority. This is where a customer feedback loop comes in handy. It provides a system to collect, analyze and distribute customer reviews and surveys. The most common way is to run a survey on Facebook or Twitter.
3. “Haven’t seen you in a while.”
If your customers haven’t interacted with your brand for a while, you should reach out to them and establish your relationship once again. Being proactive with your communication can give you a major advantage when it comes to customer retention. Adopt a communication calendar to manage customer engagements.
4. It’s All About Loyalty
Though it is pretty important to focus on customer defection, you can’t forget about your loyal customers. A customer loyalty program rewards customers for their continued loyalty. The more they interact with your business, the more they’re rewarded. This keeps customers happy as they’re getting rewarded from the customer experience.
5. Do Not Forget the Trusty Newsletter
A company newsletter can be a simple and cost-effective way to retain customers. Use email automation to send updates and inform them about the “exciting offers” you are giving out. It is minimalistic and it reminds customers about your brand every time they open their inbox.
6. Gamification Could Be Your Savior
Gamification of the user experience can increase your customer retention considerably. The best strategy to incorporate gamification into your user experience is Referral programs. Encourage and empower your customers to become advocates for your brand.
7. All Thanks To You
Taking the time to thank your customers goes a long way towards building a memorable relationship with your customers. Sending out gifts and thank you notes is a simple yet effective technique when it comes to customer relationship management. It distinguishes faceless websites from lovable brands and even boosts customer satisfaction.