When you think about shopping or eating out, you might click on your favourite brand.
Am I right?
From shopping to eating to hanging out, people mostly prefer their favourite place/shop.
Do you know why? What’s the reason?
What is it that allows a customer to keep coming back to back for more?
Maybe the quality of the product is good, maybe the prices are reasonable, maybe the shipping is quick and seamless, better customer experience or the brand sends you super personalized discounts and offers that make you feel special and a strong bond between you and the brand.
However, If you’ve visited back the place/store/brand for the second, fourth, or fifth time to purchase then the brand has the best customer retention strategies to retain their customers.
Did you know? Building up your customer retention rate is way more profitable than just focusing on acquiring new ones.
When you acquire a new customer, it means a new customer/visitor has ordered or purchased something for you. Although it’s great to have strategies in place to convert new customers into repeat customers.
Have you ever imagined, how much more revenue you could earn if you had that strategy to bring each of those first-time customers to make a repeat purchase again and again?
As a business owner, it should be your goal to have Customer retention program in place to help guide visitors to the next stage in the journey. Whether it’s through social media marketing campaigns or email marketing campaigns or building a social community, you have to make sure you provide effective values on various platforms and channels to push customers toward you.
In this blog, we’ll look at the best customer retention strategies and How to retain customers who are leaving? to turn visitors into brand advocates.
Let’s drive in the following blog below:
What is Customer Retention?
Let’s understand the definition in simple language, Customer Retention is the ability to get a first-time customer to come back and purchase your product or order again, and to keep those customers engaged with you through social media, email, SMS, or any other channel you use to build customer engagement and positive customer relationships.
According to a study:
The probability of selling to an existing customer is 60%-70%, whereas the possibility of selling to a brand-new visitor is only 5% – 20%. Ultimately, customer retention is more cost-effective and has a higher ROI than acquisition strategies do.
The Benefits of Customer Retention
There are a variety of reasons, we know every business loses customers. Take, for example, the car dealership that, once sell the car, never contacts the customer again.
For other businesses, maybe a customer purchased because of a specific sale, and after that, they haven’t been back and they probably won’t if you don’t offer them discounts, products, or services.
According to a study, it showed that a mere 5% increase in customer retention rates can increase profits by 95%
Also, a study estimates that 80% of your future revenue may come from 20% of your current customers.
Every business’s aim is to save money and have profit, think of the money your brand can save with retention. You can spend less on marketing by targeting customers instead of prospects.
Customer retention can lead to increase revenue and profit for your business. One of the customer retention examples is: loyal customers spend 67% more on products and services than new customers.
Here are some benefits customer retention helps you with:
- Increase time to revenue
- It helps build good customer relationship
- Provides an opportunity to identify and explore referrals and sales.
- Enhances brand perception
- It helps clarify customer expectations and needs.
What are the 5 Customer Retention Strategies?
The best customer retention strategies that will help you retain more customers in your business are given below:
1. Offer a customer loyalty reward program to increase repeat purchases
Loyalty is a part of the business that helps brands increase their customer retention. It is one of the best ways to get repeat customers. Loyalty programs are great at bringing customers back to earn rewards for simple actions like following you on social media platforms, engaging with your social media posts, writing product reviews, referring you to friends, and more.
By rewarding customers for these actions, you’re giving them a reason to return to your store and purchase again.
Considering 56% of customers say they would likely make more purchases with a brand that offers a loyalty program, it’s a great tool to drive more leads and retain each customer for future purchases.
Want to see how loyalty reward programs are, then there is no other platform than Bingage that helps business to earn customer loyalty and engagement through their user-friendly services. Book a free demo to see how we help brands boost customer retention.
2. Use customer data to personalize every channel
Knowing exactly who your customers are, what are their expectations, and what they shop for will help you personalize every marketing channel. And you can collect this buyer profile data with the help of the personalization method.
79% of consumers said that they are only interested in engaging with offers that have been personalized based on their previous interactions and purchases with a brand.
Whatsapp messenger is a great way to personalize the experience for customers since you can follow up with customers through messages, you can give them the latest updates about your products based on website actions, and create a back-and-fourth conversation that makes the discussion more engaging for the users,
Want to see how you can collect customer data for personalized messages, WhatsApp messenger, or SMS marketing?
3. Increase relationships of your website with social media
90% of people are active on social media platforms nowadays. It is the best platform to increase the engagement and retention of your customers. They spend so much time pursuing Instagram, Facebook, Twitter, and other popular apps. If your audience already knows your brand and they’ve had a positive experience, they will look for ways to engage with your website and on social media.
It’s a true fact that 53% of consumers will post positive reviews or comments about brands on their social media, and this is something you’ve seen in the ‘tagged” section on Instagram, where customers will tag you while posing with products, dishes they’ve bought it from.
This is not only a great way to amplify user-generated content, but giving your customers a platform and community where they can follow you, engage with you, share content with you, and even talk with you. This helps increase customer retention because you are extending the relationship beyond your brand website and to a channel that your customers are familiar with.
4. Offer great customer service
Great customer service is just as essential as your marketing strategy. Maybe you were familiar with this before, but customer service actually has a direct impact on retention and revenue.
For instance, 50% of customers say they have made a repeat purchase from a brand after having a positive service experience, when you show customers that you’re there to help them, you really care for them, they will appreciate and respect you more, and they will always remember at the time they want to shop.
5. Ask for feedback and reviews to show customers their opinion matters
When you ask your customers for feedback, maybe some of them do not fill out the form but they have a view in their mind that the brand loves to know their opinion.
Asking for feedback is the best way for customer retention as by the reviews of customers, give you a chance to know them and know their expectations which helps business owners to implement those things for the future.
Customer retention isn’t likely to drastically improve overnight, but your efforts and putting clear strategies in place to elevate your product over time can give you a positive result.
Understanding the regular customers, setting expectations, and removing friction points are the key ways to improve the relationship your customers have with a particular brand.
By keeping your customers happy and engaged with your product, you’re increasing the likelihood that they will remain loyal and become VIP customers for your brand. The dedication and hard work you put in for your customers will pay off in the long run, for sure.
Some of our related blogs:
- 10 Benefits of Having a Customer Loyalty Program in Restaurant
- 5 Key Questions (Must Include) in your Restaurant Customer Feedback Form
- What is Reward Marketing? How it increases customer loyalty & retention.
- WhatsApp Marketing for restaurant – The ultimate Guide
- 5 Post-Purchase Emails (with examples) to engage with customers