In this era of tech-driven digitalization, it has become even more crucial than before for global firms to retain their customer base. Formulating well-planned client retention strategies empowers brands to influence & retain their existing customers uniquely and more effectively. In this blog post, we will learn about the best client retention strategies you can implement in 2021.
How Client Retention Works?
A well-designed client retention strategy revolves around making your customers feel more engaged to your brand. So, a typical client retention process works by attracting your existing lot of customers to your offered products/services while simultaneously establishing stronger, deeper relationships to strengthen the bond further. The comprehensive process comprises well-defined steps to identify, track and then extend personalized offers to the most valuable customers.
Why Focusing On Client Retention Strategies Holds High Importance?
Industry research has shown that selling products/services to an existing customer is much economical compared to convincing the new ones for same. Moreover, the success rate of selling to a new customer stands at 5-20% while it is 60-70% for an existing customer. Following are some crucial competitive advantages client retention brings along that make increased focus on client retention strategies of paramount importance –
- Improved conversions
- Higher profit margins
- Reduced costs
- Improved customer lifetime value
- Improved brand advocacy
- Stronger brand image
- More referrals
- Higher average order value
7 Best Client Retention Strategies For Your Business
Here, we have listed some of the best, trusted client retention strategies that actually work wonders when it comes to optimally engaging & retaining your customers.
Loyalty Program Implementation
Having a strategically-designed loyalty program launched for your customers is the optimal move to adopt in 2020 if you actually crave for augmented customer retention. Leading global brands in diverse industry verticals including banking & insurance, travel & tourism, e-commerce, education, retail etc are gaining significantly by launching their own loyalty programs. The most promising benefits of loyalty programs implementation are not limited to customer retention but also include brand advocacy, better revenue growth, stronger customer relationships and more.
Set & Meet Customer Expectations
Provide something concrete for your customers to look forward to. However, in order to set expectations, you must get a better understanding of your customers first. The ideal approach for that is to make commitments with honesty. Don’t make unrealistic promises that set unreal expectations not worthy of getting fulfilled. As a brand, you should know what you are capable of and hence make commitments accordingly. For example, if you commit for product delivery within an hour of order placement, ensure same is not exceeded. Moreover, delivering it even faster, like 20 minutes, would exceed the customer expectations surely.
Omit Possibility of Negative Experience
A badly treated customer or one with bad product/service experience finds it often hard to get rid of that weird feeling for your brand. Such an annoyed customer, with abundant social media followers, bears the potential to spoil your business image by speaking negative about your brand. So, rather than rebuilding your image again in front of existing customers, ensure to avoid the scenario that delivers a negative experience to them in the first place.
Build Trust By Fostering Relationships
Modern consumers are not easy to convince; however once they choose to buy your products/services, they display their preliminary trust on your brand. Similarly, by acquiring a new customer, you gain the opportunity to carry on this initial stage trust to another level. Most brands fail at this crucial level that makes them lose their valuable customers. Considering customer relationships of paramount importance is thus the first step in the process of building stronger customer relationships. Don’t miss any opportunity to thank your customers by sending them suitable emails, text messages etc. This indeed is one of the best approaches to post-purchase engagement.
Personalize Omnichannel Experience
As per a survey, 79% of customers agreed to expressing their interest in offers that have been suitably personalized according to their preferences. Hence, analyzing the customers interactions with your brand is of paramount importance. In fact, getting access to entire customer data including who your customers are, what are their preferences, what platform they utilize for interacting with your brand etc. can help you design more personalized offers for customers and send same via varied channels like SMS, email etc.
Strengthen Customer Service Model
Customer service directly impacts retention & revenue. As per a survey, 52% of customers agreed to having made additional purchase from a brand that offered them a positive experience during their customer service interaction. Being proactive has to be the key if you want customer service to make a sound impact and self-service Chatbot offers the perfect means to accomplish same. AI powered Chatbot, if rightly implemented, can elevate the customer experience to a different level. Customers get automatic response to their queries in quick time that makes the overall customer service impression a lot better.
Encourage Customer Participation in Brand
If you can show customers that their opinion matters for your brand, they feel more valued. Sending a follow up message inviting customers to complete a quick survey after their newest purchase with your brand is a simple way to do that. No matter if the customers don’t get the time to fill out the survey questionnaire, they will still feel nice to know that your brand wants to be acquainted with their opinion. Moreover, implementing the received survey feedback as per acceptable feasibility also holds high significance in this regard.
Launching Your Own Loyalty Program Makes Client Retention Amazingly Easier
If it’s about influencing customers, customer loyalty programs have emerged as crucial tools to augment client retention. The powerful role of customer loyalty programs in fostering improved retention makes them indispensable for including in your customer retention strategy. However, focusing on other key pointers as mentioned above is also crucial. It’s only via a comprehensive approach that you can boost customer retention better. If you want more information on fostering improved client retention via loyalty programs, connect to our experts now.