If brands want to gain customer loyalty, then they must have a laser focus on retaining their most valuable customers. So, what is customer retention? It’s your ability to keep your customers engaged by offering them great products and great service with high perceived value across every touchpoint in the customer journey. Loyal customers mean less churn, more transactions, higher gross margins and significant increases in revenue growth. Consider these facts:
Customer expectations have changed dramatically over the years and it’s a staple to nurture your existing customers and give them myriad reasons to stay. Customer experience bells and whistles will only get you so far, customers want to be assured that brands have their backs. In 2020, in order to improve customer retention rate, it’s imperative to focus your strategies keeping customers at the fulcrum point and recognize your most loyal customers, identify purchasing behavior preferences and analyze relevant data. Retention is poised to be the top priority for brands to drive growth and customer engagement. There’s been a sea of change in the way brands communicate with their customers and everything is oriented toward agility and flexibility. The playing field has evolved and brands must adapt.
Here are some very important trends in 2020 that are being used by brands, manufacturers and retailers to retain loyal and very profitable customers:
Your goal should be to create customer relationships that deliver greater lifetime value. When current customers buy more per transaction and with greater frequency, then you have a loyal customer who will take your business to a much higher level.