Customer retention refers to a business’s capacity to convert customers into repeat buyers and keep them from switching to a competitor. It tells you if your product and service are pleasing to your current customers. Most subscription-based businesses and service providers rely on it as well.
Most organizations put more focus on getting new customers than retaining customers.
Client retention, on the other hand, is far less expensive for businesses than customer acquisition. This pattern emerges in all studies on retention vs acquisition, but it is difficult to estimate how much cheaper it is; some studies claim it is five times cheaper, while others say it’s up to 25 times cheaper. So, if client retention is less expensive, why are so many businesses focusing on new customer acquisition?
It is not easy to stay competitive in this digital age; there are lots of great adverts and ways to advertise a business online to customers and if you do not have a strong customer retention strategy, they will easily leave your business and jump ship. However, if you have convinced your customer to buy once you can do it again, the hard part is usually getting them to patronize you at first. All you have to do now is give them reasons to stay, which is why we have compiled a comprehensive guide to client retention techniques.
Strategies to Improve Customer Retention
Surprise Gifts and Discounts
Customers are people, and they enjoy being appreciated. Surprise gifts and discounts are one method to show your consumers how much you value them. You may give them a discount on things they buy frequently, as well as a brief and quick letter from the customer care staff explaining why they are being surprised. The actual language of the message will vary depending on your company’s brand and style, but it should be clear that they are receiving this discount because they are a loyal customer.
Another option is to create a VIP list for your returning customers and send them exclusive discounts. Customers will benefit from this because they will receive a discount, will feel appreciated, and will feel like they are members of a unique club – which they are!
You don’t have to give your customers a discount all of the time; you may also send them gifts. You may send them a card with a voucher for your store on their birthday, for example.
Giving consumers unexpected gifts and discounts not only motivates them to buy from you again, but it may also help to improve your brand. Customers who get unexpected gifts are more likely to share them on social media, enhancing your exposure and potentially attracting new customers.
Consistently gather customer feedback
Customer feedback is one of the most powerful tools you have for retaining customers and lowering churn rates. It helps to hear it right from the horse’s mouth if you want to know what is and isn’t working for your clients.
One of the most essential tools you have for increasing customer retention is customer feedback. Increase the number of surveys you run to give customers a voice. After you have resolved an issue, ask for a “thumbs up or thumbs down” in a customer satisfaction survey. It is also a good idea to ask more detailed questions, such as:
What would you say is the best way to characterize your experience with our product? What are the things that aren’t working for you, and why? Which of the following customer service channels do you prefer to use?
Ask inquiries that go to the heart of the customer’s effort. Customers, for example, frequently choose self-service due to its convenience. So, you may do surveys to discover if your clients like your self-service alternatives or if you’re making it too tough for them to locate the information they require.
Provide Excellent Customer Service
This may seem self-evident at first, but what a firm considers outstanding customer service does not always correspond to what a client considers excellent customer service. When it comes to perception, there is frequently a big disparity. Customers feel that only 30% of firms are customer-centric. According to a 2017 study, 8 out of 10 customers are so dissatisfied that they are willing to pay more for a better experience.
Here are a few suggestions for improving customer service:
- Deliver a consistent and cohesive experience – whether you’re talking to a customer on the phone, over email, or through a live messaging service, they should feel like they’re getting the same level of care and attention.
- Provide a variety of contact channels to accommodate different communication styles.
- Assign the most qualified agent to the most qualified client by assessing the customer’s demands and allocating the most qualified agent to that area.
Click here to see how customer service aids customer retention
Keep Customers Informed
Make clients feel like they’re a part of your larger team by keeping them informed about new product lines, new alliances, or significant corporate achievements. You can do this by sending out a monthly email newsletter.
Use context to deliver personalized support interactions
Customers become irritated when they must repeatedly explain an issue. Customers are more likely to depart if they have to deal with exhausting, recurrent interactions.
Give customer service representatives the tools they need to quickly gather client data and elevate the discussion.
Agents, for example, have access to pertinent consumer information (such as language, contact details, and notes). They can also see the transcripts of their earlier discussions.