In today’s era, many leading businesses are putting more effort into retaining a client over acquiring new clients. While attracting new consumers has its appeal, maintaining existing consumers will yield a higher ROI over time – and it will cost 5 to 25 times less. However, it is often easier to say so than act, especially in today’s competitive digital age. Consumers are continually bombarded with sophisticated advertisements attempting to persuade them to switch to another company or service. On top of that, only 18% focus on customer retention strategies, while 44% of businesses focus on client acquisition. This data-driven article will highlight some of the best tactics of successful customer retention an enterprise can follow.
The most common misconception organizations worldwide believe is that if they have a great product or service, customer retention will naturally follow. The strategy may provide some benefits in a few cases, but over the long term, it is rarely effective. A recent study also backed the importance of customer retention, revealing that existing clients generate 68% of sales for an organization.
We have narrowed down some of the must-haves a customer success team can put to the test in order to improve customer retention.
The importance of gathering facts and figures before making improvements cannot be overstated. Similarly, to retain clients, the businesses must use conversion metrics to track and analyze the ratio of retention alongside the factors that make them churn.
Nearly 90% of businesses believe that providing excellent customer service makes a huge difference in buyer retention, which is almost impossible to achieve without incorporating a proper feedback channel. A buyer’s dissatisfaction with the service can only be resolved through fostering an adequate communication channel; otherwise, they may conclude that you don’t care about them. Many businesses align a ‘first point of contact’ for their clients to collect their feedback or conduct a survey, asking their clients to participate. Proven’s Customer Success Director Osman Qureshi explained, ‘I sit down with our clients, gather feedback, and liaise with the other concerned departments like Government Relation and Corporate Immigration. Depending on the feedback, we strategize how far we can stretch so that our customers receive the best services.’
In terms of retention strategies, email marketing is 56% more effective than any other method, making it the most efficient approach. You can send a newsletter whenever your organization introduces a new service or any update of regulation or laws that can impact the business. If you want to send promotional emails or updates to your entire consumer base at once, automating the process will be easier.
On many occasions, communicating with the clients takes a back seat in between other essential tasks. When consumers don’t interact with your brand for a while, you should reach out and re-establish a relationship. Consider establishing a communication calendar to enhance engagement and create opportunities for upselling and cross-selling.
Today’s consumers like personalized approaches, which are only built to cater to their needs, whether a specific product or how the service is offered. Identifying your audience personas and communicating with them on their preferred channels will encourage them to speak freely. Keep reminding them of this throughout and after the buying process. Make your communication sound human by avoiding canned responses.
Millennials are loyal to their favorite brands in 44% of cases, and trusting the brand or their services makes the difference. In a nutshell, 81% of consumers say trust is essential when making a purchase decision. However, one must remember that faith cannot be built overnight. Whether or not your customers perceive your brand as trustworthy depends on how consistently you follow through on your brand promises and do what you say you will do.
People love to feel appreciated, and customers are no different. Giving them a surprise gift or discount is one way to show you appreciate their business. The customer service team can send them a personalized professional message explaining what the giveaway is and why they are receiving it. You can also provide them with a coupon code or discount in a personalized email, indicating that they are receiving it as a thank you for being loyal to your business.
Gaining new customers can be a sign of business growth, but losing them can be very costly as the global average value of a lost customer is $243 per day. Your company’s existing clients are more likely to buy from you in the long run than potential customers. Now that you have read this list of customer retention statistics, it’s time to plan your customer retention strategy. Rather than focusing on trying to acquire new customers, shift the focus on how customer service will grow a base of loyal consumers who will serve as mini brand ambassadors and keep your company’s profit margin on the positive side.