APRIL – “International Customer Loyalty Month”
While we celebrate customer loyalty the whole year, we wanted to take some time to recognize this April with our post on how we can leverage customer loyalty.
“CUSTOMERS” are the lifeblood for any business. If we need to build a thriving business, we need to take care of our biggest asset, the Customers. But sadly, most businesses are hyper-focused on acquiring new customers, what they tend to forget is, the relationship we build with the customers after successful purchase. Failing in customer retention means one need to constantly acquire new customers to maintain the business stable – But it’s simply not possible.
In fact, retaining our existing customers is 5x time cheaper than acquiring new ones. And researchers found that increasing customer retention by 5% can lead up to 25-95% increase in revenue. So, why do we spend more on only acquiring new customers? Let’s have a look at how we can use the past misses to come up with a new strategic plan on improving customer retention in the future.
Why do existing customers leave?
If we want to improve customer retention, it’s great to step back and figure out what’s affecting the customer retention rate. Once the reasons are clear, we can easily take steps to tackle those misses and offer a better customer experience and thereby improve the customer retention base.
So, how we can figure out why there are leaving? There may be many reasons for this. According to a study it is revealed that,
- 68% will leave due to Perceived Indifference
- 14% will leave when the product/service your offer creates dissatisfaction
- 14% will leave because of competitive reasons
- 4% will leave due to some natural attrition
The above confirms that the primary reason causing the customer to leave is perceived indifference perhaps that they found a similar product at a cheaper rate or the product/service is not the right fit for them.
To curtail this, here we’ve presented top customer retention strategies you can start investing in.
Deliver world-class service
Did you know, only 4% of your dissatisfied customer approach you and make a complaint, the remaining will simply leave? A complaint brings a great opportunity to return them satisfied and delighted. Serving them in a timely manner opens the door to turn them as a loyal customer too. And this has also been proved that 8/10 customers are willing to pay more if they receive exceptional customer service.
To turn customers into loyal customers, serving them on time with an amazing service is a must. Thanks to modern technology, that offer multi-channel support. Instead of letting customers go through layers of mail or wait of long hours, we can serve them via phone, mail, live chat, social media and more.
Keep your customers in a loop
Communication is the key to build a strong relationship whether it may our life or business. In this highly competitive business world, regular communication with customers is more important to leverage customer retention. This may sound tedious but a quick call that takes only a few minutes of our day that can do wonders. Frequent communication makes your customers feel valued and more important thereby build trust in them.
Personalize your communication
Even though frequent communication is essential, irrelevant regular content(common to all customer) causes them to churn. Here comes the part, Personalization.
No one love canned messages, treating customers in a personalized manner is one of the great ways to bolster customer retention. Personalized communication based on customer location, previous purchase history, and other demographics gives them a more relevant experience.
And personalization is a key to trounce over the competition. Competitors might be a larger organization than you, they may also use sophisticated tools, but with regular relevant content, one can win customers more easily.
Offer tailor-made surprises
We all love surprises. In the same way, just think of an extraordinary offer that we can give our customers without their knowledge. Surprising offers on their special occasion make them feel that you care about them.
For instance, let’s say you’re going to give a follow up to a customer who showed an active interest in your product but haven’t bought yet. So sending them a special tailor-made offer can help to make a quick buying decision.
Continually educate customers to success
Educating customers is something that business can benefit from across all phases of the customer lifecycle. As new potential customers are onboard to use your product for the first time and in case of existing customers they need to know about the newly added features and upgrades. This also ensures that they can use the product successfully, which in turn improves customer experience and retention with your product. There are numerous ways available to educate your customers such as How-To guides, Free training videos, Webinars, Blog posts, Trade shows and more.
Leverage feedback surveys
The best strategy to know whether your customers are happy or not is: let them give their own thoughts. While some customers leave without any shot-out, there are few who look for ways to tell their thoughts. It’s obvious that criticism and negative feedback from customers are hard to deal with, but it helps to leverage your customer retention to the next level.
The key to generate high-level customer retention is to have a keen focus on customers and their needs. We should cater to every one of their needs, build a personalized relationship and let them feel valued and become your loyal customer.
Do you have any strategy that works great for your business? Share it with us in the comments below.