Brands spend as much as 5 to 10 times more on acquiring new customers than selling to current customers. Despite this, customer retention still continues to take the back seat when it comes to marketing.
Why you should make customer retention a priority for your brand
Consumers today are continually bombarded by a wide range of messages from marketers and the brands they represent. Customer retention is all about preventing your current customers from defecting to other companies or brands. Applying customer retention strategies is cheaper than acquiring new customers.
In addition, marketing to existing customers is easier and more likely to be successful. Existing customers are more likely to make a purchase than new customers. Existing customers already have some level of experience with your brand and are therefore more willing to spend money than with other brands.
Reports also show that existing customers spend more money on orders than new customers. They are also more likely to spend money on new products than new customers. Existing customers therefore offer greater value than new customers.
Customer Retention Strategies You Should Use
There are a wide variety of customer retention strategies available. The strategies you use should be formed around the goals you have set for your business. The following are some customer retention strategies that you may want to consider for your business.
1. Give gifts and offer discounts
Everyone likes to feel appreciated and that includes your customers. One of the best ways to show your customers that you appreciate them is by giving them discounts and gifts. For example, you can offer them discounts on products they purchase frequently or new products that they may be interested in. Be sure to include a message to show your appreciation for their continued support. Make it clear that they are receiving the gift or discount because they are a loyal customer.
2. Invest in acquisition of customer data
If you truly want to meet your customers’ needs and improve customer retention, you’ll need to know what works and what doesn’t so you can capitalize on your strengths and improve your services or products. You can learn more about your customers through the acquisition of customer data. There are various ways to achieve this. Some great examples include surveys, customer service interactions as well as transaction histories.
3. Keep customers engaged and informed
Make customers feel like they are part of your brand’s journey by keeping them up to date with the latest developments including new partnerships, upcoming events, milestones you have achieved or new products that you’ve launched. A monthly newsletter is a great way to keep customers engaged while updating them on the latest developments.
4. Personalize communications and offers
No one likes to feel like part of the crowd or just like another number. People also feel frustrated when they keep receiving information that either isn’t interesting to them or relevant. Personalizing communications and offers will therefore go a long way in improving customer experience. Go beyond simply using the customer’s names in the email subject line and addressing your communications. Share information and offers based on the customer’s purchase history and preferences. Customers are more likely to stay engaged and even make purchases when provided with information that they are interested in.
5. Make use of gamification
Gamification is a great way to keep customers engaged and motivated. It’s a fun way to reward customers that are loyal to your company and keep them loyal. Gamification is highly effective as it appeals to the competitive nature of your customers.
Modern gamification tactics make use of customer data to create experiences on different levels. All the levels are connected to driving value for the customers as well as the business. This strategy increases engagement, strengthens loyalty and improves sales. It provides benefits for both the customer and the brand.
Cultivate Long Term Relationships with Customer Retention Strategies
Customer retention is vital for business continuity. Applying a strategic approach to retaining customers will help to ensure their loyalty in the long haul. Apply the tips outlined above to improve customer loyalty to your brand.