Customer retention is one of the major concerns of all businesses. We are forced to constantly improve and find new ways to influence people to come back and buy our product/service.
This is only logical since customers are indeed your biggest asset. Why? Because loyal customers represent 55-70% of sales.
But how to make them want to come back? There are countless strategies out there, but here are some that really work.
Focus on Customers, Not Lead Generation
Apart from customer retention, lead generation is another major concern for businesses. In fact, too many businesses prioritize lead generation when in fact, they should be focusing on customer retention and nurturing relationships.
Most of your profit comes from loyal customers which is why you should pay more attention to them. Here’s why:
- About 78% of them spread the word about your product/service
- More than half of loyal customers refuse to buy from other brands
- It costs more to find new customers than to retain loyal ones
The truth is, most businesses and their marketing campaigns are focused on acquiring new customers. While you should be trying to reach new customers, you should think more about how to retain loyal ones.
This is where most of your profit comes from. They buy your products time and time again. Not those who take a quick glance at your website, perhaps add a product to the cart but then abandon it altogether never to return.
Reduce Response Time
In order to improve your customer retention, you need to provide better customer service and that includes reducing response time.
If there is one thing that drives customers away it’s having to wait for days for a reply. No one likes to wait, plus, customers share their negative experiences with their friends and acquaintances.
One way of reducing response time is by implementing a chatbot to your platform. When compared to a real human agent, chatbots are capable of addressing all the inquiries much faster. They provide instant replies, they don’t get tired or impatient because they are programmed to be efficient and polite.
According to ServisBot, employing an army of bots is even better as you can handle different parts of customer engagement.
Treat Customers Like People
This is very important. Your customers are people and no matter how big your business becomes, you should never forget to treat them as such. They are individuals with needs and opinions and not merely there to drive your profit.
Customers value brands that engage with them at a human level. Find ways to show them that you value them by rewarding their loyalty. This can be done via discounts for loyal customers, thank you notes, and asking for feedback.
Just like they share negative experiences, customers also share positive ones. Be certain that they will recommend your product to their friends and family members if they like both the product and customer service.
Tailor Your Approach
All your customers are different and, therefore, require a different approach. In order to gain trust and retain your customers, you need to understand them.
In order to understand them, you need to listen to what your customers say about you. Search for feedback, observe what they say in their comments, and never ignore customer complaints and queries.
This will give you more information into what your customers need and want, and how to approach them differently.
Don’t Underestimate the Power of Newsletter
A newsletter is one of the simplest ways to improve customer retention. It doesn’t cost a thing and you can even automate this task to alert all your customers about news and updates at once.
You may think that most people don’t really read these newsletters as they likely receive dozens of them, but your loyal customers will.
They serve the purpose to remind your customers of your brand. It’s also a great way to inform them of your new products or discounts.
Educate Your Customers
Apart from informing your customers, you should also strive to educate them. You should have something like a knowledge base where customers can seek answers before they reach out to you.
When they have a question about something, most people first search the answer online. They want a quick solution and they don’t want to wait for it. That is why you should strive to answer their most common questions. This saves both your time as well as theirs.
