- What is retention of customers?
- What are the popular customer retention strategies in 2020?
- What is the best practice that suggests that you should offer discounts and free products?
We are in 2020 and still unable to figure out what’s right for our business and what isn’t. This is common to both small and large businesses. For any business to strive and stay ahead of others, leads, customers, and sales are the three vital components to ponder over. But out of these three, the biggest asset for any business is its customer.
However, most of the businesses seek ways to increase their sales rather than retaining their customers.
The following data will make you realize the importance of a customer to a business.
- 68% of sales come from existing customers.
- Data from Marketing Wizdom found that an average business loses 20% of customers annually due to unfriendly relationships.
There are two types of customers:
Loyal customers: the ones who are regular to a business.
Normal customers: the ones who just come, buy and leave.
Hence, your prime focus must be to convert a normal customer into a loyal one. But before that, understanding the retention meaning is crucial.
Trust me, retaining your customers is a key aspect of your and any business.
Just follow the below listed 10 customer retention factors and strategies and start seeing the results from day one.
Top 10 Tried & Tested Customer Retention Strategies In 2020
1. Offer surprises to your customers
Who doesn’t like surprises? And when it comes to customers, surprises take on a new dimension.
Believe us, your customer eagerly waits for surprises from you. Hence, offering them one that too without their knowledge is indeed a terrific thing. This will help with the retention of customers.
A company sent these handwritten messages to all its customers. Isn’t it so caring and sweet? This is one way to express your gratitude towards your customers. A simple surprise motivates customers to come back, and it’s highly likely that the same customer may bring more customers.
Hence, the best practice suggests that you should offer discounts and free products to your customers.
2. Build trust through relationships
If there is no trust between you and your customer, your business will die. Hence, you have to work hard to cultivate that trust.
While doing so, use the customer data to deliver value in your product. That way, they will always nod and accept your recommendation.
We all do this.
According to Forbes, using customer data is the best way to build trust with a customer.
Remember, if customers aren’t finding your business trustworthy, they may even shift to your competitor. There’s even a possibility that they might spread negative words about your business. You don’t want that to happen, right?
Hence, build trust and trust will build more customers out of the existing ones.
Stat: 83% of customers will recommend your brand to others if they trust you.
3. Leverage customer feedback surveys
When you’re running a business, customer surveys play a significant role in your success. Most of the businesses carry out customer feedback surveys. But only a quarter of them pay heed to them. As a result, they suffer huge losses in the business.
Although filling out a lengthy form is boring from the customer’s point of view, it’s equally useful for your business.
To make surveys a fascinating thing, start using email surveys. Look below for the reasons.
When a customer is given a chance to communicate with the brand, they express what they feel. This may not be of any use to them but is precious for you.
4. Develop a frequent communication calendar
A communication calendar lets you know when you have to interact with your customers.
Below is an example of the same.
A communication calendar carries a sequence of events, phone calls, special offers, and greetings notes which you will send to your customers using the software. This is what every big brand uses to create cheerful relationships with their customers.
Several online communication calendar tools allow you to send gift cards, greeting notes, and special offers to your customers occasionally.
5. Over-deliver on your promise
We at AppSierra believe that delivering a promise is more important than making one.
According to Business.com, an unhappy customer is likely to let out the negative experience he/she experienced with a brand to 20 others.
To avoid such a thing, remember that:
The following pie chart shows that 25% of businesses don’t meet their promises.
Hence, exceed your customer’s expectations by over-delivering on your promise.
6. Learn from the customer’s complaints
Via customer feedback surveys, a handful of customers will obviously complain. Don’t get furious. It’s their fundamental right to complain if they feel there’s a need to. This is because the customers who complain stay for longer, but only after a few improvements. Hence, they are loyal and your greatest asset.
Hence, take the customer’s complaints/feedback seriously and try to resolve them at the earliest.
7. Personalize your communications
In any business, personalization is the key. Although with technology, there are various tools for the same, there’s no need to use them. This is because getting into personal talks with your customers is the best way of personalization.
For example, banks use the technique of personalization. Therefore, you have to fill multiple forms to get a single thing done there.
The most interesting thing about personalization is that you can personalize anything. Emails, FAQ pages, and CS chats come under the list.
According to Capgemini, over 60% of customers find it engaging when a brand presents them with their previous purchase record. This ensures that the merchant, or brand is trustworthy.
8. Address your customer’s complaint on/before time
Effective customer service relies heavily on how quickly every complaint gets resolved.
Whenever you address a complaint, don’t label it as important or negligible at your end. If your customer has put forward its complaint, there’s a defect in your brand. And as an owner, you must get it correct.
For this, your customer care department needs to be well-trained, educated, and patient. Plus, try to resolve complaints from all the sources like emails, phone calls, letters, etc.
9. Use unbiased customer reviews and testimonials
While shopping online, we pay huge attention to the ratings and customer reviews. This helps us in making the best decision. The same holds true for a business.
Ratings, testimonials, and unbiased customer reviews are an important part of every customer retention strategy.
According to studies, 88% of customers said that negative reviews often manipulate their decisions.
Even while buying anything from a well-known brand, customers heavily rely on reviews and ratings. For them, the price is a secondary thing when compared to the reviews and ratings.
Hence, start using organic testimonials and unbiased customer reviews to retain your customers.
10. Measure Customer Lifetime Value (CLV)
CLV is an important indicator that shows the value of your customer over some time. It represents how valuable a customer is going to be in the future if retained. It helps with customers retention.
The best example of such a tool is customerlifetimevalue.co
Here’s how it works.
Enter the required details, press submits and get an average CLV.
These customer retention strategies are a must for every business, small or large and established or not. No one would like the business to stay grounded despite continuous efforts. Taking it to the top is important. For this, the best way is to retain the existing potential customers.
The above-mentioned strategies are highly beneficial for retention of customers. Hence, go ahead and try one for your business and tell us how it works out for you!