“An old friend is better than two new ones and is equal to a new six when it comes to clients.”
Customer retention is a company’s ability to retain existing customers. For example, an Apple fan is unlikely to consider buying a Samsung smartphone with identical functionality, even if the price is much lower.
Finding new buyers is becoming more complicated and expensive today. According to eMarketer research, the cost of acquiring a new customer is 10 times higher than the cost of selling to an existing customer.
Customer retention rate helps a company know audience loyalty and customer service. Based on this metric, companies find ways to improve their service and increase their bottom line. For example, the Harvard Business Review found that a 5% increase in customer retention increases a company’s bottom line by 25% to 95%. To achieve these metrics, significant changes to the business model need to be made. To this matter, we have outlined different ways to retain customers and what benefits high CRR can bring to your business.
If you’ve already set up your customer retention system, don’t be afraid to try new things and see how well your chosen retention tools are working. The market is changing, so does the customers’ needs, and the solutions your customers were pleased with yesterday may work very poorly today. We’ve compiled an almost complete list of customer retention methods that can come in handy:
Use traditional customer retention tools!
1) Work with feedback
A bad experience with your service or customer support representatives is often the top reason customers switch to your competitors.
Take any negative feedback or complaint as momentum for further product improvement. If the client has left, ask for their overall experience feedback and ensure the right level of service and information to other clients.
2) Focus on simplicity, usability and reliability
The more reliable your service, the simpler and more logical it is, the more satisfied the client will be and the longer it will work with him. Ensure that the client can easily navigate the sections, find the information he needs, perform other actions and not worry about the stability of the service.
3) Freemium + free items
Let the customer experience the value of your product without purchasing it. Give them promos, special offers, discounts or provide a free high-quality product with limited functionality. This can be an effective way to attract customers who haven’t bought from you for a long time.
4) Customize the product
Allow the client to make changes to the product. For example, you can offer to create a unique design or add some extra features to it. The client will receive a unique product based on what matches their requirements, by which he will be less likely to switch to competitors with standard offers.
5) Simplify purchasing processes
The faster and easier the formal procedures are, the more likely the client will place an order with you. Offer the client to log in via social networks or create a user account after placing the first order. Simplify the password reminder procedure, set up autocomplete for standard fields like name, address, and more.
6) Take care of their safety
Make sure your existing and future clients can rely on you and feel safe. Use trustworthy and verified payment systems so that they don’t need to worry about the security of their credit card numbers and the risk of identity theft.
7) Develop the right customer support team
Hire people who will take care of the customer’s satisfaction and experience.
First of all, it is important to make sure your team has the perfect combination of knowledge, skills, personality and experience. You may incorporate a validated personality test to find the right match for your business during a screening process. With this, customer satisfaction and transaction accuracy can be both improved.
8) Enter omnichannel
Try to use those digital communication channels that your client considers most convenient and suitable for him. For these purposes, you can use social networks, messenger apps, email and other chat channels. If your client can connect with you directly through their favourite social platforms, it can be a huge plus and a compelling reason to work with you further.
9) Create content (newsletter, webinars, training materials)
Create quality content and help the client understand what possibilities your product offers. Talk about how a client can solve their problems through webinars, online courses, books, training articles and other materials. The customer needs to get the most out of your product. In addition, the client will then perceive you as an expert in this area, become more loyal and ask you for help when needed.
10) Develop a loyalty program
Give your customers a reason to come back again and again: offer special offers to loyalty program members, exclusive access to helpful content and events, additional discounts. Accumulation programs also work well since it is more profitable for the client to take advantage of your offer with an increased discount or partially pay off the accumulated bonuses.
