5 ways to improve your customer retention
For some organisations, repeat customers are few and far between. Yet, it is easier to entice a customer to return to your business than continually find new customers. One study found, if a business can retain 5% of their customer base, they can increase profits by 25% to 95%.
So, what can you do to improve your customer retention?
Stimulate your customer
Offering discounts, promotions or actively pushing sales is an easy way to entice a customer to return.
Similarly, training your staff to educate customers on your products and services (and any associated sales and promotions) is a great way to deepen your relationship with your customers. Your customers will value the time your staff spend with them. Highly informed customers are more inclined to return for repeat service.
This includes positive and negative feedback. If you understand where your customers get frustrated with your brand, you may be able to make changes to improve their experience. For example, if your customers find your billing process challenging, they won’t go through with a purchase. Identify where they get frustrated, make a change to remove the obstacle and create an easier purchase environment.
It isn’t rocket science trying to learn what your customers want and what needs changing. Ask them. Send out a feedback form or provide the opportunity for feedback through your website or social media channels.
Build personal relationships
Customers are looking for brands to be more authentic and provide a personal touch. They don’t want to talk to an automated voice when they call or be fobbed off with an auto-reply email. They want transparency, great customer service, and a personal touch.
Building personal relationships with your customers helps build their trust in your brand. The personalised touch, like acknowledging their birthday, is a great way to show that you are connected with your customer. It isn’t hard to go the extra mile. For example, you can record a customer’s birthday on your database and send them a discount voucher every year. As this discount goes out on their birthday, it shows you perceive your customer as unique.
Another way to establish personal relationships with your customers is through experiential marketing, which we talk more about here. Experiential marketing focuses on providing a physical experience for your customers. This gives tangibility to your brand and helps customers to engage directly.
Start a loyalty program
The best way to ensure customers keep coming back is to give them a reason. Many cafes use loyalty cards where if you buy five coffees, for example, your sixth is free! Airlines also have loyalty programs through their frequent flyer point systems.
Through a loyalty program, you can record the favourite purchases of each customer. If you use this information to offer personalised discounts or even suggested purchases (like Netflix and Amazon do), this can assist your brand to look like they are trying to engage more personally with each customer. This technique goes a long way to further developing personal relationships.
Find your customers on social media
We don’t mean targeting individual customers, but focus on your target audience. If you can find out what your target market are engaging with on social media, then this can shape your marketing activities.
If you learn that your customer base are focused on sustainability, then you could commit to reducing the amount of plastic bags you use. This shows your target market that you are interested in things they care about. This means they are more likely to return to your brand to make a purchase, rather than find a competitor.
Customer retention is a powerful indicator of the success of your brand. Not only does it show that you care for your customers (and they care about you), but it also points to the potential for business longevity.
If you would like to improve your customer retention, Green Door Co can help. Contact us today.