Keeping your customers loyal to your brand after their initial purchase is far more profitable for businesses than acquiring new customers, as organisations spend fewer resources on keeping existing customers. According to the Harvard Business Review, customer acquisition is anywhere between 5 and 25 times more expensive than customer retention.
But how do you prevent your existing customers from slipping through your fingers? Below we have seven customer retention strategies that actually work.
Prioritise your customer service
For many businesses, it’s not the products that make or break them, it’s the quality of customer service that they provide their clients. Customer service is a key aspect of ensuring customer retention, after all, if a customer isn’t happy with the service that you provided them, the chances are they’re going to take their business elsewhere in the future.
Research has shown that 82% of customers have left a company because of a bad customer service experience. Providing your customers with an excellent quality of service helps to increase customer loyalty and makes them more likely to recommend you to their friends and family.
In terms of customer retention, ensuring good customer service is key. Research has shown that 52% of consumers have purchased more from a company after having a positive customer service experience. Customer service is one of the most important aspects of building a long term relationship with your customers.
Create a customer loyalty program
Another extremely effective way of improving your customer retention rate is by having a customer loyalty program.
Loyalty programs work in two ways. Firstly, by giving your customers something back in return, you make them feel more valuable and that their custom is appreciated. Secondly, it encourages your customers to take action that benefits your business, such as buying more products.
Businesses that have a loyalty program in place enjoy a significant increase in customer retention rates. In fact, 77% of consumers say loyalty programs make them more likely to stay with brands. Not only are loyalty programs great for customer retention, but they also help with customer acquisition, making your organisation more attractive to potential customers.
PERX rewards provide a range of reward based marketing tools designed to improve your customer retention rates, as well as attracting new customers.
Offer discounts to new customers
Providing your new customers with a discount code that they can use on their next purchase will help to increase the chance of customers coming back to buy more items from your business.
Discounts can be in the form of percentages or specific amounts knocked off the price. This strategy is a great way to make customers feel as though you appreciate their custom and make them less likely to shop elsewhere.
Listen to your customers
It’s your customers that dictate what would cause them to remain loyal to your business, so make sure you listen to what they have to say.
Ask your customers for their honest opinion and any recommendations they may have on how you can improve the experience for them. It’s also a good idea that you pay attention to what is being said about your brand or products on social media.
By keeping an eye on what’s being said online, and listening to your customer’s feedback, you’ll be able to resolve any issues and improve the level of service you offer your customers. Showing your customers that you value their opinion and acting on the recommendations they give will show them that you value their opinion and are committed to improving their experience, this, in turn, can improve customer retention.
Provide valuable content through email
Email marketing is one of the pillars of customer retention. In fact, it plays such an important role that, if you don’t do this correctly, it can cause 23% of your existing customers to leave.
However, if you send emails with the right content at the right time, it can boost your customer retention, increase conversion rates, and generate more revenue.
There are a number of ways to achieve this. One way is to send your customers a thank you email for making their purchase along with some questions on how they are enjoying the product they bought. This helps to reinforce their decision to buy from you and makes your brand appear more approachable.
At PERX, we implement branded email marketing campaigns on your behalf to help ensure your customers get the most from our platform.
Engage with your customers on social media
Nowadays, social media plays a big part in helping businesses build more meaningful relationships with their customers.
Social media is a useful platform where you can nurture your customers so that they eventually become not just loyal customers, but even advocates of your brand. Being active on social media also enables you to increase your cust0mer engagement by responding to any queries and to keep an eye on what people are saying about your brand or products.
Allocate your efforts wisely
Not all of your one-time shoppers will become loyal customers regardless of how much effort you put into your customer retention strategy. In fact, only 20% of your total customers will convert into loyal, repeat purchasers.
That said, it’s important that you carefully direct your customer retention efforts towards those customers you observe that keep coming back to buy more from you.
It’s clear that customer retention is key for businesses, and by using some of the strategies above, you can enjoy significant increases in your customer retention rates.
PERX rewards provide a range of reward based marketing tools specifically designed to save your customers money on the day to day things they already buy. Through expanding your member benefits package and rewarding your customers, you’ll be able to build and maintain strong bonds with your existing customers, as well as attracting new ones.