In today’s business environment, your company’s success largely depends on the customer’s happiness. Customers used to have only a few choices, and it is a lot different now.
It becomes harder to earn and retain their loyalty, and that is why once you bring someone into your brand ecosystem, to lose them is the last thing you want.
When a client is loyal to a company, they aren’t easily swayed by availability or price. They will instead pay more and ensure the same quality product they already know and love.
Customer retention will increase your clients’ lifetime value and boost your revenue. It will help you build fantastic relationships and avoid being just another website or an online store.
Why customer retention matters
Nobody ever wants to lose a customer, but how important is having a high customer retention rate? Customer retention is so much easier and cheaper than acquiring new clients.
According to statistics, onboarding a new buyer is between 5 times and 25 times more expensive than retaining a customer. With only a 5% increase in retention rates, you may grow your profits by 25 to 95 percent.
These data make a lot of sense. When you retain your customers at a high rate, you don’t need to expend so many resources on sales, marketing, customer training, and all other onboarding costs. Also, happy customers are becoming walking billboards for referrals.
High customer retention makes every running a business both efficient and cost-effective.
5 ways to improve customer retention
What does it take to go from an average retention rate to a high rate that will help your business grow? Here are five most effective tips: reward loyal customers, use AI to engage them, personalize the experience with CRM, provide excellent customer support, and motivate your employees to do their best.
1# Reward loyal customers
If a customer doesn’t feel appreciated, it takes one mistake or just a single “better opportunity” with a competitor for them to replace you. It is crucial not to take loyal customers for granted.
Rewarding loyalty may look like sending bonuses or some surprises when a customer makes their 10th order.
You might also consider sending bonus gifts at intervals, such as half a year and a year. Another great option is setting up a loyalty program.
Increase customer retention with a dedicated loyalty program
The concept of loyalty programs lies in motivating customers to buy more at your store. You can do this with the help of free shipping, discounts, bonus points that lower the product’s price with every new order.
Loyalty cards are one of the most progressive and most successful means of commerce rewards.
The simplicity of the loyalty card makes it one of the best performing ideas – a small card fits a wallet perfectly and enables customers to get extra bonuses for their purchases.
The card often contains fobs or stickers that display how many orders the client must make to get a free item.
2# Use Artificial Intelligence to engage and retain the most valuable customers
Online retail is a competitive field. Business owners are fighting for clients’ attention in every possible way: they offer unique products, a personalized approach, attractive prices, and more.
Artificial intelligence (AI) powered solutions are among the most effective tools to help you meet customer needs and, at the same time, increase sales.
How can you retain customers in a world where competition is vicious and customers are overwhelmed by so many product options to choose from?
The answer is – through intelligent customer engagement. Brands have realized that traditional methods work no more, and they need to understand current customer needs better.
Artificial intelligence is beneficial as it provides an intelligent and intuitive customer experience at every point of their customer journey.
You can drive customer loyalty with AI, but you need to:
- Build long-lasting relationships by making their lives easier
- Analyze customer data to improve products and offerings
- Listen to dissatisfied customers and address their concerns
- Handle large volumes of data
3# Personalised experience with CRM Data
If you want your company to grow, keeping existing customers has to be one of your primary goals.
Customer relationship management combines strategies, practices, and technologies that businesses use for managing and analyzing customer data and interactions throughout the customer lifecycle.
If you have the right retention strategy supported with CRM software that can do the heavy lifting for you, your business will stay safe and sound.
Customers are not just a source of profit
To build a strong relationship with consumers, you need to see them as something more than a source of profit. They are not numbers and letters with checkmarks on your screen – they are individuals, and today they demand a perfect service.
CRM data allows you to provide excellent service by personalizing every ad campaign, email, and call to action. Naturally, people are more engaged and interested if you refer to them by their name. They want to see products they really need, contrasted to just shoving purposeless ads down their inbox.
Moreover, engaged consumers will buy up 90% more often and spend around 60% more per transaction. Form this emotional connection with your company, and they will be five times more likely to purchase only with you.
4# Take your customer support to the next level
Just like any brand needs to streamline creative operations with their marketing team and designers, the same thing happens with streamlining things and improving your customer support team.
Business owners invest their time, resources, and efforts towards the growth of their business. Significantly during last year and a half situation raised the demand for online services. Customers expect everything to be flawless, ranging from user experience to the checkout process.
Use the right virtual assistant
As an e-commerce business owner, you know how crucial it is to provide customer satisfaction.
This is a time-consuming job that needs full attention, and this is why you should consider hiring a virtual assistant. The right virtual assistant needs to have customer service skills to be able to handle every task.
Virtual assistants can also be valuable members of your customer service team. Many of them already have customer service backgrounds, which makes it easier to move them to a chat or phone support role part or full-time as needed.
Online stores need to deal with delivering products to customers efficiently. The virtual assistant ensures every delivery is on time; if the product is available, they handle returns and provide full-time guidance and support.
5# The Integral link between a satisfied employee and customer retention
When creating a solid customer retention plan, take care of your employee satisfaction, or your project will fail.
Reward your employees, go with something big. Make your employees challenge their skillset; it can be a competition or some game.
There is a vital link between employees and customer retention.
The workforce is the backbone of your business. Without satisfied workers, you won’t be able to move an inch. Your online visibility, revenue generation, and everything that leads to success is linked to employee performance.
Keep in mind that employee and customer retention are linked, and try your best to take care of both.
Being competitive in today’s digital age is not easy. Consumers are constantly attacked with numerous clever ads trying to convince them to change a company or service. So without a robust customer retention strategy, it might work.
The good news is, if you have convinced a customer to already buy from you, the hard part is done. Give them good reasons to stay, and by implementing some of the strategies from above, you will surely succeed.
Author: Nina Petrov is a content marketing specialist, passionate about graphic design, content marketing, and the new generation of green and social businesses. She starts the day scrolling her digest on new digital trends while sipping a cup of coffee with milk and sugar. Her white little bunny tends to reply to your emails when she is on vacation.