Customer retention comes into the picture! Market leaders must consider improving customer retention to boost their ROI and business growth. Since strategy and execution go hand-in-hand, you must ace your CRM selection.
Are you wondering how to start? The guide outlines the ten strategies that convince customers to become loyal fans. In addition, we’ve also compiled why customer retention is a big deal. So, look no further, and put your nerd hat on to get started.
Customer Retention – What is it?
Customer Retention is a metric business often uses to measure customer loyalty and gauge success. This approach helps enterprises to stop customers from switching to a competitor. Marketers will then use this metric as a business strategy in customer relationship management and develop new plans to reduce customer churn.
Companies often implement effective strategies and sales CRM software for successful SMEs to boost customer retention. If employed appropriately, these strategies improve the customer experience while ensuring they remain loyal to your brand.
This metric provides organizations insight into their performance, and like several other things, it is also rooted in data. Retaining existing customers is a more cost-effective approach than acquiring new ones. If you can retains clients on board for the long haul, it indeed pays off.
Long-term customer retention definitely supports sustainable company growth while increasing the value of each sale. The longer the customer stays loyal, the more he spends on your brand.
Customer Retention Strategies
Companies must thoughtfully map out the best focus areas to improve customer retention. To give you a hand, we have broken down some valuable strategies that will help you inspire loyalty. Let’s find out.
1. Personalized Communication
Undoubtedly, customers feel frustrated and annoyed when they have to explain an issue repeatedly. Therefore, companies must use personalized communication strategies through email campaigns or SMS to make customers feel valued.
Give your support agents the tools to pull the customer information and avoid the customer explaining the story over and over again. Also, you should focus on the fact that no two customers have exact needs. Hence, avoid providing one-size-fits-all solutions.
Keep your solution personalized and relevant to each individual, so they’ll feel more inclined to continue business with you.
2. Customer Loyalty Programs
While you should focus on customers at risk of churn, it’s essential not to overlook your loyal fans in the process. After all, forgetting your loyal fan base on the verge of putting effort into those who don’t love your brand doesn’t seem fair.
Organize customer loyalty programs, either point-wise or tier-based, to reward loyal clients for their continued commitment. Such programs make your clients feel valued as they get more than just your product or service.
Use CRM software for successful SMEs to gather information about your customers and develop loyalty programs accordingly.
3. Strong Onboarding Experience
Retaining customers is not just about offering discounts or after-sale customer service. Rather, it is deeply impacted by your website’s first impression. The only thing that brings your customer back to your site again is their initial boarding experience.
Hence, do not make customer service hiccups, mishandle information, or false promises. While your business can quickly rectify these shortcomings, it still leaves a bitter taste in customers’ minds.
An exceptional onboarding experience goes beyond the quality of the service or product. It should also include the effectiveness of the onboarding program itself.
Your business should have well-timed workflows, such as thoughtful email triggers, self-service knowledge base access, follow-up messaging, and discount offers to entice first-time buyers.
4. Exceptional Customer Service
Out-of-the-box customer support is equally important to retain your loyal customers onboard. You need to spend time building a relationship with them, and it doesn’t have to be complicated.
Respond to their queries quickly, and don’t forget to schedule follow-up calls to show your care. Exceptional client service will foster a warm relationship to keep customers around.
Most companies face a challenging time meeting customer expectations. Hence, you should focus on closing the gap between clients and companies to retain more customers.
5. Maintain a Customer Communication Calendar
A company shouldn’t wait for customers to reach out. Rather, their support team should proactively communicate with clients to keep them engaged. Initiate a conversation through a friendly email and discount offer to re-establish your relationship with the customer.
Consider adopting a communication calendar to manage customer engagements while creating opportunities to upsell and cross-sell. The calendar helps you track the last time a customer has reached out. It makes it simple to offer proactive customer service, thus removing roadblocks.
6. Keep your Promises
Living up to your words is the ultimate sign of professionalism in business. Customers often discard your product or services if they notice false promises. Hence, be the man of your word, and keep your follow-up pledges to improve customer retention.
Utilize a scheduling feature in CRM software to schedule follow-up calls and emails in advance. Assign follow-up tasks to your team members and keep track of your appointments.
If you won’t be able to keep your promises on time, you’ll lose even the most loyal fanbase. Create follow-up diaries or whatever it takes, and fulfill your commitments within the deadline.
7. Customer Feedback and Reviews
In addition to loyalty programs and personalized interactions, feedback and reviews are vital in improving customer retention. They are essential for conceiving and executing a successful marketing campaign.
Customer feedbacks help you know the success and shortcomings of your current business strategy, so you can improve it accordingly. While you can utilize sales CRM for successful SMEs to review service execution, it’s still not better than obtaining real-time customer feedback.
Hence, motivate customers to share their valuable feedback and use them as an insight to develop different strategies. Give them a voice by conducting more surveys and asking questions that get to the heart of customer effort.
Finally, supplement surveys with feedback from the customer service team, as they are closest to clients and can identify common complaints. Remember that it’s your responsibility to turn unhappy customer complaints into resolutions.
Things can go wrong throughout the customer journey. Hence, don’t step back from owning these mistakes (even if your business isn’t to blame), and make every possible effort to bring smiles to those unhappy faces.
Taking ownership of what happened and giving a satisfactory resolution can build more goodwill with customers. Communicate with them and find a way out to make things right. Also, ensure them that they won’t face such a hassle ever again in the future.
8. Build Trust with your Customers
Don’t presume that your buyers trust you or your services just because they buy from you. Building trust isn’t a straightforward tactic that your brand can implement overnight.
It takes time and effort to build. Reliability is the key factor in building trust, and this is what your company should consistently deliver to clients. Follow through on your brand promises, which will positively impact how your customers perceive your brand.
Remember that trust is the fundamental element behind the customers’ decision to purchase. Hence, do not expect results overnight. Be calm and patient, and consistently deliver quality services for a favorable outcome.
9. Add Something Unique to your Menu
Differentiating yourself by offering the same products and services as your competitors is no easy feat. Hence, businesses should add something unique to their offerings to stand out from the crowd. And what’s best than solving critical customer pain?
No matter how good your competitors are performing, there must be something they are lacking, and you only have to focus on that area. Remember that people only buy what holds value; hence, eliminating bottlenecks is enough to retain your valuable customers.
Removing kinks in a workflow to make the process smooth in a way that no other brand can improve your customer retention rate.
10. Make the Return Process Easier
The return or unsubscription process can make or break your customer retention strategy. Hence, make your returns easier than ever to streamline the customer experience and encourage them to buy again.
Giving unsatisfactory returns make the customers irritated, and in turn, they leave your brand for good. Workaround this issue and create a policy to explain who qualifies for a return. Clarify all details upfront to avoid falling short of buyers’ expectations.
Retaining customers is one of the best options if you want your business to grow. Customer retention costs less than acquiring new customers, giving the revenue stream a rejuvenating shot.
But there’s a difference between random strategies and thoughtful mapping. Hence, you should focus on sensitive areas and lay out the best customer retention strategy to address the problem.