Successful customer retention is a major sign of business health and it is closely related to the growing concept of customer success through a well-established customer service center.
It works simultaneously as a marketing strategy while also aligning the company’s vision as part of its strategic goals. Customer retention means you are focused on developing a long-term relationship with the client rather than extracting short-term, temporary transactions.
Previously, marketing strategy revolved around convincing a consumer to buy your product/service and realize that it is at least marginally different from the other alternatives available in the market. Now, marketing strategy must work on the entire customer purchase pattern and create consumer success—tangible rewards and benefits that the consumers will receive by making your company a long-term member of their consumption bundle.
This shift brings more challenges, but results in higher retention rates, lower costs of sales, and an improved bottom line.
It is crucial to understand that a customer retention strategy requires detailed study of successful consumers, their buying behavior, preferences, and disposable income. Top of FormThese customer retention strategies can vary from business to business. As a rule, it should be kept in mind that customer retention entails keeping the old customers with you, lowering exit rates, and increasing sales.
Let’s elaborate each of these concepts to help you formulate your own strategies for each step and retain customers successfully.
Keep Existing Customers Close to You:
A simple look around you can show you how expectations have changed and how an influx of choices has made consumption more complicated.
It is common for businesses to divide their customers into demographic profiles for setting marketing and sales goals. It is about time that these profiles are scrutinized to understand customers’ thought processes and buying patterns.
As customers are changing, your company should be able to keep up with their changed preferences to give them the choices and products they are looking for now. There can be a number of ways to retain your customers once you have outlined their preferences and are ready to meet their expectations.
Selling More and Often:
Brand Loyalty Programs can be introduced that are most likely to attract new and keep your existing customers coming back to you. They key factors here are features, designs, and quality you offer your customers. 66% consumers tend to stay loyal to a brand if they find features, quality, and design as per their changing demands.
Similarly, Coupons are a very effective and popular way of retaining customers. Offering coupons to your existing customers for their preferred item can motivate them to make an immediate purchase, especially after 30 months of association. This also gives them a feeling of personalized service, which further instills brand loyalty. In a study, 60% consumers agreed to Surprise Rewards being a major factor for their staying loyal to a brand.
Value Added Services or Cross Selling with a partner brand also keeps customers coming back to you. Data-sharing partnership is also a potential avenue for increasing customer retention by letting partner companies share data and collaborate for time, season, and location-specific offers.
Rebrand your business to meet customer expectations. As Richard Branson has very aptly said, do not just meet expectations of your clients but exceed them.
It is equally important for acquiring new customers as well as retaining existing customers that a business is rebranded. Rebranding helps you move with customer preferences, as mentioned earlier. It is evident that modern customers are always on the look-out for something fresh and new. Therefore, it is feasible to rebrand and accommodate existing customers to show them all new customer success to convince them to stay. Rebranding helps to overcome an outdated image of a company and helps in exceeding the expectations of your existing clients.
Where Is Customer Churn Taking Place and Why?
In connection to the above discussion, reviewing customer behavior and company-client relationships can give valuable insights for retaining customers. One important information is to know where the customer exits and why?
Monitoring customers’ online journey can tell you the exact point which disturbed the customer enough to withdraw from your company and move onto someone else for a purchase. It may be long delivery times or dodgy/outdated payment options. It can also be the outdated overall layout of your website and poor social media presence. Most importantly, customer churn can take place due to improper handling at the customer service center.
Revamping the Customer Service Center
For modern consumers, online presence, customer service and delivery service have to be top notch. A well maintained customer service center can be an answer to all three of these goals.
To build a successful, longer term client relationship, your company has to build an effective customer service team. You require a friendly, personable team that is agile, technically smart and is trained to show gratitude and courtesy to the customers. Agents should have product and policy knowledge and the ability to resolve issues satisfactorily. This also leads to the capacity of a customer service center to quickly respond to a query in the required language, take required actions immediately, document, and follow up.
A good CRM tool is also a vital investment to keep your relationship organized and documented. It can cover all channels of support. To keep customer engaged through your online presence and product lifecycle, reemphasizing their customer success is important. Influencers and arranging Q and A sessions can ensure a lot of engagement and build stronger relationships. A good customer advocacy program or creating online customer groups, webinars, and user group meetings are also some ways of bringing customers together.
Customer retention is a goal and strategy in itself. As the technology is advancing and nothing is inaccessible for a modern consumer, it is important that your business is able to deliver products and customer services that match the requirements and ideas of your customers. Targeting new customers improves revenue but keeping old customers intact helps in building company value and sustainable growth.