Businesses invest a lot of time, effort and money in acquiring new customers. From building products and services to creating various marketing strategies, businesses continue to find ways to attract new customers and boost revenue. And although acquiring new customers is great for business, a common mistake that most businesses make is focusing solely on customer acquisition and neglecting customer retention.
In today’s article, we will discuss customer retention, its importance and highlight simple strategies that will help businesses not only build loyalty in existing customers but also long-lasting relationships.
What Are Customer Retention Strategies?
Shopify defines customer retention as the practice of increasing a business’s repeat customer rate and extracting additional value from those customers. By creating customer retention strategies, businesses are able to keep customers long-term and turn them into loyal and returning buyers.
The importance of creating customer retention strategies for a business cannot be downplayed as it offers a range of benefits for businesses. With the right customer retention strategies, businesses are able to maximize customer lifetime value, increase loyalty and boost revenue — A study shows that repeat customers generate 300% more revenue than first-time customers.
Here are a few customer retention strategies businesses can implement;
- Offer Excellent Customer Service: As simple as this may sound, many businesses continue to fail at providing great customer service to customers and this is why they continue to bleed customers. When customers buy your product and enjoy a seamless experience from the point of order to delivery of item(s), their return is invitable. Providing great customer service to new and returning clients is one of the simplest yet effective customer retention strategies as it doesn’t cost your business anything.
- Optimize Email Marketing: Today, thousands of businesses across the world utilize email marketing as it is one of the channels through which businesses can establish relationships with customers via personalized emails. Through email marketing, businesses are able to engage, inform and make their brands memorable to their customer base. One of the ways through which email marketing contributes to customer retention is by giving businesses a platform through which they can nurture relationships with customers via promotional emails, compelling content or simply requesting a review of a product or service. By this, businesses are able to show that they are interested in building a relationship with their customers.
- Collect Customer Feedback and Suggestions: No one wants to patronize a brand that doesn’t take corrections and look for ways to make the customer purchase experience better and this is why collecting feedback and suggestions from customers to improve on your service is a simple way to retain customers in the long run. Feedbacks from customers can be gotten via live chat, emails, customer feedback surveys etc.
- Implement Customer Loyalty Programs: Another simple customer retention strategy businesses can implement is customer loyalty program. Salesforce defines customer loyalty programs as a marketing approach that recognizes and rewards customers who purchase or engage with a brand on a recurring basis. Giving discounts, rewards or other special incentives to returning customers is a simple way to retain them in the long run.
There you have it! Simple and low-cost strategies businesses can implement to turn one-time customers into loyal customers. While we provide a variety of business growth tips, we also make it easy for businesses to open corporate bank accounts without a trip to the bank.
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