How to Increase Customer Retention and Loyalty?
TSL Consulting Pvt. Ltd
#Did you know?
Improving customer retention, by as little as 5%, can increase your profits from 25% to 95%.
If there is anything that can be more important than gaining new customers for your business, it is making sure that the existing ones stay loyal to you. Customer loyalty can be fleeting especially in today’s world of digital marketing . 50% customers switch their allegiance to another business within a span of 5 years.
Retaining customers might sound like a Herculean task, but it is well worth the effort. 91% of consumers are more likely to purchase from a brand which recognizes and remembers them, as well as provide them with relevant offers.
Here is how you can set the seal on customer retention and loyalty –
#Data is Your Friend
Don’t let your customer be just another name in your company’s database. Analyze your data to gain insights on customer behavior and preferences. This will let you identify your most frequent and loyal purchasers, those who buy infrequently, those who are at a risk of leaving, those who have already left, and so on.
Target the risk customers and map out a plan to turn them around. You can ask customers who have discontinued your service about what you could have done differently and incorporate the feasible changes in your customer service.
#Don’t Set Great Expectations
What if your customers are expecting the results of your services within a few days, while in reality it will take a few months or longer? This apparent failure to deliver on your part can harm your standing in customers’ eyes. Be clear from the very start of your association about the nature and the time frame of the expected output to avoid this scenario.
#An Offer they can’t Refuse
Offer loyalty rewards and incentives to the customers who recommend your products to others. This will not only make the existing customers feel valued, but is also a great way to gain new customers!
#An Unforgettable Experience
A great user experience is often the key to customer retention. It could be anything from an aesthetic, easily navigable website to prompt and satisfactory response on customer queries.
#One Good Deed Deserves Another
Customer retention essentially hinges on making the customers feel good. This need not be limited only to the quality of your service. Knowing that your company is participating in causes for the good of the society promotes goodwill in your customers. Letting them know that every purchase from you will contribute towards the greater good make them keep returning to you.
Conclusion Retaining customers is just as important as gaining new ones. Gleaning insights from your database, setting clear expectations, providing a great user experience and exciting offers, are the best ways to keep your customers coming back to your brand. Apart from these ways, you can ensure customer retention through timely follow-up, offering subscriptions and memberships and using CRM software to automate your services.