Every experienced entrepreneur understands that the center of a business is a customer, not a product or service. Retaining the current customers is a key to general success and business growth. According to the research of Harvard Business School, a 5 percent increase in client retention produces over 25 percent increase in profit.
Consumers increasingly value the experience of interaction with companies. Personally, I need only one unsuccessful experience with the brand to change and based on Kolsky research, 67 percent of consumers do exactly the same thing. On the other hand, the more positive was the interaction with the brand, the more brightly this firm is fixed in my head as a quality supplier of goods or services. Your business must compete based on the experience of customers. I am not saying that you should completely abandon efforts to attract new customers, however, you just need to concentrate on existing customers. In this material, you will learn how to do it.
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Customer retention strategies that really work
To keep customers in a modern hypercompetitive business environment, you will need to prepare and master some tricks. It goes without saying that among the methods of customer retention there will not be such obvious items as “good service”, “product quality”, “individual approach”. These your business should have by default. Let’s move on to the methods of how to improve customer retention rates.
What is behind your brand
To achieve excellence in sales and service, you should position your company and your products in the heart and mind of your client. Emotional attachment of customers to brands significantly influences their decision to buy. What’s behind the brand is important for a customer. As a rule, loyalty is built by informing customers about the benefits of your products. They need to understand why buying your products makes them special. The most successful brands are very clear about what they offer their clients. Gillette – “The Best a Man Can Get”, L’Oreal – “Because you’re worth it”, “For everything else, there’s MasterCard”. It’s like with people who crazy about Apple products. Once having won the client’s heart, the brand gets a dedicated fan.
Create additional value
Consumers are attacked daily by dozens of offers and promotions. How to get customer’s attention and retain him/her in such a saturated information field? The creation of additional value, not directly related to the company’s products, is an important differentiating factor in conditions of high competition. For example, big brands of sportswear and footwear do not sell sneakers, they sell a way of life. The reason is simple – their customers are people who decided to lead a healthy lifestyle. They buy equipment, keep some diet for, and their enthusiasm fades very quickly. Companies support their customers in this new endeavor by giving advice, motivating and encouraging. Thus, creating real practical benefits is one of the best customer retention practices, as the company clearly differentiates from competitors and makes an army of loyal customers.
Proactive client service
No company is immune from failures and problems with the quality of service. The ability to prevent negative customer experience or make it less negative distinguishes the company-champion from outsiders and helps to increase retention rates.
- The airline provides early warning to customers about the delay in the flight, thereby preventing a tiring waiting at the airport and subsequent claims.
- The cellular communication subscriber receives apologies and bonuses for communication problems.
- The online store offers the customer free shipping on the next order if the goods were not in stock.
These examples illustrate how problems are solved at an early stage of their occurrence. When designing business processes it is important to cover various scenarios that may arise at this or that stage. The operative and proactive reaction of the company to the problem is the best way for working with negative client experience. And we remember that a satisfied customer is a loyal customer.
No customers – no sales, no sales – no business, no customer acquisition, and retention systems – no customers. The circle is closed. And most of the sales come from regular customers. Shift the focus of your business towards customer retention. Maximizing the value of each customer, you open up wide opportunities for the growth of your business, improve your competitiveness and boost sales.
About the author: Olga is an experienced content creator and marketer at Anadea, a software development company with a strong presence in international IT industry. She is a very curious person and loves everything that has to do with innovation and technology. Olga is in a permanent search of fresh ideas and interesting decisions at marketing.
3 Elements of Customer Retention Strategy