Customer retention is a measure of the loyalty of customers, basically, it determines the capacity of a business to keep its customers returning over a period of time. If your business has a high customer retention rate, it implies that a significant number of your customers are frequently choosing your offerings over any other.
Customer retention is 5- 25 times cheaper than acquiring new customers!
Retaining customers is all about keeping your customers engaged with your brand, service, or product so that they don’t lapse and churn. There are several customer retention tactics and strategies that businesses employ to motivate the return of customers.
However, today, we are going to focus on just 7 of them. As you start developing your customer retention plan, you will find that these 7 strategies will ensure the return of your customers.
If you intend to foster customer trust, you need to strategically emphasize every segment of the customer’s journey. In order to develop long-term relationships, you need to incorporate value and relevance into the customer experience. They can be as follows:
To create an effective loyalty program, the following 3 characteristics must be incorporated to convey much better ROI:
To successfully make your customers keep coming back to your business, your priority is to properly know what they like and how they can be motivated without the need of asking them.
Customer data such as customer service interactions, loyalty program data, and transaction histories will enable you to identify the interests of your customers. Collecting such data and mapping them will help you retain your customers.
In the age of technology, leverage marketing automation. There are several platforms out there, such as Adzooma, Markopolo.ai, and Madgicx, which can streamline the entire marketing process. One of the integral segments of this process is re-engaging with your customers.
Marketing automation that makes amazing use of Artificial Intelligence (AI) and Machine Learning (ML) can naturally keep track of which customers have diverted. Then through personally relevant content, marketing automation helps to reconnect with them.
In case you aren’t aware, Customer lifetime value (CLV) is an approximate value of the net profit contributed to your business’s future interactions with a particular customer.
If you have a thorough understanding of CLV, you can switch from a short-term business strategy focused on the profit of the next quarter to a long-term tactic that specifically values ongoing customer relationships.
Calculating CLV is pretty simple. All you need to do is subtract the amount spent on acquiring and retaining a certain customer from the total amount of revenue that customer helps generate.
There are certain things your customers like. Maybe some of them are into arts and crafts, perhaps, some of them are into comic books or movies. If you intend to market offers and messages, personalize them in order to make them more relevant to your customers.
The following 3 stages are the key to mastering the power of personalization:
Stage 1 - Macro Segmentation: Market offerings to your customers in large segments, dividing them by factors such as demographics and psychographics.
Stage 2 - Micro Segmentation: Contrary to the last stage, market offering in smaller niche segments that combine demographic and behavioral data.
Stage 3 - Personalization: Making customers receive messaging and offers, which are individually personalized for them.
Thing is, deep down, there is a child inside all of us. And that child really loves games. The reason for this is gamification helps to motivate the competitive nature of customers and even brightens up the brain’s reward center.
Gamification further reinforces the customer retention program by involving awesome aspects such as badges, leaderboards, points, reward tiers, progress tracking, etc.
The fun fact about gamification is that it is integrated into any interactions your customers have with your business. It could be merely a purchase made, providing beneficial reviews, social sharing, and even trying out newly introduced products.
We hope these tips help you create a meaningful relationship with your customer!
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