Managing customer retention rates are very important for the growth and sustainability of any business. Customer retention deals with how well a company aims to keep its paying customers over a period of time. The purpose of any business is to make and keep a business – this is all that retention deals with. If a business has a low retention rate, it is doomed as customers will not express loyalty. The cost of retaining customers normally costs less than acquiring them.
There are various strategies a business can apply when looking forward to retaining its customers. Notable of these strategies include;
Stand for something
Customers have a higher chance to ignore a business or company that doesn’t stand for something. If you want to create real value for your company, you must work on your brand. To get loyal customers, you need to create real connections with them. You need to define what you stand for, and what sets your business ahead of others. You need to offer differentiated solutions.
Positive social proof
We are all social beings and as social beings, humans tend to focus their attention on the advice and reviews they get from others. A positive social proof such as testimonials presents a very effective strategy for getting people to listen to what you have to offer.
Use words they love to hear
Using words customers love to hear is a very powerful customer marketing and education strategy that can help your business. If customers do not enjoy your education, sales process, and marketing, they are most likely not going to do any business with you. Not all words are created equal – some encourage customers to buy more than others. Words such as Free, New and instantly have powerful effects when it comes to sales.
You need to deliver surprise reciprocity as well as delight. Reciprocity is an effective strategy that keeps your customers forever indebted to your business. Give customers some free gifts and show them some acts of kindness, and they will all want to be associated with your business. However, you should not overspend on delight. It can be costly to hand out many discounts and freebies. For that reason, you only need to embrace the art of creating reciprocity through small and thoughtful gestures.
You should not underestimate the power of thank you. There are companies such as Zappos that are well known for expressing gratitude their customers using handwritten snail mail. Thank you notes are very important in ensuring that a connection is created between your customers and your business.
There is no way you are going to attract and retain customers if you offer low-quality services. You will not be able to build customer loyalty without offering exceptional customer service. You need to accept that speed is very important and secondary to quality. You also need to know your customers. You need to understand that customers do not want to feel rushed or ignored. You also need to choose the right platforms in your service delivery to customers.