Businesses grow by acquiring new customers, but they thrive by keeping existing customers happy through customer retention. Customer retention is the process of turning a one-time buyer into a repeat customer. The goal of customer retention is to keep your existing customers. Returning customers are 50 percent more likely to purchase from you as compared to new customers. I see these stats all the time from analyzing towing company data. Retained customers also help reduce your marketing costs as word of mouth advertising drives more sales than paid advertising.
The goal and methods for retaining customers vary from one industry to another. However, here are some practical ways you can use to retain customers for your business.
Stay ahead of churn rates
The first step to retaining customers is knowing your churn rates. Churn rates will help you know how many customers are leaving your business and which ones have stopped buying from you. If you know your churn rates, you will anticipate changes accordingly. This will help you adjust your strategies to boost customer retention. You will also know if your customer retention strategies are working or not.
Offer superior products
You may use all tactics known for customer retention, but if your product sucks, customers will turn it away. Depending on the product or service you offer, ensure it stands above the competition. Work on product quality, labeling, design, and pricing, to ensure customers get value from your products. No customer will be willing to refer their friends and family to a product that gave them a bad experience.
Use CRM Software
Customer relationship management software supports and facilities customer retention by helping you track customer behavior over time. You can use the software to predict customer purchase patterns and behavior. Once you have a clear idea of customer purchase patterns, it will help you enact strategies and make appropriate adjustments accordingly.
Embrace Email Marketing
Once you have vital data that tells you when and why your customers are leaving., you will be in a better position to target them using email marketing. Email marketing presents an effective online strategy to create conversions. It can be integrated with CRMs to send targeted emails to customers who leave without making a purchase, or to those who stop buying.
The use of CRM and email marketing makes it very easy to add personalization to your messages. You will be able to handle each customer interaction uniquely. You can leverage the data you have to create unique content and baits that make former customers want to purchase from you again. Personalization will show your customers you care and value for them.
Improve customer satisfaction
The first step to improving customer satisfaction is by offering superior customer support. Excellent customer support will make a huge difference in the success of your business. You can take advantage of artificial intelligence applications and chatbots to keep your customers engaged. Have a dedicated line of customer support staff to handle all customer queries.