As we’re halfway through the year, entrepreneurs across the globe are preparing themselves to rise above the negative impact of COVID-19 and hoping to get a strategic jump on crucial business aspects such as customers.
It’s often perceived that gaining new customers is like hitting a home run. Although this notion is true, no business should just be focused on expanding their customer base; instead, they should make efforts to retain the existing ones.
Did you know it costs 5X as much to earn a new customer than it does to retain an existing one? The point is nothing beats the value of keeping the right customers. Customer retention is beneficial for the overall profitability of businesses:
- An existing customer who purchases often can increase your total transactions.
- An existing customer can suggest your services to others, hence bringing more sales through word-of-mouth.
Are you intrigued to learn how you can engage your customers for the long-haul? Check out these five actionable tips:
1. Design Personalized Offers Using the CRM
It is essential to know your customers because the more you know, the more personalized your sales approach can be. If you have deployed any customer relationship managment (CRM) system such as HubSpot, Salesforce, or Freshsales, you can instantly understand your customer’s buying history with you clearly, which would help design appropriate offers for them.
Whether it’s giving them a 20% discount on your service or sending a complimentary product bundle, this will ensure your business stays on top of the customer’s mind. At the end of the day, it’s all about making your customers feel understood and appreciated.
2. Recognize and Take Extra Care of VIP Customers
With your CRM system’s help, you can identify those customers who contribute a lot to your revenues. These customers are generally known as VIPs. There is no doubt you would not want to lose them and affect your profitability in the process.
The challenge is, how do you retain them? Don’t worry – with your CRM system’s help, create a list of these essential people, and follow up with them, offering incentives and rewards – anything to make them feel special.
3. Craft a Customer Loyalty Program
To strengthen your relationships with your customers, build a loyalty program to reward those who have repeatedly purchased from you. For instance, organize a prize draw wherein you automatically enter your top 15 customers. This enables them to win something big, so it’s an excellent way of thanking them for their loyalty.
Alternatively, deploy a bonus-point campaign wherein customers who recommend your offerings on their social media accounts are eligible for a generous reward. This not only drums up excitement among them but also enhances your brand visibility on social media.
Whatever loyalty program you decide to craft, keep it simple so your customers can participate easily.
4. Build a Personal Connection on Social Media
It doesn’t matter whether you’re a startup or an established business, social media has got to be an essential marketing element for your business. As of 2019, 79% of the U.S. population is on social media, highlighting massive potential for you to tap!
For starters, analyze the platforms where your customers are most active. If they spend most of their time on Twitter, create relevant content perfect for that channel. Conduct polls, post product/service videos, share testimonials (and tag the people who give them on Twitter), and solve issues promptly whenever they arise.
The stronger you connect with them, the likelier they are to purchase from you again. It’s all about going that extra mile to make your customers feel unique and valued!
5. Make Your Online Tribe
The newest marketing tactic being deployed by businesses involves creating an online community where your customers can pour their hearts out. Whether you do this on Facebook or LinkedIn, such a platform will enable you to connect with them personally.
Moreover, your customers will always be the first to know whenever you publish a new blog or launch a new service/product, further enhancing their sense of belonging.
However, the main idea is not to sell your offerings (which you must from time-to-time). Instead, talk about the problems or issues faced by everyday consumers in your industry. Such a tribe thrives when customers talk about their problems, and where you, as a business, get to give tailor-made resolutions.
Over to You
The best recipe for excellent customer retention is personalization. And if you invest your resources in understanding what every customer of yours wants, you’ll better predict their future requirements, thus increasing your chances of making a sale.
What is your favorite custom retention strategy? Do share it with me in the comments below.