Customer-retention

What are the top 6 cost-effective customer retention strategies?

Retail

What are the top 6 cost-effective customer retention strategies?

If the customers are satisfied with the product or services a company offers, they will return to avail more. Because they trust the money they put into the company in exchange for high-quality services or products, they will talk about it and bring their friends and families along. 

But how to create customer retention tactics that keep the current customers happy, engaged, and satisfied for a longer time or maybe lifetime? What does customer retention anticipate? 

What is customer retention? 

Customer retention refers to the company’s expertise to convert customers into repeat clients and prevent them from shifting to other companies. Keeping the current buyers satisfied is more effective than attracting new customers. 

New customers may help grow the company’s revenue, but one needs to invest a lot. In contrast, customer retention loyalty can bring more new customers every day and turn them into repeat buyers without investing much. Once the customer trusts your services or products, they are most likely to spend more money. 

The most beneficial customer retention tactics enable a company to build a long-lasting relationship with their customers who will be loyal to their brand. According to Harvard Business Review, even a 5% customer retention can jump the company profit by 25% to 95%.

We have broken down the top 6 cost-effective customer retention strategies that will contribute to the company’s growth.

1. Customer Loyalty Program

A customer loyalty program is one of the best ways to entertain the current customer to keep coming back. The more they buy the products or avail the services, the more the customer should be rewarded. This will keep the customer happy and satisfied. One can even add-on a program where they invite their circle, and they can get a reward too. More rewards lead to more loyal customers. 

2. Keep Check on Customer Services 

While it is good to have a customer loyalty program, it is also important to always keep in check with the customer’s services. Inadequate services can often turn into customer churn, and the reputation of the business can be compromised. 

Churn meaning in business is when the percentage of customers stops buying the company products or availing the services due to poor customer services or competitors offering better price and services, etc. Getting customer churn analysis at the right time will help the business to drop.  

3. Email Marketing Strategy

A well-crafted email marketing is another best cost-effective strategy that helps a business connect with its customers to promote their products or services. Apart from its benefits in generating more sales, it also keeps the customer engaged with the brand. There are hundreds of email marketing templates to choose from for various products or services that serve the purpose. 

4. Constant Feedback 

It isn’t easy to improve any business if one doesn’t know how the customer feels about the services or products. One needs to be consistent in availing constant feedback from the customer. Invite the customer for the feedback survey every time they purchase. The system collects the information, analyzes the feedback, and accordingly acts on it. If there is an error with the products or services, act reasonably and make sure it shouldn’t repeat. 

5. Personal Notes on Special Occasions

Customer loyalty towards a brand creates customer retention. Therefore, nurturing your customer’s relation from time to time will definitely improve their trust, making a firm motivation offer. Sending them surprises on their birthdays or anniversaries with personal notes will definitely make a difference, and it will inspire them to leave great feedback. 

6. Customer Churn Prediction Using Machine Learning

Customer churn occurs when specific customers stop using the product or services from the company. Using machine learning for customer churn prediction helps a company work on business strategies in a competitive edge industry, assisting with company growth and customer retention. When the company applies churn production, machine learning helps analyze and predict customer behavior and brand. 

Final Thoughts

Majorly companies spent the majority of their capital money in marketing for customer acquisition with the primary goal of reaching more people. But with the evolving industry and consumer behavior, customer retention is the main goal one should be focusing on. According to the Marketing Metric, the success rate of selling a product or service to a new customer is around 5–20%, while the success rate of selling the same products to a repeated buyer is 60–70%. Therefore, customer retention is one of the essential pillars to running a flourishing business.