- Understand "why" a customer became your customer
- Set the highest standards for customer service
- It is about a relationship, so you need to constantly nurture it
- With every possible touchpoint, apply personalization
- Define, check and validate the customer expectations
- Value is something that needs to be delivered proactively from your side
- Improve your solutions and processes with the pulses from your customers
Being consistent with your customer retention goals
Once you have a clear goal of retaining customers, you can start to apply your strategy for customer retention, and be consistent with it. Whether it is sending targeted marketing email newsletters, promotions, sales, or any improvement in your services, you have to implement it and be consistent with it. When you see your customers as cherished guests, your business allies and partners, and ambassadors, you are likely to invest more into what goes into customer retention. Did you know a 5% increase in customer retention in marketing increases profits by 75 percent, and that’s true for many businesses?
Learn how your customers feel about your brand
As we have been emphasizing, being considerate and invoking an emotional connection with your customers is so important, if they don’t feel cherished and valued by your company, they will leave you sooner than later. It’s not only about lowering the price but how they feel about the product, does it bring any value, how is it solving their problems, how likable is the customer service, are few of the metrics you need to observe and calculate. Efficient customer service is a great tool to measure customer’s feedback. Customers like to search reviews online, so emphasize on the reviews customers leave for you.
Customer experience is everything
While value and quality of the product will always matter, it’s the role of the customer service that determines, whether you will have life-long customers, or not. We have previously mentioned in a blog that a trend in recent years show that consumers would even buy a rather expensive product if the customer service and experience is outclassing. By 2020, customer experience will be everything, and it is based on the current metrics that show 86% of buyers will always go back to a brand that offers a better customer experience. Nobody cares how beautiful your website is, and how amazing your product is if the customer experience is bad - nobody is returning!
Typical customer retention mistakes
When activating your retention programs to drive growth with your company, you should be aware of and avoid the following mistakes:
- You don't know that the customers struggle with some product or service elements
- You don't care if the customers need support with solving problems or struggles
- You are only reacting and not acting proactively
- You are (almost) never available for your customers' needs
KPI to measure customer retention
With setting up retention strategies, there is more than the retention rate as performance indicators. Check your customer with these KPI:
- Customer retention rate: It shows the percentage of customers your company has retained over a given time period. Retention rate is the reverse side of the churn rate, which shows the percentage of customers your company has lost over a specific period.
- Customer Lifetime Value: It is a prediction of the net profit attributed to the entire relationship with your customer.
- Net Promoter Score: It shows the loyalty of your customer relationships on a scale from -100 to +100.
- Repeat Customer Rate: It shows the purchases from repeat customers divided by all purchases from your business for a given date range.
Creating a better customer experience and increasing retention
Now it is clear that customer experience has to be the number 1 priority for customer retention, to be able to increase customer retention rate, have dedicated and passionate employees, who are willing to provide exceptional customer services. Companies like Uber provide exceptional customer service, it's business model has thrived on customer retention and due to great experiences, marketing through the word of mouth. People do connect and remember when they receive exceptional customer service, likewise, people never forget a horrible customer service experience. Responding to customer feedback is very important, replying positively even to negative answers matters, a lot.
Enhancing customer experience also involves the effort people have to put in while making a purchase, if your company has a complicated website or order placing system, consumers would be easily annoyed. Customers should be able to register their issues easily, if they are going from one representative to others, they would clearly be frustrated. Our stats show that 89 percent of customers don’t like waiting longer for the registration of their complaints.
The ease of placing orders, the ease of registering reactions of customer loyalty all should be taken into account. Have a look, how simple and easy it is to place an order on Amazon.
Monitoring and calculating customer satisfaction and retention
Now you have mastered the game of customer satisfaction, you need to monitor it and measure it, remember there are no hard and fast rules to follow, every company is different, but most businesses are customer-centric, especially B2C. By 2020, more and more businesses are shifting to artificial intelligence technology for customer service and retention, the best part of having AI technology is supplying a customer service 24/7 that doesn’t rely on current “mood” of the customer service provider. It will have answers to all their questions, while still maintaining a human touch.
The younger generation and the millennials give customer experience the highest priority; 72% say making a call to a customer rep rarely solves their issues. Calculating repeat customers, purchase frequency, the value of the orders, over a given period of time lets you calculate customer retention and satisfaction.
Get your customer retention running
As retention of customers is currently a much easier and cheaper way than acquiring new customers, you should master it to grow and make your company future able.
Do you want support with your customer retention? Get in touch with us