Customer retention is arguably the most important aspect of marketing. If you can’t hold on to your customers, then what’s the point of spending money to find new ones? It’s like adding more water to a bucket that has a hole at the bottom.
You have to get to the solution of the problem. In this case, it means finding out why customers aren’t returning to your business and implementing a corresponding strategy to stop the bleeding. Here are a few ones you can try, depending on your particular problem.
Solve problems before they happen
Customers never like bad surprises. But if you can warn them in advance, then it minimizes the pain and gives the customer time to adjust.
This recent Customer Think article explains how this strategy can boost customer retention. According to the article, it’s a proactive way to solve problems before they happen, which makes for a better customer experience:
“Another strategy you can implement to bring up your customer retention rates is to implement anticipatory services throughout your company. Basically, these are things that you do to solve problems before they even happen. It’s being proactive, rather than reactionary whenever those problems do come up.”
The article mentions airlines that send texts and emails to warn passengers of upcoming delays. This is a good way to readjust someone’s expectations and let them down easy.
Use online marketing to connect with customers
Online marketing has hundreds of different purposes. In the context of customer retention, you can use it to create a channel of communication between your business and its customers.
If someone has a problem with your product or service, then they can send your business a private message on Facebook or Twitter. This is a fast and easy way to deal with unexpected problems.
Commit to it seriously
Although any business owner would agree that customer retention is essential, many of them don’t commit to it seriously enough. They want to improve it without actually spending time or money on it.
A CMO article reports the results of research on the matter. According to the research, most businesses don’t spend enough money on customer retention:
“The study, Why Customer Identity Matters for Great Customer Experiences, released by US-based CMO Club in collaboration with marketing tech company, Signal, found 61 per cent of global marketing leaders are unhappy with customer retention rates. But only 44 percent spend 30-50 percent of their budgets on retention and loyalty. After surveying 61 marketing executives, heads of marketing and CMOs, the report revealed CMOs are prioritizing customer acquisition efforts despite an urgent need to engage and retain the customers they work so hard to win.”
It’s like people who are upset that they don’t read more, but don’t do anything to change their daily routine to open up 20 minutes a day. If you want to retain more customers, then commit to it. It’s as simple as that.
Establish thought leadership in your industry
One way to hold on to customers is to convince them that you’re the leader in your respective industry. This way, if they want to get the job done, then they’ll trust you and only you.
You can establish thought leadership by creating high-quality original content, offering excellent customer service, and conducting research in relation to your product. It’s a multi-faceted approach that will depict your business as professional and elite.
Customer retention is everything, yet so many businesses don’t know how to approach it. After you identify what’s keeping customers from returning to your business, you can try out one of the strategies in this blog. To talk more about customer retention, or anything else, contact us today.