If your customer retention rate is low, then bringing it up should be your number one priority. Your business can only survive for so long by attracting first-time customers and letting them go afterwards.
Here are some strategies to help you increase your customer retention rate:
Find out why they’re leaving
The first step is always to find the source of the problem. If you can figure out why customers are leaving in the first place, then the rest of your job will be much easier.
To do this, you can send surveys to past customers, read your reviews, and see if your business was mentioned in any blogs. There might be a really obvious reason why customers aren’t coming back that you just aren’t seeing.
Prioritize your market segment over random customers
This strategy calls back to your lead generation campaign. In the business world, it’s hard to say “no” to a customer, and while you shouldn’t necessarily do that, you should definitely focus more on those in your market segment.
If someone outside your market segment is interested in your products, the right answer isn’t always to nurture the lead. These prospects sometimes cost more money than they’re worth and are less likely to return.
According to this recent Inc article, you should concentrate more on the customers you identified in your market segment:
“The right customer is one you are prepared to serve — in every sense. It is the one you are targeting — not the customer who is targeting you. It means distinguishing capability from strategy. Capability is what you can do; strategy is about what makes sense for you to do.”
These customers will find more utility in your products and services. They’re more likely to return because you designed the customer journey explicitly for them.
We’re not telling you to turn down someone’s business, but you should note that some leads are more valuable than others.
Make payment an easy process
Here’s a good one. Some people never return to a business because the payment process is too complicated.
Imagine that. You’ve done everything right from your product development to your lead nurturing strategy. Yet something as simple as your site navigation is holding customers back.
Try to minimize the number of links users have to click and the number of forms they have to fill in. Make payment as easy as picking a few options on a page and confirming the order.
Add new products and services
This strategy is more involved, but will raise your retention rate to elite levels if it’s already high. If customers are satisfied with your products and services but don’t need refill orders, then you should add new ones to your lineup.
They don’t have to be big or intricate. They can just be accessories that enhance the customer experience. A good example is Apple and their wide array of accessories for their main products (laptops, phones, etc.).
Some businesses have a hard time retaining customers because they can’t keep track of them. This is common for growing businesses that don’t have the technology to organize their leads and customers.
A simple solution here is to get customer relationship management software. CRM software is simple to use, so virtually all of your employees can have access to it.
The software stores all information regarding customers from their email preferences to their order history. This makes it easier for you to know who you’re dealing with and make a personalized offer to a returning customer.
A low customer retention rate is a somber signal in the business world. To talk more about customer retention, or anything else, contact us today.