Customer retention is one of the pillars that support the perpetuation of your business and brand in the market, that is, if you really want to have consistent results over the next few years, you will need to invest in keeping the customers you win.
Especially for companies that offer solutions on subscription plans or similar services, retaining customers should be one of your main goals. But of course, ecommerces, online stores and retail brands also don’t want to sell just once to their customers.
To help you master customer retention and identify different approaches to apply to your business, follow our content!
What is customer retention?
To begin with, customer retention or loyalty are terms that refer essentially to the same objective: to strengthen the relationship with its consumers so that there is recurrence in negotiations.
There are several factors and strategies involved in this process and it is important to recognize that there is no “magic formula” to retain customers – everything depends on your area of expertise and the results of the actions taken.
If your business sells a service that it charges in the form of a monthly subscription, you certainly want customers to remain active and paying forever.
And as we mentioned earlier, if you own an ecommerce or physical store, customer retention actions are meant to help you bring consumers back for new purchases.
In addition, customer loyalty is also directly related to CLV (Customer Lifetime Value, or customer lifetime value) of your business – this metric represents how much each consumer generates for your business during the period that relates to the brand.
Now that you know what it is, we can move on to how to retain your customers and establish a relationship of trust that will last.
1. Leverage customer service
So that customers do not buy from you only at specific times, such as when you offer special promotions on Black Friday or when you offer discounts throughout the year, it is important to recognize that the price of products is not the only factor related to your retention rate.
Customer service, when well worked, can be one of the biggest differentials of your business. He is even able to turn his own customers into brand promoters, that is, customers who refer their business to their acquaintances.
So be sure to check out our comprehensive guide on how to achieve customer service excellence and find out how to calculate your Net Promoter Score (NPS).
2. Manage the relationship
Managing each step of the customer relationship is also important to increase your customer retention rates.
For this, several companies already invest in CRM systems (Customer Relationship Management) – tools designed to help you structure your processes or create a sales funnel.
It is also possible to integrate the best CRM solutions into your service channels, such as online chat on your page – which increases the efficiency of the team and facilitates the monitoring of customer histories.
3. Create your loyalty program
As the name implies, loyalty programs are designed to offer benefits to customers who make recurring purchases.
There are several models of such programs that can impact your customer retention, such as:
Exclusive discounts for loyal customers on future purchases;
Points program that can be exchanged for gifts, products or even discounts on future purchases;
Credit card that offers installments or differentials on customer purchases;
Consider your area of expertise, as well as what your direct competitors present, and create your own loyalty program so that customers realize the added benefit of buying from you.
4. Offer differentials and exclusivity
In addition to loyalty programs, exclusivity is an aspect that also serves to leverage business.
Apple itself works especially on this factor to sell its products, even if they are more expensive and not always superior to the devices offered by the competition.
The modern consumer likes exclusivity and, if you can specialize in a specific niche and meet the needs of your target audience, this can be an excellent way to build loyalty.
5. Get closer to customers on social media
Social media offers an excellent channel to bring your brand closer to the target audience and, unlike what many entrepreneurs think, you don’t have to be Coca-Cola with the #shareacoke campaign to get results.
Study your customers, follow trends and hashtags related to your niche and find opportunities to engage potential customers.
This can also be done through comments in your publications or even accompanying mentions to your brand in a strategic way.
6. Use digital marketing to drive customer retention
Improving your customer retention involves a set of actions so that you can guarantee the best results. Among these, leverage your digital marketing tools.
Even if you offer a loyalty program, it’s important to shoot e-mail marketing and send reminders with CTAs (Call to Action) for customers to use their discount coupons before the expiration date or to redeem their points.
And of course, be sure to advertise and attract the attention of all customers in your base and followers of your business profiles on social networks whenever you launch a new loyalty campaign.
7. Organize your processes and offer quality
Before trying to start building customer loyalty, it will be necessary to pay attention to the customer satisfaction index in relation to your products and services. An index that can be closely monitored is the NPS (Net Promoter Score), a survey related to the chance of your customers indicating your brand to family and friends.
After all, if there is something wrong with your processes or if your product is not competitive, even the best loyalty program will not have the same potential to increase your customer retention rate.
Therefore, request feedback from your customer base, do post-sales and collect the opinions of your buyers.
In fact, this mere action of talking to your audience and giving voice to your opinions is already a differential in customer service that can help you win the trust of consumers and build a lasting relationship.
8. Be consistent and reliable
Finally, it is important to be consistent and entirely reliable. If a customer was satisfied with the service and product received on the first purchase, but your business was unable to offer the same experience on the second purchase, you will not be able to retain customers for long.
To exemplify, consider how many times you have heard a consumer complain that the food in a restaurant has lost its quality over time.
Do your best to prevent your own customers from saying things like, “it was good in the beginning, but now it is not.”
Increase customer retention immediately
Follow our tips and evaluate what you can do to retain people and bring them back to recurring purchases according to your niche market.
Now, if you already operate in the digital environment and present your products through the website of your digital agency, online store or SaaS, know that it is possible to boost your retention immediately.
Stop missing business opportunities as customers are leaving your page with questions and install Websites Are Us for free to chat with visitors in real time. With a professional online chat, your team will be able to approach customers and retain them on the page, which boosts your chances of conversion by 20%.
We wish you good sales and recurring business!