Data shows that the probability of selling to a current customer is almost 14 times higher than the likelihood of selling to someone new. Couple that with the increased costs of customer acquisition (which have risen by nearly 50% in the last quinquennium), and retention is more appealing than ever.
Customer retention — that is, the act of ensuring customers stay loyal to a brand — guarantees repeat purchases and prevents giving a fragment of the market share over to competitors. But to retain customers, brands must offer services or products with enough value for the costs. Otherwise, people will look elsewhere, especially in this day and age where choices surround everybody.
Errol Andam, founder of creative experiential marketing agency 10X10 StudioLab, says that to do this, businesses can implement the tried and tested strategies below.
Knowing the Customer
Without knowing who’s shopping, brands can’t retain their audiences. Every business decision starts with data, and customer retention is no different.
Access to first-party data ensures marketers can truly understand their customers. With this information in hand, they can augment it with third-party data (i.e., about their interests, hobbies, preferred vacation destinations, etc.) for an overall customer profile.
Once they gain a complete overview, crafting engaging, loyalty-inducing marketing materials becomes much easier.
Going All-Out with Omnichannel Support
The 2020 Omnichannel Statistics Report proved that omnichannel strategies received 287% higher purchase rates and 13% increased AOV compared to single-channel methods.
Alongside data, mapping the customer journey is where successful retention efforts begin. After that, it’s about connecting current consumers across each channel seamlessly — apps, websites, online, and offline.
Meeting the customer in this way rewards them with their currency of choice, helping them stay engaged and satisfied with the experience provided by the company.
Marketers taking the omnichannel route are moving beyond transactional discounts, offering personal experiences in their place.
Responding Rapidly to Satisfy Shoppers
When customers need support, they need it now. There’s nothing more frustrating than have to wait 24+ hours to get help, and the data backs this up.
Quick first replies equal higher customer satisfaction, with 73% of 2021 CX Trends Report respondents saying that speedy resolutions are key to a positive experience.
Even if the company can’t fix the issue right away, replying quickly puts them straight in the person’s good books. Customers are likely to wait if they know somebody is actively working to help them.
Appealing to Emotions
Consumers who feel emotionally connected to a brand are more valuable than those who are not. Sometimes, such customers can double their spending compared to people who are merely satisfied with the company!
Trust and authenticity are key here. According to The Drum, 81% of consumers say trust is imperative when deciding whether to purchase from a company.
Businesses decide to connect emotionally with their customers in a myriad of ways. Some of the most common are with surprise and delight rewards, anticipating their needs, engaging with people on social media, and improving customer service with real-time one-to-one communication.
In the fast-paced, often faceless world of today, brands who genuinely take an interest in their customers will be the ones that come out on top.
