Are you seeing a lot of new customers downloading your mobile app and booking your services? Well, good for your business. But, what about your old customers? Are they purchasing from you or booking your services? Are you generating enough revenue from your old customers?
If not, you have reached a point where you need to refurbish your customer retention strategies. What are these strategies and why are they important?
What Do You Mean by Customer Retention?
The main goal of any customer retention strategy is to generate repeat business and build loyalty.
Depending on their size, goals, and other customer service plans, businesses may use one or many strategies to accomplish their customer retention targets.
Some of the proven customer retention strategies include email marketing, loyalty programs, customer feedback, and so on.
Do you know why customer retention is important for your business? Customer retention programs can help you sell your products/services at a 4X cheaper cost than acquiring new customers and selling them.
Besides that, here are a few more benefits of investing your time and money in developing a good customer retention strategy.
● Get more repeat business: by targeting existing customers, you can get repeat purchases from them that result in increased sales and revenues.
● Lower customer churn rate: churn rate is the rate at which customers stop buying, cancel their subscriptions, or stop renewing them over a given period of time. Thus, with a well-planned program, you can create lifetime value for your customers and provide them with higher satisfaction.
● Increased market share: you can retain your existing customers and stop them from purchasing the same product/service from your competitors.
● Get regular feedback: you can get constant feedback for your existing customers and using the collected information, you can fine-tune your products/services.
Customer Retention Strategies You Can Try
Here are the top customer retention strategies that you can use and improve your business. No matter if you are offering multiple on-demand services using a Gojek like App or selling beauty products via third-party apps, these strategies can help all!
So, without further ado, let’s begin.
Customer Service
In the business world, customer service is directly linked with revenue growth. With great customer service, you can learn what your customers are looking for. Moreover, it helps with strengthening your customer’s trust and loyalty, resulting in repeated purchases.
The three ways good customer service can help you drive more sales are:
● Word of mouth: say you offer brilliant on-demand services on your Gojek-like super app. People will talk about their experience, influencing others to try your app at least once.
● Encourages engagement: when businesses connect with customers directly, it boosts engagement. This gives your business an upper hand and simultaneously strengthens customer loyalty.
Email Marketing
Email marketing is one of the most effective, simple, and quick ways to reach out to existing customers and improve your retention rate.
However, to scale customer retention with email marketing, you can use the following tips:
● Send personalized messages to customers
● Send friendly reminders
● Let customers decide if they want to receive promotional emails or not.
● Create interactive and compelling content like blogs, interviews, case studies, etc.
● Run re-engagement email campaigns.
Simply put, use emails to nurture your relationship with your existing customers.
Customer Feedback
Gathering feedback is a critical part when it comes to improving customer retention. Well, you conduct surveys dedicated to customer retention feedback.
You can ask questions to your customers directly through your mobile app or via email. Here are a few sample questions you can ask:
● Did you like your shopping experience with us?
● How likely are you to recommend our product/service to a family member or friend?
Asking questions about your product or user experience will help you conduct a perfect customer retention feedback survey which in return will help you to:
● Understand your customers
● Identify what customers expect from you
● Create engaging content
● Improve product/service based on their feedback
● Get testimonials and reviews
In Conclusion:
Customer retention is surely a difficult task for businesses. But, it is as important as acquiring new customers. You can not only rule a bigger marketplace but also get the best insights and feedback from your long-term customers.
Try experimenting with different customer retention strategies and see what works best for you. Gradually, you can polish and improve them.