Keeping in mind the old saying, “While you make new friends, never leave the old one”. Old is trust and loyalty which makes us stick to them even after the new ones comes in the picture. Applying the same rule, old customers play a significant role in the business, their fealty and trustworthiness contributes in the process of accomplishments.
While you are actually focusing over increasing sales and marketing your product for a better reach, do not lose sight over the customers you have earned so far! As the old ones can gradually spread the word of appreciation drawing more business to you. On the other part, customer retention is apparently not an easy to go task, it needs a deep analysis with an approach to keep them bonded.
Why are customer loyalty solutions important?
The average business loses around 20 percent of its customers annually, the reason being—failing to attend to customer relationships, whereas in some industries the percentage grows as high as 80 percent.
To understand it better, imagine a case of two businesses, where the first one on focusing over customer retention, retains 90 percent of its customers, whereas the other one retrains 80 percent. If both adds new customers at 20 percent per year, the first will straight away get 10 percent net growth in customers per year, while the other one will have none. Over a period of time the first firm which approximately double in terms of profit and the other one will experience no real growth.
Comparing both, the one retaining more customers is always at the profit!
How is customer retention a challenging task?
61% of retailers cite customer retention as their biggest obstacle. According to 58% of the respondents, they buy from the stores and brands whose loyalty programs they belong to at least once a month. While 64% of retailers say their loyalty or reward programs are the best way to connect with consumers. On an average, loyal customers are worth up to 10 times as much as their first purchase. It can be a challenge to keep the customers gripped for a long period of time.
Customer retention consequences also compound over time. Sometimes it benefits in unexpected ways which can result in long term profits and growth. There can be various strategies to keep them bonded.
1. Track the customer purchase
Check your customer’ s purchase history for a better idea. Gift coupons to them on the specific products they have purchased repeatedly or on the deals they await. Their order history will give you a brief about the choices and that in turn will make easier to offer them with special discounts. This can gradually increase your sale, as a customer which when provided with offers have a probability to purchase more and benefit your business.
2. Respond to every communication
As the E-Commerce industry is rising, the mediums of communication including E-Mail, twitter, facebook, other social media platforms and the classic telephone method, respond to every single communication initiated by the customer. Getting no replies for the queries or complaints is quite a lot frustrating. Appoint a social media executive and a team of customer care executives to get in touch with the customers personally. Regular follow ups and personal attention keep the customers gripped.
3. Keep the survey on
There is always something to improve, see what your customers need and how they need it. Follow up with them with the help of a survey form, check their needs, improve on that and give them a chance to choose you again.
4. Set up an exclusive VIP Club for high performing customers
It always delights a customer when they are felt special and given special attention, arrange exclusive sale preview or exclusive programs for the high performing customers. Inform the customers via mail or text message. Give the customers loyalty cards for instance the high performing customers can upgrade their membership cards from silver to gold and can get added with redeemable discount points. Market your offers in a better way to increase user engagement.
5. Wish them on their special days
It seems a bright idea if you give them extra attention or go an extra mile for customer satisfaction. Wish them on their special days, their Birthday, anniversary and other events which are in your records. Make special discount offers or exclusive deals for their birthdays. For Instance An App development company is giving their client special discounts in their Birthday month for developing his App, this makes a customer feel special and increase your sales.
Always find ways to retain the customers because nothing can benefit your business more than a satisfied customer.