Entrepreneurs are hard working people. Most of what they do, they do it to delight their customers. But why aim to achieve this if not to see them come back for more? Most companies focus on acquisition more than customer retention, even though it can cost 7x more to acquire new customers. In fact, 65% of a company’s business comes from returning customers, while 80% of a company’s future profits depend on only 20% of its existing customer base.Numbers don’t lie – if you want your business to grow and succeed, you must learn how to retain customers. Influential brands are swearing by these effective marketing strategies to help them engage and re-engage their audiences. They don’t cost much, but they do require lots of commitment. Here’s how to use them to keep your customers satisfied over and over again:
Are you aware of your ideal buyer persona’s expectations, needs, and wants? Answering to these demands is crucial for building trust. While a lead might plunge into your funnel out of sheer curiosity, a customer will never stick around if you don’t deliver upon your promises. This calls for an exceptional post-sales care, which depends on providing value and nurturing relationships.
According to Aberdeen, companies with a well-crafted customer service approach boast a retention rate of whopping 92%. By under-promising and over-delivering, such approach delivers a post-sales service that customers can always rely on. Know who they are and what they want, and be there 24/7.
Personalize & Reengage
Staying consistent is the key to maintaining a relationship based on trust. This is what we call bare necessity. For anything more, take a hint from Jawbone. In order to show their care and appreciation, they send handwritten notes to their customers, making them feel a part of a welcoming community.
Jawbone’s gesture is a perfect example of how companies should stay in touch with their customers in order to make their experiences even more delightful. The trick lays in personalization, which shows that you pay personal attention to all customers. But before you can personalize, you must automate.
Develop a communication calendar and use marketing automation to manage your re-engagement strategies. They should include everything from “thank you” notes and follow-up phone calls to educational email newsletters and rewarding text messages. Create new content and keep it dripping.
Since Americans spend around 3 hours and 23 minutes on their mobile phones every day, mass text messaging is very important in retention marketing success. Statistically, it has 98% open and read rate, which is drastically higher compared to 22% of emails, 29% of Tweets and 12% of Facebook posts. Keep in mind that 70% of millennials show a stronger preference for mobile marketing. If you’re looking for a reliable SMS service provider, contact Textedly for a free consult.
Listen to Your Customers
Another example of effective marketing strategies for retention comes from Lexus Sweden, which builds trust through having open conversations with their customers where they listen. Their marketing manager explains that they use reviews rather than conventional marketing because “authentic customer commentary is more trustworthy”.
Since 85% of consumers trust authentic online reviews, letting your customers speak their minds can have long-term benefits on your retention strategy. Feel free to post unbiased customer feedback and testimonials even when they include complaints, but do address them to compensate and apologize.
It’s actually okay to have customers who complain – the alternative is seeing them bounce and churn without leaving a comment. Besides, you can learn a lot from listening to your customers, as honest feedback reveals what they care about and expect from you. Use that insight to adjust your approach.
Encourage & Incentivize
92% of consumers turn to people they know for referrals above any other source. Referral programs are double the incentive since they encourage customers to make a purchase and raise awareness through word-of-mouth. A company called MeUndies uses these programs as a card abandonment technique, thus covering customer acquisition, conversion, retargeting, and retention.
You get $20 for every friend you refer to MeUndies, while they get 20% off their first purchase. Additionally, if your friend adds something to the cart but doesn’t purchase it, you can use a “nudge” button to remind them about it. They get to keep an existing customer all while acquiring a new one.
An alternative to referrals is loyalty programs, which also retarget and incentivize old customers by offering them something special in return. For instance, you can motivate them to come back by giving them a discount on their third purchase or after a certain amount of money spent on your products.
Always Reward Loyalty
Some of the aforementioned marketing channels, namely email and SMS, can be used not only for discounts and special offers but also for rewarding customer loyalty. And when it comes to retention, nothing works better than a free surprise. It communicates commitment, gratitude, and appreciation.
If you set a discount for every third purchase, acknowledge every sixth with a freebie. Use email to remind your existing customers of how close they are to earning a free reward. Have your CRM base notify you in time for their birthday and send them a gift card via your SMS service provider. Rewards may be costly, but they sure pay off.
The customers you retain will not only keep boosting your ROI with each new purchase, but they will also share their positive experiences with their families and friends. People referred by loyal customers have a 37% higher retention rate themselves, which further increases your brand’s reach.
Want to know how to retain customers? Keep it in the family!
By using these effective marketing strategies and relying on your provider, you can outsource customer acquisition to your brand ambassadors. Satisfied customers will recommend you to others who will in no time become satisfied customers themselves. It’s up to you, however, to build that trust by reminding them that you care, listening to them, and rewarding them for their devotion.