4 Proven Customer Retention Strategies
Customer retention is defined as the process of keeping current customers through various engaging efforts. The higher the customer retention, the more customers will start returning to your brand. The results of a survey conducted by Harvard Business School has revealed that a 5% increase in customer retention can increase an organization’s profit by 25% – 95%.
Both customer acquisition and retention are effective ways to increase the sales and profitability of the organization. However, compelling loyal consumers to make repeat purchases is quite easier and cheaper than grabbing new purchasers. The studies have shown that selling the product to the existing customers is much easier than to new customers.
The conversion rate of existing customers is between 60% to 70%, and new customers are 5% to 20%. This is because people prefer to buy products from familiar brands than from strangers. The other benefit of retaining customers is that old consumers are likely to spend more cash than new clients.
Are you also a business owner and in search of effective customer retention strategies? You are at the right place. Here we will discuss the 4 proven customer retention strategies that will surely thrive your business. But before proceeding, let us discuss the benefits and importance of Customer retention to your business in detail:
The conversion rate of existing customers is between 60% to 70%, and new customers are 5% to 20%. This is because people prefer to buy products from familiar brands than from strangers. The other benefit of retaining customers is that old consumers are likely to spend more cash than new clients.
Whether you are running an IT firm, healthcare department, commercial unit, or any other business, competition in every business has been increasing day by day. The competitors are always on the hunt to capture the customers of other enterprises. Good customer service will increase customer loyalty towards your business and eventually makes your organization stand out in the crowd.
This is the meat. The ultimate goal of a customer retention solution is to increase business revenue and profits via consumer engagement. Nobody can market your product and services better than satisfied customers. They communicate about your brand with their acquaintance and friends, which reduces your customer acquisition cost.
A strong brand image is vital to gain new purchasers and to decrease overall marketing costs. Brand image and customer retention go hand in hand. The stronger the brand image, the better will be the customer retaining and vice versa.
The consumers are the valuable treasure of a business, and to keep them, you need to understand their current as well as future needs. Customer retention solutions allow you to understand your customers’ likes and dislikes and help to formulate effective future plans.
The churn rate is the number of consumers or buyers who discontinue your services or have stopped purchasing your products. Be aware of your company’s churn rate; it will help you craft better future customer retention strategies. It is important to improve your churn rate if it’s not up to the mark. To maintain customer loyalty, you need to know the root cause of customer dissatisfaction. After identifying the problem, take essential steps to reduce the churn rate of your enterprise.
CRM (Customer Relationship Software) allows you to track the behavior of existing customers. This software gives you a clear idea about the purchase pattern and the preference of the potential buyers. Knowledge of customer behavior and purchasing habits helps you to understand their needs and create better customer retention.
Who doesn’t love surprises? Make your customers happy by showing your appreciation towards them through gifts and great discounts. Surprise gifts are a great way to show the clients how valuable and important they are for the company. This will result in higher customer retention.
Delivering consistently great customer support is another way to improve customer retention. Solve and respond to your customer’s queries instantly. You can improve your customer services by providing multiple communication channels and using AI tools like virtual assistants and chatbots
Fostering the existing clients is the best and cost-effective way to increase the profits of the business. Propelu4ward provides excellent customer retention and customer acquisition solutions for every type of enterprise. Contact us today to know more about our services!
