Most billion-dollar companies attribute their success to customer loyalty. Yes, it is the secret sauce that no company boasts of, but silently enjoys behind all its brand’s pomp and splendour.
Believe it or not, customers today make or break a business. They are the most valuable asset a company can have and the worthiest investment it can make on.
Customer loyalty today influences every metric of a business, so much so that companies today set aside a part of their budget for customer loyalty programs to hold on to them.
Because loyal customers mean profitable customers. When you have repeat customers making frequent purchases and are ready to spend more on your products, your expenses are halved since they are cheaper to market to.
A good customer retention mechanism not only speaks of how successful a company is at acquiring new customers but also how successful it is at satisfying them.
It’s easy however to spin a rosy story about success and talk of profits. Truth is, winning a customer’s loyalty is a hard task and companies spend sleepless nights to come up with a winning formula.
Holding on to customers is a tricky spell. If cast right, you can mint gold.
In business, the reality is that once a prospect becomes a customer, a retention process begins. Companies start offering lucrative deals and services to its customers, even through upsell and cross-sell process to hook on to maximum customers as possible. Even after such a hard toil, some customers will ditch you for other businesses. But your efforts to attract their attention and bring them back to your business is what will define the success of your company.
Studies say that only a 5% increase in customer retention can increase a company’s revenue by 25-95%.
Let’s get into some more figures to get more convinced.
- A company has to burn 5X-25X more expenses to acquire a new customer than to retain an existing one.
- The ROI of the company can witness a spike of 25-95%.
So, how much does it cost to retain a lost customer?
Well, definitely less than the cost of acquiring a new one, since you are focusing on existing customers. It is generally seen that less than 10% of the B2B customers leave a brand in 12 months. So, the loss is generally low.
So how will you retain your customers?
Just delight them with your products, come up with new innovative ones and give them the best after-sales service. Done!!
To convince you further, here is a lowdown of some strategies to help you with customer retention.
- Put in case studies during the sales process: Warming up to customers properly should be the first goal after making initial contact with them. A friendly conversation will let both parties know how they will work together. As a second step, push some case studies, highlighting your company’s collaboration history with customers and how your products met their expectations. This will give a lot of assurance to the customer and they will be happier to enjoy the experience once again.
- Keep the expectations clear: Customers like to know how your products can deliver excellent results for them. So set clear expectations about your products and services. Let them understand how they will progress towards the goals, what after-sales services they can expect and how the relationship will pan out with time. This strategy will keep customers satisfied and keep the relationship smooth.
- Communicate results and share a roadmap: Customers will stay with you if they get good results from your product or service. So, it is imperative that you communicate results in a timely manner. Show them how you have increased leads for them and propelled their brand value to a new echelon. Be transparent about your activities, tell them about the opportunities that can be explored, and you will have that customer forever.
- Take feedback and act on them proactively: Feedback from a customer will give you more insights about the potency of your product than your ideas ever will. You won’t be able to retain a customer unless you know why they ditched you for a better one. Use a customer feedback tool to know about customer experience. It will help you address product issues better and prevent customers from taking the escape route.
- Build a customer loyalty program: The easiest way to hold on to a customer is to induct them into a customer loyalty program. Shower your customers with rewards, make them feel valued with loyalty coupons and first-rate delivery services. This will go a long way in fostering a good relationship with the company.
So, there you go! Are you ready to give your best for your customers and make them your true fans? Unlock loyalty points from your customers with these fool-proof retention strategies. And don’t lose your mind over some lost customers. Some will fall off for reasons beyond your control. What you must focus on is how to increase your customer retention rate. Cheers!