How to boost your customer retention rate
Every successful business is built on satisfied customers. Customer retention makes sense financially too –
- It is around 6 times costlier to find new customers than to retain old ones.
- A mere 5% increase in customer retention rates can boost your business profits anywhere between 25 to 95%
- A customer is nearly 4 times more likely to shift to your competitor if they have issues with your service rather than product/service cost.
Needless to say, business growth is directly proportional to retaining customers. So, how can you boost customer retention rate? Our experts from Perth explain.
How to boost your customer retention rate
Before we get to how you can improve your customer retention, let’s discuss some of the benefits of having a solid customer retention rate. The key reasons why higher customer retention contributes to a successful business are:
- Existing customers are more likely to refer your brand to their friends and relatives if they’re satisfied with your service.
- Repeat customers are more likely to spend a higher amount of money.
- Retaining existing customers saves you the time and effort needed for conversion etc.
Here are five ways to boost your customer retention rate
1. Understand why customers are leaving
To improve customer retention, you have to understand what is causing the dips in your customer retention rates. Why are people leaving instead of staying as loyal consumers? You can conduct surveys, send feedback emails or even run polls on your social media accounts. Once you learn the reasons, you’ll be able to tackle those obstacles and enhance the customer experience. Once you have found and fixed the issues, you can make use of price discounts or customer loyalty programs to get lost customers back. By doing so, you can earn the trust of the customers and increase the customer retention rate.
2. Make the buyer’s journey personalised
Making the shopper’s experience customised for them will let them know that you value them. Personalisation will also make it easier for them to navigate through your websites and apps. Auto-filling common details, displaying “Welcome, [Name of the customer]”, notifying the customers about deals and coupons for items they were searching for etc., will encourage visitors to interact more with your brand.
3. Take steps to improve customer relationships
Many customers stop using a company’s services when they feel like another cog in the big, money-making machine. How can you stop them from feeling that way? By establishing a customer loyalty program. Studies say that the amount of business a customer does with you increases up to 54% when they are rewarded. Offer perks for shoppers who have been with you for a long time. You can provide them with additional products, discounts or even thank-you notes. Such practices will inspire repeat purchases and help maintain a steady customer retention rate.
4. Explore cross-selling and upselling strategies
You can make sure every customer completes check-out with more products using strategic cross-selling and upselling tactics. Cross-selling refers to the practice of encouraging customers to buy something extra in conjunction with the primary product they purchased. Upselling is a marketing tactic that makes the primary purchase more expensive by making the customers pay for an upgrade or premium as well. Offering free shipping for a specific shopping cart total, offering discounts when multiple products are bought together etc., are examples of such methods.
5. Content marketing
Experts guarantee that a well-executed content marketing strategy can do wonders for your customer retention. By creating the type of content customers expect from you and sharing it with them, you’ll be able to create a feeling of community among them. Starting a Social Media Group, conducting live sessions, offering helpful tips etc., can contribute to this. When you consistently put out fresh content and interact with your customers regularly, it makes them feel valued. So, don’t forget to make your social media accounts active and interactive.
Customer retention rates are crucial for any business. Converting new customers will be more time-consuming and expensive than gaining the trust of your existing customers. It is definitely worth investing more resources in customer loyalty programs if your retention rates are dipping. The five tips we’ve mentioned here will help you boost your customer retention, but don’t hesitate to contact us if you’re in need of more guidance. You can also email us at Contact us or email us at email@example.com. The Computing Australia Group offers customised solutions for all businesses around Perth.
Customer retention rate: Customer retention rate is the number of customers a company retains over a period of time presented in percentage.
Buyer’s journey: It is the process a buyer goes through to know about and complete the purchase of a product or service.