The manner in which a business is run is changing, as the environment is changing. The digital world today is quick, technological and even tumultuous.
While most of the businesses are doing whatever they can to match with the time and scale, they quite easily get distracted in the surrounding publicity of the emerging concepts of marketing, different software and the activity of the latest innovating start-ups.
Peter Ducker, a renowned management consultant, once said that marketing has two objectives – to generate new products and keep the customers.
Here are some of the best customer retention strategies by industry experts to keep your potential customer base intact.
1. Customer Onboarding:
The first and the foremost retention strategy is getting customer onboard. It is a simple method of attaining a new customer and ask them to utilize your product or service most simply to achieve the desired objectives.
A decent onboarding of the product will show the value to the customer about your service or product from the beginning. This will provide the customer with instant satisfaction for buying up your product or service. Most of the companies opt for the concept of self-service almost immediately, while other organizations go for the human interacted perspective. The aim is to make the customer contended and aroused and make it worthy for them to remain loyal to your product.
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2) Develop Customer Follow up Programs:
As per the report provided by Econsultancy, nearly 82% of the companies reached to an understanding that retention given to the customer is economical than shutting down a new customer.
Another research from KPMG states that retention among the customer is the driving force behind the revenue generated by the company.
According to the Pareto Principle, 20% of the database of your customer will produce 80% of the revenue for the company.
In addition to that, CRM software shows a great deal of value. Through the software, you can quickly generate the scale to help you recognize the customers who should get the most of your attention. This way, it will be convenient for you to efficiently use your time on the customers that need your attention and care the most.
3) Locate Customer Risks:
Majority of the companies lose their best customers. In most of the situations, a customer will not do any business either they are not happy with the product or because they didn’t get the attention you promised them.
Either way, it is quite vital to locate the customers that you believe will stop doing business with you as a process of your customer retention weekly, monthly and on a quarterly basis.
Research provided by Forrester states that it will cost five times more to get a different customer than to keep the prevailing one. Locating the customers who are risky is done in my different ways.
4) Follow Back to Customers:
The client experience board of the Luxury Institute states that every time a customer returns, there is a possibility that they would purchase a product or service again. After the first purchase is made, it is entirely possible that they will come back for more.
When they return to make another purchase the third time, the buying percentage increases remarkably. By the third time they are done purchasing, there is a high possibility that they will come back again to purchase.
It is believed that the best customers don’t usually come back to purchase themselves; they are needed to be reminded that your services and products are waiting for them. Following up on customers creates an impression to the client that your seller values you deeply, and for the sellers, it is an opportunity to increase their profit sales quickly.
5) Get Back the Lost Customers:
What’s the point of spending tons of money on new customers when you can easily get back the old ones?
When you plan on getting back to the old customer who stopped doing business with you, you are not supposed to be nervous around them in making mistakes. That customer had already lost his faith in you which is precisely why he stopped doing business with you. As a result of that, you are not left with other options but to get them back.
E.B White states that a mistake is just another excuse for doing things correctly. According to a book Customer Win back, there is a possibility of 20-40% to sell a product or service to the lost customer. The chance of selling to the new customer is only between 5-20%.
The marketing professor at Georgia State University, V. Kumar states that there are few steps in getting back the lost customer:
- The customers who are lost have the desire to purchase your product or service again enabling them the potential target for your product or service.
- They are already aware of your brand and its product and services. You will spend more time in selling them and less time informing them about your product.
- In modern technology, you can easily know how your customers are using your product or service for the first time. In this way, you can easily regulate which customers are potential, and you can target them later to generate revenue for the business.
By following these steps for the customers daily, you will be able to get back your lost customer easily. It is essential to reach out to them and give them the service they will never forget and come back again to purchase.