Customer retention — a company’s ability to keep customers coming back for more — indicates high-quality products, services, or brands. The higher the retention rate, the more satisfied are customers of a particular business.
And companies across the globe are striving to obtain the sky-high retention rates. But to do that, Thomas Ligor of New York says that businesses need to employ these loyalty and retention strategies to ensure consumers don’t switch to other names offering the same product or service.
Customer Feedback Mechanisms
Perhaps one of the major factors influencing customer retention is knowing how they feel. Understanding consumers’ sentiments and what they like or dislike allows businesses to make effective changes, refining their approach and ensuring they meet needs.
Ultimately, this requires a customer feedback loop — a strategy intended to continually improve and enhance a company’s product or service based on reviews, suggestions, and opinions.
There are four stages in a customer feedback loop:
- Collect consumer feedback through surveys, online reviews, social media monitoring, call data, live chat, and more.
- Analyze feedback to understand how to take action.
- Apply feedback and test to ensure it’s working.
- Close the loop by following up with consumers.
With all four steps in place, businesses have a better chance of retaining loyal customers.
Personalized Communication and Experiences
Evergage data suggests 99% of marketers say personalization has advanced customer relationships, with a whopping 78% stating it has an “extremely strong” impact.
This makes sense when considering that no two people are the same and, therefore, neither are two customers. In this modern world, a one-size-fits-all approach doesn’t work.
Instead, businesses should communicate with customers on a personal level and ensure all offerings remain relevant to the individual. The attentiveness will encourage them to stick around.
Loyalty Programs
Customer loyalty programs, sometimes called reward programs, are another effective customer retention strategy. They motivate people to keep buying from the same place.
There are many ways to implement such programs. But the points program is the most popular due to the ease of earning and redeeming it.
Typically, customers can redeem their points for money off their next purchase, giveaways, or discounted offerings. While they used to be managed by loyalty cards, many companies have switched to mobile apps, making it even easier.
Smooth Onboarding Processes
First impressions don’t just matter on a face-to-face personal level — they matter for consumers too. After the original excitement of purchasing a new product or service, customers often default to their initial experiences with the company; if it is good, they’ll stay.
A smooth onboarding process is one of the many keys to retaining customers, setting businesses up for generations of success. Companies should strive to make it personal, hands-on, and as frictionless as possible.
Surprise in The Best Way
Finally, adding seemingly spur-of-the-moment gifts to customers’ orders will exceed their expectations and increase the likelihood of them returning to purchase more.
It brings unexpected joy that customers won’t forget. And no, the gifts don’t need to be expensive or big — just something to show customers they’re buying from brands who care.