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Customer Retention Strategies: How To Increase Business Profitability

  • Trebound
  • April 24, 2020

Customer Retention

Every business you witness will definitely have 3 goals in mind to achieve success. That is

Leads

Customers 

Sales

If you are trying to build a growing business you need to take care of your biggest assets i.e. your customers.

Sadly, businesses understand the importance of lead generation but when it comes to Customer Retention, either they aren’t paying attention or they are doing it the wrong way.

A landmark study in the Harvard Business Review found that increasing customer retention by 5% can lead to a whopping 25%-95% increase in revenue, and these numbers have since become the guiding light of customer success organizations.

Additionally, your current customers are some of your most promising users. They have already taken the effort of paying you and going through the onboarding process. You would be doing a mistake if you are not retaining them on your platform.

Let’s get started and understand how you can take your business to the next level by implementing these strategies-

1. Offer a valuable service

When it comes to nurturing your customers, present them with a valuable offer without their knowledge to create a sense of belongingness with your brand.

Your valuable offer can be something different than your actual service or product so that after receiving your offer they can trust your actual product. Surprising your customers will inspire them to leave honest feedback about your brand and make them feel part of something bigger.

Offer your customers free gift cards and discounts when they aren’t expecting it. This will definitely change the lens through which they see your business.

2. Segmentation of customers

Many times, the promotional offers you send to your customers won’t align with their needs and desires and your emails might end up in your customer’s spam folder.

The discounts and product recommendations you send to a 40-something housewife and mother of three may not be appropriate for an 18-year-old male fitness fanatic.

You may send your regular customers a buy-one-get-one offer. But the same may not appropriate for your premium customers. Obviously, you need to segment your customers effectively so you can give them more personalized customer service and offers.

Like Netflix collects a huge amount of data on customers to create hyper-personalized recommendations. It uses that data to help customers find their new favourite shows and to create award-winning original content that is exactly what customers want to see. By understanding customers and putting them first, Netflix can build on its knowledge and provide them with the entertainment they love.

3. Engaging through customer feedbacks

If you want to understand how your brand is perceived by the customer, you want to be using surveys as tools to know how they feel about your products or services. When customers are given the chance to express themselves, they reveal their minds and feelings about your brand.

In their complaints, you can catch their pain points and try to make their experience better by solving their issues and offering them in return a gift card so that they can happily engage in your brand whenever they want.

Warning: Don’t frown when your customers complain. Be patient enough to hear them out. Their feedback is all you need to scale from being an average business to a respected brand.

Remember that through feedback, you can re-engage a customer that’s about giving up on your brand.

4. Provide educational content to your customers

As your product and the market keeps on evolving the need to educate your customer's increases and due to competitors evolving you need to stand out and focus on creating customer engagement with your brand.

Train your new customers with educational emails. Show them step-by-step, how to use your product, the benefits, and BTS videos/ pictures. And nurture existing customers with loyalty programs.

If the content you are creating is useful for your customers, they would want to take the further call of buying your product/ service and you can go by convincing them how your product is different from other competitors.

5. Use transparent customer reviews and testimonials

Generally, customers are afraid to try your brand and will look for honest feedback from other people so that they can take the next step.

When it comes to purchasing products online, over 92% of people occasionally or regularly read reviews first.

When customers will read real customer testimonials, they would become to know about how your product actually is and its benefits and they will see themselves using it. They will automatically create trust, explain benefits, and speak for your brand eventually.

You might also like: 5 Tough Decisions Every Entrepreneur Will Inevitably Face

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