{"id":14372,"date":"2022-02-10T15:33:01","date_gmt":"2022-02-10T12:33:01","guid":{"rendered":"https:\/\/snov.io\/blog\/?p=14372"},"modified":"2024-09-26T17:52:04","modified_gmt":"2024-09-26T14:52:04","slug":"customer-retention-strategies","status":"publish","type":"post","link":"https:\/\/snov.io\/blog\/customer-retention-strategies\/","title":{"rendered":"7 Customer Retention Strategies That Bring Real Results"},"content":{"rendered":"

You might have noticed changes in your customers’ decision-making process, <\/span>buying behavior<\/span><\/a>, and their more critical approach to shopping. Such dramatic shifts signal that your consumers have reevaluated their values and purchasing mindsets.\u00a0<\/span><\/p>\n

But have YOU done the same?<\/span><\/p>\n

With this, you need to reconsider not only customer acquisition tactics but also pay more attention to their retention since it’s even more beneficial for you! As <\/span>Frederick Reichheld from Bain & Company<\/span> has determined, customer retention is <\/span>20%<\/b> cheaper than acquisition. Moreover, he’s not alone in this observation because <\/span>82%<\/b> of companies agree that it’s waaaay cheaper to retain than acquire.<\/span><\/p>\n

Let’s see how customer retention can be less backbreaking compared to acquisition and how you can apply it to boost your revenue in the new COVID-19 realities.<\/span><\/p>\n

\n

Outline:<\/p>\n

    \n
  • What is customer retention?<\/a><\/strong><\/li>\n
  • Top customer retention example<\/strong>s<\/a>\n
      \n
    • Develop a customer loyalty program<\/a><\/li>\n
    • Stay true to your values and promises<\/a><\/li>\n
    • Collect feedback<\/a><\/li>\n
    • Improve customer service<\/a><\/li>\n
    • Create onboarding programs<\/a><\/li>\n
    • Cultivate brand advocates<\/a><\/li>\n
    • Benefit from email marketing automation<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n

      What is customer retention?\u00a0<\/span><\/h2>\n

      Before jumping straight to the retention perks, let’s start with its definition.\u00a0<\/span><\/p>\n

      Customer retention<\/b> is a scope of various activities or strategies a company uses to minimize the churn rate and prevent customers from joining a competitor’s side. Its goal is to make your existing buyers continue purchasing products or services from you.\u00a0<\/span><\/p>\n

      According to <\/span>Forbes<\/span><\/a>, it’s easier to convert a repeat buyer into a loyal customer <\/span>with a 60-70% likelihood<\/b>. Meanwhile,<\/span> the chances of converting a new lead are 20%, at best. As you can see, it’s faster, cheaper, and takes less effort compared to acquisition.\u00a0<\/span><\/p>\n

      Besides, by increasing your customer retention rate <\/span>by just 5%<\/span>, <\/span>your profits can skyrocket by 25% to 95%.<\/b> It means you don’t need to be so stressed about attracting more new prospects anymore. Instead, focus on buyers who have already made one purchase from you. You have everything you need, just make good use of it!\u00a0<\/span><\/p>\n

      Tip from Snov.io:<\/b> It’s a common misconception to think customer retention starts after your client has purchased something from you. It’s not entirely correct. Customer retention starts right after their first contact with your company. For example, SaaS companies use retention and acquisition equally to promote and sell their services.\u00a0<\/span><\/i><\/span><\/p>\n

      To retain or not to retain? That is no longer the question you need to ask your sales team. Rather, ask yourself, which strategy to choose?\u00a0<\/span><\/p>\n

      How to build a customer retention strategy? Top customer retention examples<\/span><\/h2>\n

      A collection of well-planned tactics and initiatives a business applies to build and increase <\/span>customer loyalty<\/span><\/a> is called a <\/span>customer retention strategy<\/b>. How it’s shaped entirely depends on your business model and brand positioning.\u00a0<\/span><\/p>\n

      Let’s say it right away, a perfect formula to boost your customer retention in a day doesn’t exist. It will require some time to wade in, but the good news is you can start building on what you already have. Your brand positioning and values are the essential ingredients of your customer retention strategy because they show your focal points.<\/span><\/p>\n

      Another misconception is that having an excellent, in-demand service or product is the key to high acquisition and retention rates. In reality, it’s not enough because you need to complement it with strong marketing strategies, retention strategies, customer <\/span>targeting<\/span><\/a> strategies, and so on.\u00a0<\/span><\/p>\n

      The following examples of the must-have retention strategies are so simple and brilliant that it’s hard to resist not using them. Let’s check them out!<\/span><\/p>\n

      \"Customer<\/p>\n

      1. Develop a customer loyalty program<\/span><\/h3>\n

      You might think that retaining a bunch of customers using loyalty programs is an overused and outdated strategy. Wrong!\u00a0<\/span><\/p>\n

      Just recently, <\/span>Yotpo has asked 3,800<\/span><\/a> respondents across four different demographics (Gen Z, Millennials, Gen X, and Baby Boomers) in the US, UK, and Australia questions related to brand loyalty and discovered that it has increased because of COVID-19.\u00a0<\/span><\/p>\n

      Due to the lockdown hurdles, consumers’ behavior showed an inclination towards being more personal and emotionally engaged when buying from their favorite brands:<\/span><\/p>\n

      ‘Those willing to spend more on a brand if even cheaper options existed skyrocketed from 34.5% in 2019 to 56% in 2020.’<\/span><\/i><\/p><\/blockquote>\n

      It’s more than a mere transaction now because people yearn for a sense of security and stability. Over <\/span>70%<\/span> of consumers are more likely to recommend a brand if it has a good loyalty program and, during pandemic times, this number started to grow.\u00a0<\/span><\/p>\n

      By creating a loyalty program, you can keep your retention rate and revenue at the desired level. Remember that your loyalty program members can spend <\/span>12-18%<\/span> more per year than other customers. Also, recognizing your buyers’ input is a restatement and additional reminder of your values, promises, and agreements.\u00a0<\/span><\/p>\n

      Depending on your brand values and positioning, you can choose a combination of several loyalty programs that go well with your business type: points, tiers, paid programs, etc. And to get more inspiration and ideas about loyalty programs from top brands, we recommend watching this video from\u00a0<\/span>Learn with Shopify\u00a0<\/span><\/em>below:\u00a0<\/span><\/p>\n