How To Create A Retention Plan That WorksAug 12, 2021
You might have heard this statement before. It is cheaper to keep old customers than it is to find new ones. Especially in the e-commerce world where clicks and conversions are becoming more and more costly.
Think of the last time you looked for ways to entice customers to make a repeat purchase. If you haven’t reached out to current customers after a sale, then now is a great time to create a solid strategy for customer retention. Therefore, you need to create a retention plan that works and we’ll show you how to do it.
Defining Customer Retention
Customer retention is a collection of activities a company uses to augment the number of repeat buyers and to increase the profitability of their existing customers. Likewise, it allows you to provide and get more value from your existing customer base. You’ve worked very hard to get customers and you want them to stay with you. If acquisition creates a foundation of customers, then a retention program is about building customer relationships and maximizing revenue for each one.
So how do you create a retention strategy that keeps your current customers interested and happy? We’ll show you effective customer retention ideas that not only inspire loyalty but help grow your customer base as well.
Effective Customer Retention Ideas
- Onboarding Programs
Onboarding is a customer success function that educates new customers on how to use your product or service. Instead of self-learning, customers are taught by a brand representative who customizes the training based on their needs. Likewise, customers not only save time but also understand how your product can help make their goals a reality. It’s an effective retention strategy since it decreases churn with new customers. When customers are using your products for the first time, they can feel frustrated if they don’t know how to use it.
Emails can be used to build a relationship with your customers before and after an initial purchase. Remember, each message you send should enhance your customer’s experience. If it fails to do so, then you may lose them. Based on Shopify data from Black Cyber Monday, email has the highest conversion rate at 4.29%, followed by search in second. Therefore, email is a powerful conversion tool.
- Loyalty Programs
Loyalty programs are effective tools in increasing purchase frequency because they entice customers to buy more often so they can earn rewards. Furthermore, it becomes a profitable exchange for both you and your customers. They get more value each time they buy, and you earn from their repeat purchases.
- Customer Support System
A support system helps you communicate with customers and offer them the right level of support. Likewise, it helps both pre-and post-sale by allowing you, or a customer service staff, to effectively communicate with your customers. Create a live chat or a help desk tool so you can turn a customer inquiry into a sale or even a customer complaint into a solution, whether they come in on-site, via social media, or through email.
The best asset that your business has is your current customer base. These people already know your brand, buy your products, and they enjoy your service. Therefore, investing time and energy in enhancing their experience as opposed to always looking for new customers can be a powerful tool to increase your revenue.
Do you want to level up your customer retention program? Then book a free consultation with one of our customer retention experts here.
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