Customer retention doesn’t have to be hard! Here are 5 expert customer retention strategies in 2020 you can use to create a loyal customer base.
Most businesses spend a significant amount of time reaching out to new customers and much less time on trying to keep them. Plenty of research has found that it is more difficult to find new customers than to retain current ones. It makes sense to focus on maintaining customer relationships.
Every business wants to know the secret to retain customers, but there are certain tried-and-true strategies that are known to work. If you are putting their needs first, engaging with them on a regular basis, getting feedback from them, and incorporating it to make improvements, you have the keys to creating a loyal customer base. Here are five customer retention strategies you need to apply.
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1. Put the customer’s needs first
Customers are smart and they know when you’re putting your own profits ahead of their needs. You need to start solving their problems first and your revenue will flow out of that.
Customers shouldn’t face any disappointment or confusion when they start using your products or services. For businesses that offer services at a recurring monthly or annual cost, having the best user onboarding upon sign-up is essential.
If customers need your expertise, they are likely to stick around.
- How-to videos and in-depth guides will help you to impress them with your expertise and they will start turning to you for advice.
- If you segment your customers into different groups with similar qualities, it’s possible to target them with information that’s most relevant to them.
- Offer self-serve resources: Most customers prefer to be able to find answers to simple questions on their own. You need to build out a knowledge base that they can easily access for answers to basic questions.
2. Use technology for a more personalized customer experience
By using software CRM, sales teams can get up to date insights and reporting so they can deliver a more personalized experience to every customer. Blitz Sales Software CRM helps businesses to manage every contact with an easy-to-use interface. It automates sending emails, scheduling reminder calls, and much more.
For certain businesses like SaaS or tech companies, it is very important to keep existing customers up to date with cutting-edge features and products in development. In-app messaging allows for segmented, timely announcements that convert better than email.
Today many businesses across the board use live chat tools on their websites. This helps to make sure answers are always available to any concerns or questions customers may have.
3. Create opportunities for customer feedback
You need to stay connected to your customers, and social media provides you with an opportunity to do so. This means more than just posting updates or photos.
You need to communicate regularly with your customers on their preferred channels and reach out all the time, not just when they have a problem. Constantly find out from customers whether there is anything you could be doing better.
- Create polls and ask open-ended questions to encourage customers to share their opinions.
- Use customer satisfaction surveys: Asking the right questions and running the survey in a place where it is easily accessible to customers will ensure you get relevant, useful feedback. If you have a customer app, you can run an in-app survey.
Once you’ve gathered information, organize it in a way that is easy to digest so you can incorporate what is relevant. If you know what matters most to your customers, you can improve your product or service and make them feel heard.
4. Improve customer service strategies
Customer service is a huge factor, and if you don’t provide the service customers need, it is very easy for them to leave you and go to a competitor with better service. An infographic by Customers That Stick shows that 82% of consumers in the U.S. stop doing business with a company due to poor customer experience. In most cases, they left due to rude or unknowledgeable staff, or they left because of issues not being resolved in a timely manner.
- Friendly and knowledgeable employees or customer service representatives are crucial for customer retention. Make sure employees have the necessary training.
- Speed up your response time: It is vital to monitor your response time. Customers today expect an almost-immediate response. Calculate your average response time and take steps to improve it.
- Publicly acknowledge and fix mistakes: You will inevitably make some mistakes but it is how you address them that matters. If you acknowledge a mistake and make an apology, customers will appreciate knowing you’re willing to do so.
5. Position yourself to over-deliver
There are many ways you can go the extra mile for your customers which will help to differentiate your company. Here are some ways to do so:
- Send a discount on the anniversary of someone’s first day as a customer.
- Thank your customers in an email note and let them know that you appreciate their business.
- A customer loyalty program provides a good way for B2B companies to engage with customers and motivate them to buy more. You can offer points for every purchase a discount for a second purchase or a free item for spending over a certain amount of money.
- A referral program can be an effective way to gain new customers and keep current customers happy if it is done the right way. When customers know they will receive a discount or free item on their next purchase, they are more likely to refer a friend and continue shopping with you.
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A final word
At the end of the day, it is much less expensive and easier to retain current customers than to try and acquire new ones. Every business is different and will require a different approach but applying and modifying the above strategies is sure to make a difference to customer retention.
Leon Collier is a blogger and academic writer from the UK who covers a wide variety of subjects. His rich experience of over a decade, natural flair for writing and high-class research ability make him one of the best writers in the business. He is currently working for essay writing service Australia.