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In today’s world with increased competitors and better offers being offered over the horizon, it has become important to maintain the current customer count. A smart marketer realizes the value of retaining a customer, as retaining a customer is 5x cheaper than bringing a new customer on board.
Here we will go through 5 strategies for Customer Retention
It is one of the most important strategies for customer retention.
Scene 1: Imagine this scenario
You go to a store to pick up some groceries and while at the billing counter you engage in small talk with the cashier, but the cashier looks back at you with a bored expression painted across his face. This will instantly swallow all your positive energy. You walk out of the store disgusted.
Scene 2: Now, Imagine this
You go to a store to pick up some items and while at the cash counter, the cashier engages in small talk and asks how your day was and whether you had a pleasant shopping experience. In the end, he/ she will thank you for shopping at that particular store and will ask you to come again.
Now if you are to make a choice, which store will you go to?
I’m guessing the latter.
The Second store (Scenario 2) looked to establish a real relationship with the customer which is an important strategy to customer retention. While the first store (Scenario 1) tried to establish a transactional relationship and put no effort to build or establish a customer relationship.
You can bet on the fact that if Store A doesn’t change its policies soon, it will go out of business and will have hardships to customer retention.
An ideal way to maintain contact with your customers is through Email Marketing. Customer retention from Email marketing is one of the cheapest marketing collaterals and has an impressive 4400% ROI.
To engage with your customers and keep them informed you can either build up a database of contacts or target them by purchasing a customized list to effectively target and retain your customers.
Create Impressive Email Content and catchy subject lines and include proper CTA’s in your Emails to improve your Click-through rate. You can also additionally create VIP Memberships, content, and perks to keep the audience engaged and wanting more from the brand.
Imagine you and your friend are customers of two different large fashion labels.
Fashion label “A” regularly updates you on the upcoming offers and every mail is personalized with the required CTA’s and the products you’re interested in.
The other Fashion Label “B” addresses you as “Dear Customer” and occasionally sends emails that have some random clothing choices from either Christmas or Thanksgiving of last year in this current year.
As time passes which fashion label would go on to become more popular?
No Brownie points for guessing that!
It is the fashion label “A” as they continuously look to personalize their emails and they undertake A/B tests to see which kind of content entices your interest.
Must Read: 7 MUST-TRY CUSTOMER RETENTION TECHNIQUES
When you undertake Email Marketing you have to properly strategize what kind of content is suitable for what set of audience. Every person would like to receive personalized content in his/ her inbox. This can be identified using Big Data and Analytics which enables the data to be compiled and classified which helps put people in different brackets based on what their interests were.
Here tactics such as the A/B testing can be used to test the quality and the content of the emails. The Analytics report gives you in-depth insights which can be used to better your future Marketing Campaigns and add a further degree of personalization to your emails.
It always benefits when you have a community built around your brand. It helps engage in better dialogue with the end-users of your product which helps create a better rapport between the company and the consumer. A Community is also a great way to test out soft launches of various products that the company has in its pipeline as they can expect an honest and non –biased review from their side.
People are social animals and will generally buy products/ services if others are buying them too. It’s just basic human psychology. To put this strategy into use you need to build a community of people who are associated with your brand and will be effective brand advocates when asked to promote the brand. A common example of this is Nike and the community it has built around common people and athletes. The more engaged a community is the more people will want to join it.
Karen is a teenager who identifies with many makeup influencers. So when her favorite influencer teams up with a beauty brand and asks her to share it across social media for a better chance at winning the grand prize of a year’s worth of makeup and accessories. She eagerly informs her friends Janet, Kim, Paula, and Elizabeth.
Brands that effectively piggyback on social shares by their followers stand to gain significant social mentions and a higher chance of brand recognition.
Once you have a community of people in place who are in tune with your brand, the next step would be to piggyback on their social media platforms to bring your brand in front of a greater set audience. This strategy can succeed when you choose to incentivize the people who share your content on social media.
The process of Incentivisation need not always be monetary, it could be a discount coupon, a free subscription to your service, free home delivery, and so on as an effort to provide value to the people who are associated with your brand for a considerable amount of time.
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