Top Customer Retention Strategies for 2020

Retaining your customers is extremely important for any business. As per research from Harvard Business School, a small 5 percent of increase in customer retention rates increases company profits by 25 percent to 95 percent. Many studies have also discovered that 68% of sales are from existing customers. Retaining your customers is a key element in your business. Converting prospects into customers is definitely hard, but the ultimate goal of any company is retention. Your loyal, returning customers are your best business asset. Marketing Wizdom found that due to lack of a cordial relationship an average business lost about 20% of customers annually.

Why is Customer Retention Important?

Focusing on customer retention pays rich dividends in the long run. • Lowest costs than acquiring new customers. Customer retention is cheaper than customer acquisition according to 82 percent of companies as per Econsultancy reports. • Loyal customers are 23 % more likely to continue business or spend more with you than average customers. This increases the revenue over time, right. • If your customer vouches for you on social media, word of mouth increases exponentially improving retention. In fact, close to 60 percent customers talk if they like a brand or business.

Customer Retention Strategies for 2020

rnBefore you go all guns blazing on getting new prospects, consider these research-backed customer retention strategies to keep your customers and grow your revenue. rnSurprise your Customers When it comes to customers, a valuable offer can surprise them. Some brands look to nurturing customers and improving their overall value. Even scientists say that surprise is good for the brain. A good useful surprise can make your customers feel valued and offer honest feedback about the product or service.

Set the Right Expectations

Customer expectations in 2020 are immense. As the world is grappling with the uncertainties of COVID-19, there are multiple aspects that need attention. Customer service is not limited to answering queries and redressing complaints. It goes beyond that- with the right customer expectations to create the best customer experience. As a marketing consultant said, “the first step to exceed customer expectations is to know them.”

Automation for Customer Engagement

Automation is making things simpler by allowing some routines to be handled by a software. Monitoring and keeping your customers aware of all aspects will keep the brand fresh in their minds. Marketing automation is popular and will boost your conversion rates. There is an increase in customer engagement through SMS, emails, or texts making your brand register better with the customers.

Improve KPIs around Customer Service

KPI means a key performance indicator which demonstrates how effectively objectives are being measured. Considered a roadmap, they will help you understand what future looks like for your business. A great customer service will be able to get critical information of customers. Lower response time, better conversion rates, and good engagement are key factors that will improve key performance indicators around customer service.

Customer Feedback Surveys

Surveys are powerful, quick ways to get customer insights, build customer engagement, and drive customers to your product or brand. As per Fluid survey university, email surveys have an average response rate of of 24.8%. Email surveys draw valid client interaction, get the right information from clients, and can revamp the entire targeting strategy. With customer feedback surveys, you can even get some feedback, so be prepared for that.

Frequent Communication Calendar

A communication calendar is one which will track your entire communication strategy, publishing, and promotion. It is basically a sequence of events which will keep the customer engaged. Say timely offers, sales, or pre-sales promotional measures. You can send cards, messages, and phone calls to customers to keep in touch with them periodically. Good communication is the bedrock for a strong customer relationship. To foster a lasting relationship, you need to update customers with latest news, deals, industry announcements, and product upgrades through a decided calendar.

Product Momentum

Create an excitement among customers about the product and show them your latest features. Let’s say in 2020 with the pandemic, customers want to reach out personally to their clients. Introduce your features that customers can use to do that. Create an interest among them to be able to accomplish what they want with your tools. Telling customers about new products and services can bring a 30% increase in repurchasing. Your product does most of the heavy lifting for your customer retention.

Customer Education

Offer product onboarding tips to help customers understand the product more. Send them emails to get them started. Creating an online academy of resources can help them learn on their own. Customer education as we know is extremely important for customers to stick on. Having social media groups of your clients to offer quick information snippets or tool hacks can really help.

Personalised Journey

For any customer, unique and personalised solutions from brands can be really helpful. Adding customer recommendations based on products can help them stick on due to the added value. Personalising communication like content, emails, or FAQ pages can delight your customers. Personalisation with custom content can bring customers every stage down the funnel.

Learn from Customer Complaints

The customers who tell you want to improve form your greatest marketing asset. You will get to know the defects in your offerings, if any. Complaints show what your customers care about and what they expect. If you solve their issues, 70% of customers will keep in business with you. Once they are satisfied, they may write a testimonial about the positive customer support.

Bottom Line: Retaining Customers is a Balancing Act

rnThere are effective strategies to retain customer, but there are no quick shortcuts. You have to create a good business relationship with them and ensure their goals are met effectively. These retentions strategies coupled with great customer service can keep customers loyal. These are effectively long-term strategies which will propel growth. Remember, your customers will stay if they get the value, they signed up for in the first place. Staying relevant and abreast with latest market dynamics is necessary for any business, specially in 2020.