Companies are striving to get new customers each day. Almost all marketing and sales efforts are set to catch more and more users. But, is it the most profitable way? Even though welcoming new customers means success, retaining the existing ones are a lot more affordable, profitable and engaging. Are you curious to learn 3 unique ways to increase customer retention rate? In this blog post, we will explain to you how to increase your customer retention.
What is Retention?
Let’s start with defining customer retention. Customer retention basically means the ability of a company to retain its customers over a period of time. You can also calculate customer retention, just use this formula:
Customer Retention Rate =
((# Customers at End of Period – # Customers Acquired During Period)) / # Customers at Start of Period)) X 100
Before dealing with numbers, one thing you should do is to focus on satisfying existing customers. Keeping them satisfied will definitely increase your customer retention rate since they won’t be willing to leave your brand. Even though having new customers with customer acquisition is important, you should never underestimate the value of customer retention in your business growth. To understand it better, you can read our piece on acquisition vs. retention here. There are statistical facts that show customer retention is more profitable, affordable and it is less time-consuming.
Why is customer retention so valuable? Keeping your customer retention high brings higher ROI (a 5% increase in customer retention increase company revenue by 25-95%) according to Harvard Business Review. Already existing customers buy more often and spend more than the newer customers. They are already familiar with your product or service which make them spend more money on your products and services. Also, acquiring a new customer is 5-25 times more expensive than to retain an existing one. Basically, you can spend less money and get more profit while satisfying your already existing customers. In the end, satisfied, loyal customers are more likely to refer their friends and family which will also bring in new customers for free.
Customer satisfaction starts with knowing your customers well, their needs, what they like and desire. In parallel with that, voicing their opinions and wishes in your content will make your customers even more loyal to your brand as they find something common between themselves and your brand objectives. You can also show them the process of before & after using your products/services. Following these steps, you can create an immense effect on their buyer behavior. One small reminder: don’t forget to use engaging keywords such as “free”, “instantly” and “new” in your content. These words are scientifically proven to attract the attention of your target audience.
3 Unique Ways to Increase Customer Retention Rate
Once you satisfy the needs and expectations of your customers, they become more interested in your brand. At this point, you need to think and strategize the ways to retain them. That’s why we prepared a list of 3 unique strategies to increase customer retention rate which will help you boost your customer retention rate. Engaging your audience with thought leadership, optimizing your time in this process and rewarding your customers will help you to keep your customers loyal to your brand. Let’s go into deeper into these 3 unique ways:
1. Engage Your Audience with Thought Leadership
Customers do enjoy receiving helpful recommendations and information on new products and services. You can keep your customers more interested in your product by posting educative and informative material via your company newsletter, blog, and social media platforms. Realizing that you have knowledge and experience in your industry, your customers will trust you more. You can benefit from thought leadership by giving detailed tutorials, product reviews or catchy how-to material.
2. Optimize Your Time
Time management is one of the necessary skills you need while growing your business. Once you start developing your unique product, growth can start taking off, however, satisfying customers and retaining them require a lot of time and effort. For this reason, you should optimize your time spent on customer retention strategies. This will affect your customer retention rate in a positive way. Mapping out a consistent customer experience and keeping a record of communication with your customers always help to organize your time better.
3. Reward Your Customers
Everyone loves to get rewards! Why not reward customers? You can reward your customers with plenty of products such as gift cards, mobile credits or discounts. One thing you need to keep in mind is that managing the rewarding process can be time-consuming as well. One way for this can be using online products and services to help you with. You should always pre-define your KPIs and plan the rewarding process with your marketing and sales team.
These 3 unique ways to increase customer intention rate are helpful to keep your customers satisfied and interested in your product or services. Do you want to focus on your core business rather than spending time on managing each and every step of customer retention? If you are looking for a way to optimize your loyalty process, Koomalooma offers online and mobile businesses an easy to implement and effortless to manage loyalty platform. You can reward your customers with points, optimize your time better and focus on your core business with Koomalooma.
Koomalooma is a coalition loyalty platform for mobile and web companies. Our platform is a completely managed solution which takes care of signing up the members, tracking the points, selecting the rewards, and delivering the rewards globally.
If you want to learn more about the platform please visit: http://business.koomalooma.com