Research shows that loyal customers are more likely to contribute to a company’s business than acquiring new ones. It is also much cheaper to retain customers than it is to get new ones; it is said that it costs 6-7 times to attract new customers than maintaining current ones. That is according to Bain & Company. Therefore, an app UI design looking to attract businesses for their app solution is better off focusing on fostering a long-term relationship with current clients than concentrating all their efforts on new territories.
The logic behind that is quite simple. Every year, should the retention rate increase, it leads to a steady number of both client base and profits. If your retention rate is low, even though you’re able to attract new customers, then it is likely that you won’t survive to beat competitors. For that reason, one needs to keep their customers engage and create a loyal following. Here are some valuable ways to do that.
- Show gratitude
Showing appreciation is a way of affirming one’s behavior. If a customer feels valued and that what they did (making the purchase or renewing a subscription) is appreciated, then they are likely to continued doing that very thing. There are many ways to say thanks. If it is physical store you can always tell the customer “Thank you, please to visit us again” and give similar messaging in an online store. Emails are equally effective in sending a message of gratitude. With that, you can follow through with more tangible ways to affirm your words.
- Give freebies
Whether it’s a coupon code, discount or offer, giving your customer more than they expect is an effective tool when it comes to customer retention. It doesn’t have to be an expensive item; you can share a complementary product for free or give a certain percentage off the total value of what you offer. These actions are a pleasant surprise, and coupled with a thank you note, your demographic will likely rope in their friends and family into your business. In the age of social media, those impressed with good customer experience are eager to share with the social circles how a business exceeded their expectation. From the new buyers you’re likely to acquire, chances of retention only go hire. When done right, new profits offset the initial cost of the freebie.
- Get feedback and act on it
Customers are likely to stick with your brand if they see you are committed to meeting their needs. To know how to meet them, gain feedback about the quality of the product or their customer experience. Depending on the feasibility, adopt the feedback and notify them accordingly. Apart from sending surveys on email, one of the ways you can adopt customer feedback is through reading comments left behind on your website or social sites. These will help you make improvements to the business and pay off in the long run as more buyers attain a sense of loyalty from a brand that shows it cares about them.
- Keep customers updated
Have regular buyers feeling like part of the family by sending them regular updates. That could be newsletters; latest events or product updates, offers and coupons- share anything they’d benefit from. Clients who feel kept in the loop will appreciate that you’re keen on sending useful information that does not necessarily have to result in a sale.
With email marketing and social media, continually test subject lines and phrases that are most effective. A-B testing and checking competitors’ methods, as well as past successes, assist in making the most effective messaging to appeal to your demographic.
- Shine a spotlight on them
Once in a while, share a story of a customer who stands out. Depending on your marketing mix, you could make a video testimonial, retweet something that catches your eye; that is anything that highlights a little about your clientele. You can consider partnering with causes or other entities that purchase your product and sharing information about them on your social channels. This “scratch your back I will scratch yours” is beneficial for your business in the long haul.
- Have a VIP program
Not all loyal customers are created equal. Your database should give you an indication of customers you’ve supported your brand the longest or make the most purchases. For these individuals or companies, consider giving them VIP treatment that includes special offers, loyalty points or even events tailored just for them. They are almost guaranteed to become lifelong customers and perhaps likely to encourage their circles to join the bandwagon.
- Form a community
Alternatively, a brand can foster customer retention by creating a society where those who use their products or services can share insight. That could take various forms; you could create a group or forum or create a hashtag where those wishing to share feedback or compliments can tag your business. Having individuals feel like they are part of something bigger than themselves increases their willingness to remain brand loyal.
Some businesses, especially those starting up or established, tend to focus too much on acquiring new customers that they forget those who help them pay rent and keep the lights on. While it is crucial to focus on expansion, do not ignore those who’ve been supporting your brand for an extended period.