You’ve heard a lot about customer retention strategies. How to analyze what pages your customers bounce off your website, to knowing how to keep them on your site, and building the right customer service team to help boost repeat custom. But what exactly is customer retention, and how can you use it to your advantage in 2018?
Customer retention is the measurement of how many times a customer returns to the same company to make repeat purchases over a certain length of time. On a day-to-day basis, you will likely implement your marketing tactics to win over these customers from thousands of similar businesses. This is a necessary process. After all, data has found that there can be a 95% increase in profitability when there is a 5% boost in customer retention.
You might have a great customer retention rate already, or you may be looking to work on improving that rate. Whatever the reason, it’s important to look at various marketing strategies that can help to improve customer retention.
Develop a Loyalty Program for Repeat Customers
Offering exclusive benefits to returning customers can boost customer retention. A study confirmed this, finding that 82.4% of customers said they would shop at stores more that offer some type of loyalty program. You can create a loyalty program that includes levels or tiers of repeat custom. VIP programs offering your buyers certain types of perks or discounts with each level reached will help encourage them to continue buying.
Making customers feel rewarded and appreciated for shopping at your business is important to keep them coming back. Giving incentives to them by offering them discounts, exclusive access to pre-sales, or admission to events you might host are important ways you can grow your customer retention rate. This will earn your company a lifetime of loyal customers.
Update your perks on a semi-annual or annual basis will keep your customers interested in reaching the next level of loyalty rewards. Developing a dedicated VIP area on your website where they can log in and track their progress is beneficial to keeping return shoppers. Tangible proof that they are working towards their next goal helps to keep the incentive going.
Sell Offline with Point-of-Sale Chip & Swipe Card Readers
One way in which businesses can lose repeat customers is by being unable to provide quick a point-of-sale (POS). Investing in a POS system in 2018 that will keep up with your sales both online and offline. Customers need a POS while they are shopping in a retail store, so they aren’t only relying on online purchases.
Some POS systems have the capacity to work powerfully, quickly, and securely offline to help boost your productivity and sales. A pocket-sized POS chip and swipe card reader is great for the omnichannel experience. Prepare to see your customer retention rate increased when you implement this tactic.
Share Reviews and Testimonials
Customers want to be heard by you, and your past shoppers’ experience. When you see a long, positive review on your website or social media profile, reach out to that customer and ask them a few further questions. You can report their story in the form of a case study or testimonial.
Next, place it on your website in a resources section. This will speak to other customers in a relatable way. By being able to read stories of how your products have helped other customers in the past, your retention rate will grow as people return to buy the same products.
Pushing content and reviews from your customers through your website and social media profiles will encourage others to shop with you. Incentivizing your customers by showcasing positive and productive reviews. This will encourage others to submit their pictures or reviews for mutual benefit.
Reach Out to Lost Customers
Losing a customer means losing profit. Asking your customer service team to reach out to customers who haven’t shopped in a while. The worst-case scenario is that they won’t respond. However, the best-case scenario is that they shop with you again. A risk worth taking.
Develop a good customer service team who represent your brand well. Ensure they know your brand’s many facets of crucial information. They will able to reach out to lost customers with rewards or offer to answer any unanswered questions.
Another way of finding out where your customers got lost in the sales funnel is by analyzing your analytics. Have an analytics tool, such as Google Analytics installed on your website. This means you know where your customers spend their time on your website, how long they spend on each page, and where they drop off.
Knowing where and when your customers are leaving your website can help you improve your online content and design. This will, in turn, improve your customer retention rate. Top tip: You can install Google Analytics on many CMS, such as WordPress, Joomla and Drupal.
Streamline Your Sales Experience
Your customers want the transaction and purchasing experience to be easy. And you want to make it easy for them. Customers are used to providing their personal information for the standard shipping and billing process in order to purchase products during the sales process. Don’t ask more of them.
It can be tempting to ask your customers to fill out a profile and subscribe to your newsletter during the purchasing process. However these questions can frustrate purchasers and actually discourage them. Set up a profile or login area on your website. This will allow your customers to click-through these questions when they want to, rather than requiring it during the transaction process. Think Amazon.
By utilizing and implementing these strategies you can increase customer retention in 2018. As stated above, provide incentives in the form of loyalty perks or features in your content. This will encourage your customers to return to you to make more purchases. Invest in a POS system to help improve transactions offline. And don’t forget to monitor all of this through your analytics tool of choice.
Once these strategies are in place, the customer’s experience will be seamless. Your business will see an improvement in customer retention, efficiency, and revenue.