5 Tips for Building a Good Customer Retention Strategy

By Dan Radak

No matter what kind of business you’re running, the majority of your revenue comes from a small number of customers who keep buying your products or services. However, most businesses out there concentrate on acquiring new customers and forget about their current ones. As a result, their loyal followers eventually leave them for their competitors. This is definitely something you don’t want to happen to you and coming up with a good customer retention strategy is a must. Still, if you’re new in the business world, you could probably use all the help you can get. That’s why we compiled a list of five tips that should help you build a good customer retention strategy.

Loyal Customer

Know who your loyal customers are

In order to build a good customer retention strategy, you first need to know who your most loyal customers are. Luckily, there are many ways you can determine this. All you need to do is make sure you keep data about every person who buys something for you. If you have a large database of your current customers, you can start segmenting your customers using demographic information such as age, location and gender. Other pieces of information you might want to add into the equation are your customers’ education and occupation. This will allow you to understand their buying behavior as much as possible from your point of view.

Have a customer loyalty program

If you don’t give your customers a reason to stick around, they might want to explore what your competitors have to offer. In order to prevent this from happening, you need to make sure you keep introducing new products or services they’ll want to invest in. Besides this, you need a good customer loyalty program that’s guaranteed to encourage them to come back. Basically, you should come up with a program that rewards the customers who keep returning to your business. Ideally, you’ll be able to offer them points which will eventually grant them a freebie or a discount. What’s so great about programs like this is that they make your customers feel special and connect with your brand even more.

Build a powerful brand

You can offer quality products or services but if you don’t have a powerful brand, retaining your customers isn’t going to be easy. And your brand isn’t just your business name and logo, it also includes everything from your social media voice to your marketing strategy. Luckily, you can use the information you’ve gathered about your customers and create a brand they’re going to like. However, building a powerful brand sounds a lot easier than it actually is and it’s recommended that you get help from experts who understand the local market. For example, if you’re based in Australia, you can think about turning to a branding agency from Melbourne.

Speak to your customers

Not so many customers will keep coming back unless you communicate with them on a regular basis. Luckily, in the age of the internet, this shouldn’t be difficult. You can create social media pages for your business and use them to communicate with your customers directly. Platforms such as Facebook, Instagram and Twitter can be used to post news about your company and content that might help your customers learn something new about your industry. Besides this, you might want to send your customers emails that provide them with news about your business. In order to make this easier, you can use email marketing automation tools.

Gelogis

Customer strategy

Keep track of the metrics

In the business world, things can change in a matter of seconds. What used to help you retain your current customers may just don’t work anymore and a shift in direction may sometimes be necessary. However, if you don’t keep track of your metrics, you simply won’t be able to identify the need for such a change. Therefore, it’s extremely important that you keep collecting data on customers who keep coming back. Data you might want to put some extra focus on includes customer retention rate, customer churn rate and customer lifetime value.

The bottom line

Having a good customer retention strategy is one of the key elements for growing your business. Follow the five tips we talked about earlier and fortifying the relationships with your customers will be a real piece of cake. And since there’s no one-size-fits-all strategy for retaining current customers, you’ll probably need to tailor your approach according to your industry and customer base.

 

About the author

Dan Radak is a marketing professional with eleven years of experience. He is a coauthor on several websites and a regular contributor to BizzMark Blog.

 

 

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