Nowadays, customer retention is so much more than just a matter of cost-effectiveness and profitability. In the ultra-competitive business environment of today, the ability to keep your customers loyal is nothing short of fundamental to your company's survival.
In general, around 75-80% of a company's sales come from existing customers. To some, this amount might seem quite staggering. In truth, it shouldn't come as any surprise at all. That is, when you consider just how much importance companies place on
Customer Retention Marketing strategies.
It might be useful at this stage to get a grasp of exactly what customer retention is all about. In essence, it consists of transforming first-time or occasional customers into long-term, faithful devotees. This conversion does not happen by chance; it is the culmination of extensive market research and a profound understanding of customer habits.
Most businesses believe that by analysing a customer's past and current behaviour, they are in the best possible position to predict their future habits. By studying the way a customer behaves, they can very quickly sense if the customer is about to take their business elsewhere. As such, they are in the best possible position to take action and ensure that the customer stays put.
Customers often cite a feeling of importance or belonging as one of the main reasons for staying loyal to a particular brand or company. They like to have a certain feeling of control over the choices they make. The best way for a company to achieve this is to offer the customer a range of promotions, from discounts and special offers to loyalty schemes and personalised correspondence. This encourages interaction, makes the customer feel important and increases the likelihood of long-term loyalty.
Another key factor in customer retention is the company's ability to listen and react to customer feedback. As an example, many supermarkets offer feedback forms to their customers and encourage them to make comments on how their shopping experience could be improved. If the customer fails to see a reaction to their comments, they probably won't be a customer for much longer. But if they really can see a positive change following their suggestions, customers feel that they are part of the company's decision making process and are much less likely to take their business elsewhere.
The inescapable reality is that even the most loyal customers will change their habits at some point. There is little you can do about that. But all the time they are your customers, you should strive to keep them as happy as possible and make sure they keep coming back for more.
