Customer Retention Strategies To Grow Your Business – Part 1
What’s better than acquiring one new customer?
It sounds like a trick question, but the answer isn’t “acquiring two customers.” It’s actually retaining an existing customer.
While there’s a certain allure that comes with capturing new customers, keeping customers coming back will continually result in a greater ROI — and it costs 5-25X less.
But how do you create a customer retention strategy that keeps your current customers engaged and happy?
We’ve broken down customer retention strategies that the biggest brands are currently using to boost retention. These are elements of any customer success team or marketer can take and test today:
It’s hard to improve your business if you don’t know how your customers feel about it. You need a process for obtaining customer feedback and sharing that information with the rest of your organization. This is where a customer feedback loop provides a system for collecting, analyzing, and distributing customer reviews and surveys.
There are a few ways to collect customer feedback. The most common way is with a survey like Net Promoter Score®, or you can ask customers to participate in user testing and focus groups. Using a few of these methods regularly should provide your team with ample and relevant customer feedback.
Once gathered, you should analyze your survey results by looking for trends in customer behavior and areas to enhance the user experience. Then, share this information with teams that will benefit from it most.
For example, send product reviews to engineers and development teams so they can address flaws in their design. Using this system, your business can efficiently address criticism and improve customer experience.
Give Them A Calendar
Even if your customers aren’t reaching out with feedback, your team should be proactive with its communication. If customers haven’t interacted with your brand for a while, you should reach out to them and re-establish your relationship. Consider adopting a communication calendar to manage customer engagements and create opportunities to upsell and cross-sell.
A communication calendar is a chart that keeps track of customer communication. It tells you the last time that a customer has reached out and alerts you when existing customers haven’t interacted with your brand. This makes it easy to launch promotional offers and proactive customer service features that remove roadblocks before customers know they’re there. For example, if a customer’s subscription is set to expire, you can send out an email letting them know they need to renew their account.
Onboarding is a customer success function that teaches new customers how to use your product or service. Rather than learning by themselves, customers are taught by a company representative who personalizes the training according to their needs. This way, customers not only save time but also understand how the product can help them achieve goals.
Onboarding is an effective customer retention tool because it prevents defection. When users are first working with your product, they may get frustrated if they don’t understand how to use it. Customers have deadlines and they can’t afford to spend time learning how to master your product. Onboarding ensures customers know how to utilize your products or services so they can complete their goals on time.
This is the first part of our two-part post on customer retention. Rember, retaining old customers and keeping them loyal to the business is as important as acquiring new customers. Read the second half of this right here.
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