7 Effective Tips To Improve Customer Retention
What lies at the heart of every business is finding, targeting and obtaining customers. There are some entrepreneurs who think that convincing a customer to make first purchase is enough at their part. While, the fact is first time purchase is a beginning of relationship between a customer and a business/brand. For the continuous growth of business, companies have to convert first time customers into loyal customers. They have to give enough importance to improving customer retention rate. According to research conducted by Harvard Business School, 5% increase in customer retention leads to 25 to 95 increase in company’s profits.
Let’s first understand the concept of customer retention.
Customer retention is the action taken by an organization to prevent customers defecting to competitors.
It is to be noted that today there are plenty of options available to customers and most of them don’t make a purchase without reading an online review about a product or service. Therefore, in this competitive environment, it is quite difficult for an organization to retain the customers. Here are 7 effective ways companies can improve customer retention.
Offer great customer service
It is to be noted that customer retention and loyalty are directly linked to customer service and experience. Studies show that 68% of customers leave a brand because they are dissatisfied with the customer service they receive. Therefore, it is said that brands/companies should focus on providing excellent customer service.
Use freemium model
The freemium model is quite helpful in converting users into paying customers. Many successful companies such as Skype, Dropbox, Microsoft and others offer free trial of their services and products to let the customers know how much beneficial their product or service is. You can also gain customers’ trust by offering free trial of your products and services for limited period of time. Once you become successful in gaining customers’ trust, you can build a long lasting relationship with them.
Feedback form/Survey/follow-up marketing helps in customer retention
After a customer makes a purchase at your site/online store, ask him/her to fill a survey related to customer experience. Survey/feedback form is a great way to let the customers feel that you care about them and their opinion matters to you. By following customers’ recommendations, needs and choices stated in survey/feedback, you can improve your products and services and can make your customers happy and satisfied with your brand/organization. You must not forget here that a happy customer means a loyal customer that will not turn to your competitors.
Appreciate your customers
Customers love to feel valued. You can make both your new and loyal customers happy by sending them thank you notes, thank you gifts and discount offers. This tactic can really work well.
Strong employee loyalty can do wonders
It is to be noted that organizations that care for their employees, appreciate them, encourage them, respect them and provide them everything that they need to perform their duties well, enjoy a workforce that is ready to everything to do for the success of their company. Loyal employees put all their efforts to make customers happy and satisfied with the brand/company, which ultimately leads to customer retention.
Make a partnership with customers
Create forums such as customer advisory team and customer board and ask customers to participate in those forums. Ask customers to attend your organizations’ functions such as social outings. Give them a say in design of your service.
Offer simple payment method
Customers are irritated by complex payment methods. If the payment method is easy people like to make a purchase again and again. You can offer a great purchasing experience to customers with the help of payment technologies such PayPal and Google Wallet.