6 Customer Retention Strategies To Boost Your Customer Lifetime Value
The other day I came across this:
I already knew that businesses spend more time acquiring new customers than taking care of current ones, but I didn’t realize the scales were this much out of balance. Sure, customer acquisition is critical to growth, but loyal customers are the foundation of every successful business.
In this article, I will help you get back on track by providing 6 airtight strategies to increase customer retention.
1. Start a loyalty program
How many times have you been asked at checkout (online and offline) to sign up to their loyalty program to receive greater discounts?
Starbucks is a business that needs repeat business in order to stay survive, and as a result offer some great loyalty offers. And I don’t just say that because I go there every day (okay maybe I did):
Offering incentives to buy again encourages customers to stay loyal to your business and increase their customer lifetime value (CLV).
2. Take full advantage of social media
Fans who like or follow your social media accounts do so for a reason. You will find your most loyal customers on social media, and connecting with them even once will make their day. Aim to connect with at least one fan per day and by the end of year one you will have strengthened relationships with 365 customers.
Just ask them how their day is going or how they are finding your product, nothing spammy or markety – just be human.
Mashable revealed consumers feel brands listen to them on Facebook and feel more connected:
It’s time to start listening and responding.
3. Offer discounts to long lost customers
Discounts can be a great way to bring back customers who haven’t purchased for a long-time. I wouldn’t recommend offering discounts to all customers as profit margins may be small, and giving all customers 20% off on their next purchase may not be financially viable.
To use this strategy to maximum effect, offer a time-limit to your promotion to create a sense of urgency that compels old customers to take action now.
Here’s Winner Poker going above and beyond for one customer, giving them $50 to spend at their poker room along with other time-based promotions which they can activate.
4. Find your weaknesses and fix them
Get Satisfaction stated 68% of customers leave a business due to the lack of treatment received:
Often businesses are not aware of the things they are doing wrong, otherwise they would stop doing them.
There are a few ways to find your weaknesses, the first is to measure your customer service complaints, response times and resolved cases. Are they to the level you want? You could also send customers a survey asking how they rate the level of service after after each email or phone call. This works very well because if they are unhappy about anything, they will tell you.
Another option is to email customers who have not purchased within a specific time-frame and ask them why? Add a small voucher or unique special offer to get them to respond.
5. “Pick up the phone and start dialing” – The Wolf On Wall Street
The Information Age has literally taken the world by storm and the power of a phone call has been severely underestimated. Around 20% of people will open your emails while almost everybody will pick up their phone. A phone call adds a human touch to your customer retention strategy which is difficult with email marketing or social media.
Take Dell for example, they call their customers within the first month to ask how they are getting on with their product, and if they have any questions or problems. Dell’s strategy is not to up-sell further products but to ensure customers are happy.
The phone call reassures customers that if they do have a problem in the future, they have somewhere to turn.
When was the last time a business called you and didn’t try to sell anything? A courtesy call can go a long way to increasing customer retention.
6. Don’t neglect your list
There’s a good chance your customers rarely visit your website or shop unless they are in need or something. How will they know if you are running a flash sale or offering $20 off on all orders over $100? They won’t unless you email them.
Monetate found that email conversion rates for eCommerce stores beat search and social media:
The reason a lot of prospects sign up to your newsletter is because they want to be told about special offers and new products. Use the best email marketing practices to drive sales and increase your customer retention.
To further prove the power of email marketing, here’s the same Econsultancy report I linked to earlier revealing most businesses use email as their main channel to improve customer retention:
Spending the majority of your time and marketing budget on acquisition without paying attention to customer retention is like being on a sinking ship. Unless you find a way to fix the hole (keeping hold of customers), you will eventually sink.
To avoid your sink from shipping, follow these 6 tips and get your business to shore, trust me there’s plenty of riches to be found!
Founder of CrushCampaigns
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