Acquiring a new customer is up to 7 times more expensive than retaining an existing one. Despite this, 44% of companies focus their efforts new customers vs. 18% that focus on retention.
It seems like existing customers are taken for granted and left aside. But maybe it's time to rethink who we are marketing to as existing customers are up to 70% likely to repurchase.
Not bad huh?
Not to mention, loyal customers play a vital role towards the acquisition of new customers thanks to their powerful word of mouth.
As a result, customer retention is an imperative towards steady growth and works for us both ways. We keep our existing customers active, and in turn, they work for us to bring in new friendly faces.
Customer retention techniques are not the same as those used to gain a new customer. Focus shifts to relationship building.
Below we'll discuss some of the ways you can keep existing customers coming back for more while increasing your bottom line at a fraction of the cost.
1. Make them part of the family
Forget amazing customer service. Make them part of the family. Part of retaining customers is sharing the same values. Offering a product or service with which they are able to connect to on an emotional level is so powerful. Apart from creating loyalty, they’ll be eager to tell others about a brand that they feel is an extension of themselves.
This can be done by setting a lifestyle around your product or service.
Setting the scene and demographics for your brand helps people relate and aspire.
This emotional side brings customers onboard and they become more willing to repurchase from you when the time comes because your brand was able to become so much more than the sum of its parts.
2. Offer promotions
Promotions are a great way to drive repeat purchases and get your foot in the door. Customers who enjoyed your product the first time are more enticed to come back if they can get more of it at a discount.
Promotions can include lowered prices, bulk purchases, discounts upon second purchase, and free merchandise with purchase.
3. Create customer loyalty programs
Loyalty programs are a great way to get new customers to come back and reward existing customers for their repeat business.
Depending on your service offering, your loyalty program can include a point system that can be cashed in for prizes, cashback or discounts. Exclusive access to discounts, giveaways, and product releases.
You can also create a tier system where the customer is rewarded exponentially based on their consumption, encouraging repeat purchases in exchange for more privileges and discounts.
Loyalty programs are the gamification strategy of retaining customers as it becomes a game for customers to reach the next level in order to unlock greater benefits. And of course, it allows you to zone in on high-value customers that are in it for the long run.
4. Regular communication
Stay top of mind by keeping in touch regularly. As they say: out of sight, out of mind.
Regular communication can come in many forms. You don’t always have to reach out with a new promotion every time. It can be to inform them of a new product that could be of interest, company news, and even to wish them happy birthday.
Send your message in the way your customer demographics prefer.
Whether it be by mail, email, SMS, social media, or phone, picking the right media can be the difference between a well welcomed or spammy message.
6. Use of social media
The advancement in technology has made a world a global village through the advent of social media. The use of social media helps to build trust, respond to customer queries and continuously engage them. The available and most convenient media that can be used are Twitter, Facebook, and Instagram among others.
Twitter is especially efficient for social customer service. It has a component of a personal touch while keeping it to the point.
Facebook is good at keeping customers and potential customers engaged through fan pages, communities and groups, while Instagram is great to set a whole lifestyle feel around your offering.
Engage on social media the same way you would with friends. By bringing familiarity to a brand, you're sure to lock in customers and potential clients.
5. Customer satisfaction survey
If despite your best efforts, your customer retention tactics are not successful, maybe it’s time to face your customers and ask them to tell you what’s really going on.
Ask existing customers for their feedback about your customer service, brand, and product. Doing so can help you identify areas that need improvement and that is hurting your customer retention.
A survey done well can help you spot specific measurable and actionable areas to improve on.
Existing customers should be the true target in any organizations marketing strategy. Not only are they 50% more likely to try one of your new products, but they’re more likely to spend more and at a lower cost to you.
So get on it and start growing your customer relationships! Your existing customers are waiting to hear from you and looking forward to get more involved with your brand.
How much of your company’s efforts go towards customer retention? Which tactics have you used to get your customers coming back for more? Let me us know in the comment box down below!