Home Business Increase Customer Retention with these 5 Tried-and-tested Ways

Increase Customer Retention with these 5 Tried-and-tested Ways

Customer Retention

According to Bain and Company, “Increase customer lifetime value (CLTV) – Bain & Company says, “Increasing customer retention rates by 5% increases profits by 25% to 95%.” Hence any business that wants to grow its bottom line needs to equally focus on retaining customers and not just acquiring customers for sustainable growth.” 

We had to use the overuse mentioned above and not very recent stat because the benefits of customer retention are common knowledge. Everyone knows how difficult and costly it is to sell to a new customer than to an existing one. Maybe this is a reason why people have stopped taking surveys to measure this sentiment.

Jokes aside, if you are keen on retaining customers for your business, here are the five points you must follow. 

Retain Customers Using A Virtual Phone Number

Mitigate all possible privacy issues, spam calls, and harassment by allowing customers not to use their actual phone numbers. 

For any transaction entering a phone number and email is needed. This, however safe it may appear — isn’t. We hear news of data leaks and theft frequently, don’t we? 

When you assign a virtual phone number, the customer can use it for their online interactions with your business; this is especially important for Food delivery, E‐commerce, Logistics, Cabs on-demand, and Marketplace business models. These are verticals where the customer’s phone number needs to be shared with a delivery, vendor, driver, etc. 

A virtual phone number helps your customers seamlessly interact with your business without them needing to give out their original phone number. Doing this stops spam calls, spam text messages, harassment, and fraud calls on the customer front, greatly enhancing the overall customer experience. 

2. Offer round-the-clock customer service through chatbots.

According to a survey conducted by an automobile dealer, Autodeal, the faster an automobile company responded to customer queries, the more sales they would make. The study also showed a direct correlation between the popularity of an automobile country increasing with the decrease in their query resolution time.

This adds more proof to something we all already know — how the modern-day customers want their problems to be solved — asap! 

The most significant advantage of online businesses is that you can have them running 24/7. 

So does this mean having people working for online businesses from the clock? No! 

AI-enabled conversational chatbots help you offer customer service and customer support even during non-operating hours when there is no live agent online. 

These chatbots use machine learning to understand the contextual meaning of what the visitor or the customer is trying to say. They then reply in accordance with preset workflows. If chatbots are integrated with knowledge base libraries, and they can deliver the spot, how-to articles, blogs, case studies, and product manuals to customers over the chat. 

And yes, when these chatbots are faced with complex queries, they automatically offer a ticket to the customer and route the concern to a specialized live agent.

3. Offer reward programs 

Reward programs are the best hook to keep your customers coming to you without bouncing off to your competitors. They also motivate your existing customers to spend more on your business and also refer it more to friends and family.

One of the best examples of reward programs is Starbucks. With every in-store curbside online order, customers get stars. You can get free goods at Starbucks by cashing on those stars. 

Another good example is — Blume is an American Bodycare retailer brand that offers digital reward points to customers. At the same time, they shop and carry other activities like promoting their products, Instagram referring their services to others, and more.  

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4. Prefer a proactive CX approach

The difference between proactive customer experience and normal customer experience is that the former aims to mitigate all possibilities of any queries and problems on the customer-front across their customer journey. 

You can use customer relationship management software and tools that offer your actionable data. With this, you can make infallible, data-driven decisions. You can garner insights on customer pain points and interests and, more importantly, predict their purchase-behavior trends. 

Having a sophisticated structure to collect consistent feedback also helps in offering a proactive customer experience. As one can deliver their products and services around the feedback received.  

5. Have solid customer success strategies 

Generally, when we talk about customer retention, people think great customer experience and great customer service cut the deal. But that’s not true. 

This is when customer success comes.

Perhaps the most important time determining customer retention, customer loyalty, and customer lifetime depends on the quality of your customer success efforts. 

Customer success is a methodology in which businesses ensure that customers achieve the success they wish to achieve while using your products and services and also enjoy an excellent customer experience. 

Chewy.com is an online retail business that sells pet food and supplies. They always make headlines for their out-of-the-box super empathetic customer success ideas. 

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One of the general practices is to send personal notes and flowers to pet owners who are grieving their pets’ death. 

This helps them leave a deep, long-lasting imprint in the mind of the customers. These customers are likely to come to them again and recommend it to their friends and family, not to mention the positive brand image such acts garner. 

Conclusion 

Retaining a customer is beneficial to a business in more than one way. We hope the above mentioned customer retention points will help you to retain customers for a longer time, gain customer loyalty, and increase your customers lifetime value. 

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