While many brands focus on customer acquisition, it’s customer retention that can really drive revenue. 61% of small business owners say more than half of their annual revenue comes from repeat customers. Plus, loyal customers spend 67% percent more than new customers. Given the importance of customer retention, more B2C companies will focus on driving repeat business in 2021. But how?
Focus on one priority
Customer retention strategies differ based on a company’s priority. For more than half of all B2C companies (56%), the priority is to improve customer satisfaction through better customer service and support. Other priorities include upselling existing customers or keeping customers from canceling.
Tips to improve customer satisfaction
No matter what your goal, to keep retention rate high these tips should be on your list:
- Get personal
Gone are the days of batch and blast messages. Consumers demand more. They want personalized messages, relevant product suggestions, and content that speaks to their interests. 81% of consumers say they’re more likely to make a purchase when a company makes these efforts.
To provide personalized messages, you’ll need to collect customer data, segment audiences into groups, and tailor content to specific customers to create stronger connections.
- Reward loyalty
Rewarding loyalty encourages continued loyalty. Loyalty programs create a structured way for consumers to earn free items, get discounts, or score VIP deals. Makeup lovers rave about Sephora’s rewards program, for example, where every dollar spent earns a point. The points are redeemable for new products.
To create a loyalty program, you need to make it easy to earn points, give consumers discounts on popular products, and make the redemption process simple. You may need to invest in software to launch a successful program.
- Communicate regularly
Consumers want to hear what you have to say, so don’t be afraid to communicate with them. Consider a regular cadence of communication, like a monthly newsletter and special offer. Consider creating tailored messages for specific groups of consumers too. For instance, send all rewards members a VIP deal at the beginning of each month or send product recommendations to customers after they browse your app. Find a regular cadence that works and stick with it.
- Level-up your customer service
When a customer has a question or needs help, be available. 90% of consumers say customer service weighs into their decision to do business with the company. Take a page from companies with top-notch customer service. Xbox, for example, doesn’t just answer questions on the phone, the company has an Elite Twitter Fleet that provides support from 6am to midnight. Hubspot, a marketing software company, has an array of self-serve instructions in its online library that gives users the chance to search for their own answer.
Offering unparalleled customer service isn’t just about friendly service, it’s about giving consumers choices. Offering consistently stellar support across multiple channels is tough to do, but necessary.
- Collect feedback
If you’re striving to make the customer experience better, don’t forget to get the customer’s input. This might sound like a no-brainer, but you’d be surprised how many brands assume they know best and make changes without any suggestions from customers.
Consider creating simple in-app surveys or send surveys via email. Either way, remember to keep your survey short, make the questions straightforward, and don’t restrict all responses to ‘yes’ or ‘no.’ It’s okay to ask a question that requires a sentence or two response.
Use the feedback to shape your customer service improvements, and when you do make changes tell customers that you’re listening to their suggestions.
- Don’t let customers go dormant
Part of maintaining a high retention rate is keeping customers from going dormant. When a customer’s interest level starts to wane, it’s time to re-engage. Use a customer engagement platform to monitor things like number of app launches each week, time spent in an app, and number of purchases. When these statistics start to drop, it’s time to create tailored messages or offers to keep the customer engaged.
You’ll put these “sleepy” customers in a segment and craft a campaign aimed at bringing them back into the fold. The campaign might include a “We Miss You” message with a coupon, for example. In marketing speak, you’re looking to prevent customer churn.
In 2021, the name of the game will be customer retention. To achieve success, many brands consider using a customer engagement platform that collects data and provides useful tools to connect with consumers in a way that increases their lifetime value. CleverTap can help you do just that. Request a demo today.