TLDR:
- Differentiate yourself by personalizing the customer experience as much as possible
- Deviate from the norms of traditional loyalty programs and be unique
- Don’t forget about customer service. If you do, you won’t ever see the light of returning customers
- Frequently communicate and engage with your customers in as many ways possible
- Go the extra mile to build strong customer relationships that they reciprocate with a strong emotional attachment to your business
- Personalize, personalize, and personalize: The 3 Ps for customer retention
Growing the output of returning customers
When it comes to exponentially growing your business, the most significant factor it boils down to is your customer retention, that being how many customers return to you and how frequently.
It is a challenge in itself to even attract customers in the first place but to retain them is an entirely different ballgame altogether.
But we’ll go through 5 customer retention strategies you can implement to keep that slope of returning customers as slippery as possible; maximizing the number of customers that fall down your rabbit hole, for that is the ultimate end goal of all businesses at the end of the day.
1. Personalized Customer Experience
If you’re competing in a highly saturated market, then it's especially important for you to differentiate yourself by personalizing the customer experience as much as possible. You must be able to convince customers to purchase from you rather than from the established brand they’re already familiar with.
To do so:
- Segment customer bases into groups based on data you’ve collected. Include factors such as demographics and purchasing history to send personalized recommendations and offers.
- Take the time to write personalized emails to customers, especially if you’re a local business. You want your business to be an integral part that makes the community close-knit.
The more you can personalize the experience, the more customers will be enticed to become a regular of your business.
2. Loyalty Programs
Though a tried-and-tested method you’ll virtually come across any business you shop at, it is because of the rewards and incentives aspect of it. You can make your loyalty program more unique by:
- Non-monetary rewards such as exclusive experiences, early access to new products, and personalized one-on-one services, create a sense of exclusivity, value, and belonging that goes well beyond just being any other customer from their perspective
- Surprise rewards, discounts, and gifts at random intervals
- Donating to a charity of the user’s choice on their behalf for every milestone reached, not only fosters goodwill but creates a positive social image of your business
Every business rewards customers with some in-store cash for every $25 spent. Deviate from that and devise a loyalty program that is unlike any other in your niche that your customers would sign up for without being asked.
3. Customer Service
As obvious as it is, some major businesses tend to disregard this aspect, even though it's essentially a cornerstone of customer retention . Deliver exceptional customer service by:
- Quick-to-respond support whether through email, chat, or phone
- Proactive problem solving such as a shipment arriving later than expected
- Follow up with customers after a purchase to gather any feedback and issues they may have experienced, showing that you value each individual opinion
Remember that if customers don’t feel obligated to leave a positive review, don’t expect them to come back.
4. Regularly Communicate and Engage
Communicating and engaging with customers on a frequent basis will make them want to check out what’s new at your business. You can do this by:
- Sending regular newsletters, product updates, and special offers to your subscribers
- Interact with your customers on all major social media platforms
- Create relevant and valuable content that establishes your business with a good degree of authority in your niche
If you have a lot to say often, your customers won’t want to forget about your business.
5. Emotional Attachment
Go the extra mile to build strong customer relationships that they reciprocate with a strong emotional attachment to your business, with stuff such as:
- Handwritten notes to express your gratitude for each purchase made
- Samples of products that are a work-in-progress with a customer’s purchase and asking for feedback so they know their opinion matters a lot to you
- Offering regular customers a first look at upcoming products so they know what you mean to them
The stronger the emotional attachment, the stronger you can anticipate the output of returning customers to be.
Exponential business growth is certainly a numbers game, but as has been the theme with our customer retention strategies throughout the course of this article, if you can prove that each customer is far more than a mere number to you from each aspect possible, then consider yourself golden.