In today’s world customer retention is so important to keeping your business moving forward. Repeat business is how businesses can forecast and make key decisions as they move forward. New business then tops that up, and helps to bring in new services. Customer retention rates is a key metric for companies, so here are the 5 ways to increase customer retention.
Most customers and clients will be attracted to your business due to its price. This is unfortunately something you cannot control, and will always be a factor of success. Ensuring you are competitive amongst your market peers is going to be what attracts and also retains key clients.
Equally alongside the pricing you need to be adding value for money. There is an argument to say that if you have a really good product and great service then you can raise the price and still retain your clients. There is risk and reward in this, but also could affect the existing relationships that you have.
Companies usually will review their prices on a yearly basis, and will increase them depending on market conditions, and also any overhead increases. Ensure you are competitive though, and you will retain clients/customers.
Increase Order Value Of Every Sale
This may not seem like it helps retention rates, but if you are able to offer valuable cross selling and upselling experience then you are onto a game changer. For example Amazon attributes 35% of its revenue to its cross selling or ‘frequently bought’ sections of the website.
Now, you may not have the pulling power of Amazon, however being clever with your website can help. When customers purchase an item, link them with something which is similar to increasing their shopping value. As much as you may think customers do not like spending the extra revenue, they will appreciate the product recommendations.
You also do not need to offer extra products. On a more basic level, it could be reaching a certain basket amount then qualifies for free shipping.
Build A Loyalty Programme
In the 5 ways to increase customer retention, loyalty is going to be key. Loyalty programmes are the best way to retain customers. Giving back to them, be that a discount code or even a quarterly prize are great ways to make your customers happy. It also helps to build and maintain the relationships you have. Repeat business is the best way to keep your revenue turning.
To put this in place look at your CRM, or however you track your sales to see who is in your top 10% of customers. Email the top 10% each month or each quarter and offer them a reward of your choice. Rewards can be anything from free shipping, discounts or even a thank you.
Build upon this model you have then created. Add a points system to each customer and add in a tiered threshold. Once customers start to see the return in their loyalty they will shop more. It’s good sales psychology.
The most important thing to remember in the process is to make sure you keep it simple, yet generous.
Personalise The Buying Journey
Your customers’ buying journey can have a profound effect on how they shop and interact with your business. It’s probably one of the areas which is neglected by a business, but the journey a customer takes is vitally important from how they find your business to them purchasing. Things to consider are:
- Introduce Yourself & Say Hello
Encouraging your visitors to sign up for an account with the added incentive of a small discount on their first purchase. Collect their details, and use it to improve their experience next time.
When they shop with you again and login, a little box could appear to say ‘welcome back’. This could make all the difference in making them feel welcome again.
- Monitor Preferences
How did they end up on your website? This is key and needs to be tracked. If you are getting traffic from your blogs and social media then continue to use that method of advertising. If they are coming via a third party then you may want to consider using that platform more often.
All this information will help you write and design your ads and content for each part of your website. Ultimately giving you more success.
- Change It Up
Expanding on the point above, personalising the landing page or the customer experience. This could be in the form of customised merchandising or landing pages based on their preference.
Meet Your Customers/Clients Where Possible
Probably more so apparent in Business to Business or B2B sales as your contacts will more than likely be business owners or senior managers. Meeting your client is a great way to build rapport, and also gives you a chance to find out more about the business which could further enhance the buying experience.
Meeting key decision makers means you have that association, and they will be able to build a work relationship which is not just based around work. Usually at these meetings it is also more personable.
If you are not able to meet your customers then make sure that their buying journey as we have detailed above is very clear, and a pleasure for them to be on.
Customer retention is a vital metric to most companies, and being able to see a consistent revenue stream is vital to growth and sustained business. The 5 ways to increase customer retention we have mentioned above are very simple and basic ways which can really build that relationship with customers that lasts.