Brands and companies always seek to attract customers, but they forget about strategies to retain customers. This is essential for any business that wants to grow. For this reason, it is important that, within your project, you take into account this relevant factor.
The first thing that it is easier to sell a product or service to a customer you already have than a new one. So the fundamental thing about this action is that, if the consumer is satisfied with your company, they will surely become an ambassador for your brand, recommending what you offer to their family and friends.
Therefore, it is important that you consider good strategies to retain customers. It is useless to have a huge customer portfolio if you only get a few to buy your products. If you analyze it well, it is more profitable to sell a lot to a few people, than a little too many others.
Advantages of retaining customers for your business
In order for you to take into account the importance of strategies to retain customers, it is necessary that you know the positive aspects that this will generate for your business. And it is that there are many advantages that customer loyalty will give you:
- Low promotion costs: This is because the costs you will use to convince the existing customer to make a purchase are lower. Think that the customer who already knows your brand and is comfortable with your product and will surely buy from you again without hesitation. Which in turn can generate a greater profit.
- More consumption: Customers who are loyal to your company tend to buy from you more frequently and in greater quantity.
- Greater confidence: These loyal consumers are already familiar with your business, that is, they know the processes, which speeds up transactions. They are willing to pay more for the trust and security that your brand gives them.
- Better communication: communicating with someone you already know is not the same as communicating with a new person. The latter, you must attract and persuade her to buy. Instead, with the existing customer communication flows faster.
- Competition will not be a concern: There will always be competitors, but if you have a satisfied and happy customer with your attention and service, they will not think of going with another. And if they do, at a certain point they will return to your business.
What is the cost of retaining clients
Many times people do not believe until they see figures that prove it and, therefore, it is necessary to check it. According to research by Sailthru, retaining an existing customer costs 5 times less than recruiting a new one. This demonstrates the value of strategies to retain customers.
It also indicates that the probability of selling to an existing customer is between 60% and 70%. While that of selling to a new one is between 5% and 20%. Additionally, 50% of loyal customers are more likely to try new products and spend 31% more than new buyers.
This study reveals that increasing the customer retention rate by 5% increases profits by between 25% and 95%. These are real figures and, without a doubt, very positive for any business. So if you want to see your brand grow, carefully plan the actions you will take.
Learn these strategies to retain customers
Now that you know all the benefits that customer retention strategies will bring you, it’s time to create your own. If you don’t know where to start, you don’t have to worry! Here you will learn everything you need to know. Below are the factors you have to take into account to achieve this goal:
1.- Know your clients
One of the first things you must do to retain consumers is to know your customers. In fact, it can be said that this is fundamental. This implies that you know what they need and prefer, thus facilitating your work when it comes to selling. In this step, you should study well which are the most profitable buyers, since they are the ones that you should keep.
If you don’t know how you can analyze this aspect, the ” Pareto Principle, the 80/20 rule ” can help you. If you do it based on this Law, this would be translated as follows: 20% of your customers are those who generate 80% of your turnover. So what you have to do is determine who is part of that 20%.
It is necessary that you invest time and effort in knowing your clients and the best way to do it is to segment them correctly. Here, Pareto appears again to support you with the RFM method, which is in charge of classifying them according to three variables:
- Recency: Refers to the time that has elapsed since the last purchase.
- Frequency: This is to calculate the average purchase per time period.
- Money: Determines the value of purchases made by the customer in the stipulated period.
2.- Personalized messages and offers
Carrying out the first step, that is, segmentation will be of great help when you personalize your content. You have to do it based on the consumer’s buying habits. This will help you design your marketing campaigns based on the retention of each group of customers.
Take into account that the messages you are going to send to each group must be very well targeted to each target. For example, you can send them a weekly newsletter and tailor offers to achieve your goal. A good idea to increase the frequency of purchase is to offer a 2 × 1 promotion.
But if what you want is to reactivate a customer who has not bought for a long time, it is advisable to offer him a promotion of the latest products or services he purchased. Another option might be to offer complementary products that are likely to interest them.
3.- Proactivity in customer service
In the business world, it is best to anticipate small incidents that may occur. It is about thinking of a solution before an unfavourable situation worsens. This is called being proactive. Because it is useless to act reactively to try to solve a certain problem if the reaction comes too late.
The idea is that you have a respectful, educated and capable customer service team capable of solving the problem. They will be able to attend to that difficulty that was presented to the consumer related to your products or services. This cordial treatment will not only retain it but also build loyalty to your brand.
4.- Ask your consumers what they need
The key to creating good strategies to retain customers is to always seek to satisfy their needs. For this reason, it is essential that you consult them what they really want and, thus, you will know that what you are going to offer will be successful. This is also a way for the client to feel that you value their opinion.
You can also create a prototype and choose a group of your best clients to test it for free. In this way, you generate good feedback and, in turn, determine if they liked it. Engaging buyers in the development of new products will always be a great strategy to build community and foster a sense of belonging and loyalty to your brand.
5.- Use social networks
Currently, it is essential to have a brand presence in different social networks. They turn out to be a good tool that contributes to improving your consumer retention ratios. Through these digital channels, you can know what people think of your business and, in addition, they are a great way of direct communication that strengthen relationships with your customers.
Twitter turns out to be the most popular in this case, since more and more people use this platform to inform themselves. They also do it to report incidents in the use of a product or service.
Therefore, it is recommended that you have a presence on this network. Thus, you can give a quick and friendly response to your customers. Evaluate what other networks your potential customers are in and have a profile on them to improve communication.
6.- Communicate honestly
There is no doubt that being honest is one of the fundamental bases in all areas is communication. In this case, it is not the exception, therefore, you have to communicate with your clients honestly. This can be reflected in the information that your website contains, and in the different contacts that you make to your clients, either by newsletters or social networks.
By reporting transparently and honestly, you will gain the trust and loyalty of customers. This mainly applies if there is any defamation or bad news about your brand. It is not about counterattacking, but about communicating with your consumers what is happening. The idea is that you always keep them informed of what is happening.
7.- Surprise your clients
Once in a while, a surprise doesn’t hurt, and your customers will surely love it. Therefore, another of the most successful strategies to retain consumers is to offer incentives. So think about how often you can surprise them with a special discount or inviting them to an event. Not only will you strengthen the relationship but it is an effective way to retain them.
You already know the most effective strategies to retain customers, now you just have to apply them to see the results.