3 Strategies for Improving Customer Retention
In this article we will discuss why customer loyalty is so important to increase retention. When customers return to your business they provide value. They provide value in a variety of ways. For example they may bring new business opportunities, provide referrals to others, or bring their friends and family with them. When your customer is satisfied with the service and the product they receive they are more likely to tell others about your business, refer others to your business, and spread the word about your company via viral methods.
A strong predictor of customer retention is the frequency of interaction with a business or organization. A business that offers five to seven opportunities a week for a customer to contact them five times or more is far more likely to retain that customer than businesses that offer just one opportunity in seven weeks. A company that provides five to seven opportunities a week has an exceptionally high repurchase intention. They want more from their customers and that makes them far more likely to provide that value in each interaction. That value is not just the provision of services, it is also the provision of value added products.
Another great way to increase retention is through the use of social media. Studies show that customers are far more likely to give a business their social media passwords than their credit card information. This makes using social media a great way to drive sales and improve retention. Twitter, Facebook, and LinkedIn are the best places to advertise through social media, while YouTube is another great place to advertise through social media.
A third way to increase retention is through customer onboarding. Customer onboarding gives customers the opportunity to experience a smooth transition from being a customer to being a valued customer. It provides a unique opportunity to engage with customers on a closer level. This increases customer retention because onboarding introduces new features, provides new training opportunities, and introduces new processes to help a business better serve its customers. This also ties into customer satisfaction and retention as well as being a great way to increase retention.
All three of these elements listed above are easy for a business to incorporate into its core value proposition. However, what if you do not have a solid value proposition? What if your product or service does not align with a core marketing or customer retention goal? What if you do not offer a system that encourages user onboarding? If you do not provide a way for a business to increase retention then it is imperative that you find a way to improve all three of these factors.
The ability to increase retention starts with developing a social media strategy. Social media is becoming one of the most important drivers of customer retention. It allows a business to take its brand message across not only to current customers, but also to those who are not already a part of the business’s customer base. A social media company can leverage its platform to create an identity for your company while encouraging loyal followers to engage with your content. The resulting impact on customer satisfaction and retention will amaze you.
Similarly, a business can utilize CRM software to improve retention by improving its overall customer satisfaction and identifying opportunities for customer growth. A CRM strategy should be integrated with an effort to engage a current customer base and develop future loyal customers. A solid CRM strategy can increase retention by improving customer satisfaction, driving sales, and helping to identify customer needs. CRM also facilitates communication between the company and its customers, which also promotes customer loyalty.
Finally, a business can increase retention by using in-app messaging to promote engagement and introduce new processes. In-app messaging has become very popular in the enterprise realm. It allows a business to provide quick information about specific functions or features within the app without requiring the user to go out of the app. For example, instead of having to take the user to a dedicated landing page to learn more about a particular feature, the information is displayed right within the ux, making it easier to learn about a feature without actually going outside of the app. In-app messaging is especially useful for offering training or additional guidance, as well as tracking user onboarding.