We have written at great lengths about digital marketing, affiliates, and lead generation; now, it’s time to speak about how you can retain your customers.
After you have converted a lead into a paying customer, you want to retain them. You want them to buy your product or use your service again. This is what customer retention is all about. After all, your best customers are repeat customers.
Knowing how to retain your customers increases their value and your revenue. Not to mention that you can meet some great people and build a loyal customer base.
Statistics say that it is far less expensive to retain a customer than it is to acquire one. Furthermore, the chances of you selling another product or service to an existing customer are far more likely than selling it to someone who’s never bought from you before.
Customer Retention Formula
This formula is quite straightforward, even if you’re not too good at mathematics. However, the fact that the formula is easy doesn’t take away from the fact that it can teach you a lot.
The first step is to select a time period, and then:
Number of customers at the end of the period – Number of customers acquired during the period ÷ Number of customers at the start of the period x 100
Customer Retention Strategies
1. Setting Goals
The first part of customer retention is setting up a goal for yourself. After you’ve calculated how many customers you retain, try to set a goal to increase that number. However, it’s important to remember that the goal has to be feasible. As the saying goes, ‘You must learn to crawl before you can walk’.
2. Learning the Route
The route that leads take before converting into customers is essential. Try to find out how they became aware of your business, if they follow you on social media, if they saw your ad somewhere and were redirected, etc. If you can find out what led them to convert from lead to customer, perhaps you can use the same method to make them a satisfied repeat customer.
How your leads and existing customers perceive your brand is of crucial importance. If your brand is seen as one that focuses on corporate social responsibility or subscribes to green practices, it will add to its perceived value. This is especially important today as more and more customers are becoming eco-friendly.
4. Keeping Up
We’ve often heard the expression “Communication is key”. While it may not be the only key that unlocks customer retention, it is certainly an important one. Touching base with your customers and interacting with them on social media has never been so important.
5. Educating Customers
Numerous studies have shown that customers are happy to buy products from businesses that put effort into the content they release. Companies that are willing to educate their audiences tend to have higher customer retention rates. If someone thinks of your content during a conversation and uses it as an example to drive a point home, you can celebrate a big win.
6. Rewarding Customers
As outdated as it may seem, loyalty programs have always been and will probably always be a great way to retain customers. It is undeniable that your customers will return to shop with you if they know that they will be rewarded for it.
To Sum Up
Customer retention isn’t always easy, and it doesn’t improve overnight. It takes time and effort to figure out how many customers you retain and what methods you can employ to increase that number.
Your current customer base is your biggest asset, so don’t forget about them.