Most businesses around the globe invest a lot of time and resources into acquiring new customers, the aim being to widen the customer base as much as possible.
However, a study by Marketing Metrics in Jill Griffin’s book ‘Customer Loyalty: How to earn it’ revealed the probability of successfully selling a product or service to a prospect is between 5-20% whereas when selling to an existing customer this number jumps up to 60-70%. Revealing the importance of retaining customers.
Collecting customer data
Having an understanding of who your customers are; provides businesses with the opportunity to personalize communications.
- First and last name
- Date of birth
- Contact details
- Social interests
Demographic information can be used to filter data before using it in a campaign. By sending the right message to the right person at the right time you boost your chances of persuading customers to return, time after time.
- Footfall & dwell (which areas of the venue customers like to visit)
- How often they visit (frequent visitors are likely to make more purchases)
The information collected when customers are within a business venue can provide insight into the most commonly visited sections meaning any changes to the layout can be based on fact.
Find out why your customers are leaving
By paying attention to the complaints of lost customers, businesses can avoid any harmful information spreading to other prospects.
32% of all customers would stop doing business with a brand they loved after
one bad experience – PricewaterhouseCoopers
Despite it meaning the loss of revenue, the reason(s) given as to why you lost their business can be vital to keeping the accounts you still have. Even if you’re the best in the market, you can always improve.
Quote by Albert Einstein: “Once you stop learning you start dying”
This quote can be applied to your business too.
Show that you value your existing customers
We’ve all experienced it when you hear a deal that sounds great but is only available to new customers…
FACT: 68% of customers churn because they think a company doesn’t care about them.
Platform interactivity benefits
SaaS businesses can provide discounts or extend a customer’s contract after making the most of their product.
Not only does this then mean the customer has a great knowledge of the solution, making it more difficult for them to switch, but also makes them feel valued and appreciated.
Buy some and get some extra
The classic sales technique of “buy more get some free” is one that always entices us. Whether we’re in a local grocery store or part of a business deal between companies, it always feels good to get more than what we pay for.
Gamified loyalty programs
Primarily seen in the B2C climate, customers can gain rewards by completing tasks through a downloadable app. The majority of the time these tasks require multiple purchases before a reward is given. However, in some cases, if a customer has been inactive for a period of time then a voucher or freebie can awaken them from their slumber and entice additional purchases.
Collecting and acting on feedback
Not much can be expected to change if businesses aren’t looking to improve, and one of the best ways to do this is by collecting feedback from all customers.
What are we doing right?
By giving customers the opportunity to tell the business what they do well means that company strengths can be shared in both internal and external marketing efforts but also boost employee confidence.
What are we doing wrong?
You might get your feelings hurt but by asking this openly, customers are able to provide their unique experience when working with your company and if something needs changing it’ll be clear.
Why did you choose to leave?
Asking this question is probably the most important of the 3 because whatever the answer may be, you don’t want it to happen again. Of course, not all reasons will be actionable but it’s always important to know the cause.
Make onboarding easier
We’ve all heard the phrase “Time is money” and in today’s climate, we like to get things done quickly. When a prospect chooses to learn more about a product there should be as few steps as possible.
If customers are left to set up a technical solution alone, they won’t be excited about it for very long. By providing engaging training or handheld guidance directly on your platform, customers can effectively learn how to best use your product.
Here are some effective onboarding tips:
- Create a journey of what success looks like and celebrate the milestones
- Be ready to adjust onboarding strategies to evolving customer needs
- Be available across a variety of channels
- Re-emphasize the value of the product
You can find out more info about onboarding here