Customer Retention Strategies That Work

Deploying effective customer retention strategies are crucial if you hope to ever gain repeat clients - but how can it be done, and where do you start? 

Businesses of all shapes and sizes always start with a small pool of customers. An unfortunate fact is that as brands start to grow, those first few customers are all but forgotten about - and the marketing budget is steered towards new customer acquisition, as opposed to engaging existing ones. 

In an already battered economy, acknowledging, engaging and retaining your existing clientele base has never been more important in ensuring a brand’s survival - so why are they considered to be so special?

Just a handful of the benefits of building a repeat clientele base include:

Profitability - Did you know that you’re 70% more likely to close an existing customer, as opposed to 5 to 20% for new prospects? Audiences who have purchased from you before are already familiar with your brand, and are also more likely to spend more now that they trust you. 

Efficiency - When you’re “pitching” to a potential new client, it takes time and resources. In comparison, doing business with an existing client cuts out a lot of the “selling” as they know what they’re signing up for. In turn, it’s less time and resources put towards marketing too. 

Affordability - One of the single greatest benefits of having a solid group of repeat customers is that they’re loyal. Brand should never underestimate the power of word of mouth, as happy customers in turn become brand ambassadors - otherwise known as raving fans. 

Five Customer Retention Strategies To Deploy

One way or another, both your new and existing customers are a part of the process in how you conduct business. The question is, are you involving them in that process, or taking them for granted? 

Client Accounts - While this can be a double edge sword if pushed too early, client accounts on your website can help them to track things like their purchase history, shipping information and streamlined customer service. Try encouraging this method after their first purchase. 

CRM Software - In order to provide a better service, ultimately you need to understand your customer - without being creepy. In the era of cookies and cross platform advertising, try to adopt a data policy and Customer Relationship Management technology that isn’t intrusive. 

Try Email Marketing - Insights show that client purchases via email marketing are three times higher in order value when compared to sales from social media. If your clients have signed up for an eNewsletter - they want to hear from you, so make it count. 

Offer Discounts - Universally, everyone loves a bargain. Along with rewarding existing customers for their loyalty to your brand, issuing a one time discount to a client that didn’t necessarily have the best experience can really help to turn the relationship around. 

Get Feedback - The number one reason why clients stop shopping with a brand or business is because they believe they aren’t valued. Nothing can ever replace high quality customer service, and that includes asking your clients directly for feedback or ways you can improve. 

Further Tips On Improving Your Profitability 

Here at Muro we believe that every business owner is an entrepreneur and we are here to support and guide them through their journey through strategic business advice and consulting. Please get in touch with us at Muro today to ensure that you’re on the right path for success.