Top 5 Steps to Improve Customer Retention Through Marketing
Top 5 Steps to Improve Customer Retention Through Marketing –
A major concern for business owners is finding new ways to increase revenue. It may be difficult to always scout for new clients, educate them about the product, and create a connection. While gaining customers is hard, retaining them can be hard too if there is no effective way to address their queries. As per Marketing Metrics, the success rate of selling to a new customer is 5-20 percent and for an existing customer it goes from 60 percent till 70 percent.
Why Customer Retention is Important?
Customer retention is making sure the customer is happy both with the business and the product. Customer retention is necessary for any business. Some assume that if the product or service is good, customers will automatically be connected and retained. That is not true in the long run.
Earning customers loyalty is more long term and beneficial for your business. An effective customer marketing strategy will enable you to identify, track, and understand customers better specially when they will be long term sources of revenue. KPMG noted in a survey that businesses that understand the importance of customer retention can invest and reap rewards. Some of the reasons include –
- Better conversion rates –
Established trust is a big reason a customer can be retained with your business with AI chatbots. You will spend less time and garner more results. There is less maintenance involved and a general long -term relationship.
- Higher profits –
Selling to existing customers is easier because they have already had a relationship with the company. Its easier to convince them to be interested and Gartner says that just 20 percent of your customers can account for 80 percent of revenue.
- Lower costs –
Customer retention is necessary to save you a lot of money. A 5 percent increase in customer retention will propel the profitability by more than 75 percent according to Bain and Company.
Check out the Top 5 Steps to Improve Customer Retention Through Marketing –
1. Customer Relationship Marketing –
Customer relationship marketing is all about forming a healthy relationship with the customer. In this form of customer relationship marketing, you do not need focus on closing a one-time sale. Customer retention in this can be achieved when you align the product identity to the customer’s personal needs and build a brand.
In this form of marketing, how well your product is in front of the customer and how the company treats its customers is what counts.
- Its necessary to set reasonable expectations for customers regarding product relationship through simple measures.
- Giving customers the right education, guidance, and support about product usage is what will aid customer retention.
- Getting numerical targets is another way to see you reach your goals
- Rewarding customers can be the foundation of a lasting loyalty.
Amazon Prime is a good example of this. With the paid membership, customers can get a free delivery service and access additional discounts on a variety of products. This built brand loyalty and improved customer retention with the addition of Prime Video.
2. Focus on Customer Experience –
The most obvious way to prevent churn is by ensuring the customer has a good experience. Customer experience is when customers are happy and satisfied with their association to the brand, product, or service. Ensuring the customer has a great experience is a sureshot way to increase customer retention.
The aim should be to educate, empower, guide, and support your customers while they are associated with the brand. Creating user delight through marketing strategies is necessary to keep customers proactively involved with the company. Touching the customer at every point from websites, social media, onboarding, frequent check in calls and more.
Keeping the customer journey in mind is necessary to keep a track of user behavior. Monitoring KPI’s, optimizing the website, engaging with them actively will contribute to customer retention. Effective customer success strategies make customer goals your own goals.
3. Listen to Customers –
Listening to customer feedback is necessary to improve your product performance, design, and more. The customer success team works directly with customers and thus receives the best feedback. Taking immediate action on all aspects of the feedback is necessary. These customer insights can be highly beneficial to get the right information and idea about the product. Closing the feedback loop is essential to show the customers that you are listening to them and understand their concerns.
This Voice of Customer (VoC) is necessary to make sure the team can facilitate it. If you monitor the VoC, you can supply to customers what exactly they want.
4. Product Value –
Customer success teams should consistently demonstrate value to customers regarding the product.
Quantifying the product’s value will ensure that there is a continued benefit to customers by using the product. To do that, customer success professionals must add and share meaningful marketing metrics. Unique, exclusive relationship building based on product value is necessary. Improving your value as a trusted business partner is necessary to retain customers. If customers are happy, they will stick around. That can come only when they know product value and can use it well with the right customer education.
5. Transparency –
Providing transparency is necessary for every relationship. In the product roadmap, every communication channel will show customers that you care. This transparency ensures trust and thus customers will be hooked onto the product or brand. Appreciating the customer for being honest is necessary to make sure there is a reverse phenomenon.
An unhappy customer will likely churn. The right provision of transparency will encourage a feeling of goodwill and lead to increasing customer retention.
- Bottom Line: Best for Business
According to a research by Localytics, 25% of users never return to an app after a single session. This is why customer retention is important. Implementing the right guides is necessary to make customers understand what they have to accomplish where and when. Real-time navigation guides minimize user frustration, enhance customer experience, and improve retention.
It is also necessary to have a great user experience so that the initial integration is easier, and the retention levels are boosted.
Author Bio –
Jyothi Tulasi is tech-savvy and proficient in technical SEO optimization for various SaaS products. She has profound expertise in outreach. She loves connecting to people and singing in her free time.
Also Read – Customer Acquisition vs Customer Retention