In today’s marketplace, your current and prospective customers are just a few clicks away from learning all they need to know about your business as well as your competitors. In such an incredibly transparent world, retaining your customer base requires a persistent strategy.
According to global management consulting firm Bain & Company, increasing customer retention rates by just 5 percent increases profits significantly, as much as 95 percent.
Here are a few considerations to keep in mind as you develop what works best for your company’s retention strategy:
The price of acquisition vs. retention
The Harvard Business Review suggests that it is much more costly to acquire new customers than it is to retain them, ranging anywhere between five to 25 times more expensive depending on the industry.
Retaining existing customers is not only less expensive than acquiring new ones, it is a profitable move that will add more to your small business’ bottom line in the long run. In fact, approximately 80 percent of a business’ future profits will come from just 20 percent of its existing customer base, according to research published by the Gartner Group.
Track customer retention rates
One of the first steps in improving your retention rates is to analyze customer behavior and assess their needs. Who better than your existing customers to provide you with that information?
You already formulated your multi-channel marketing strategy around your customers, now, measure its success by tracking their behavior in response to your marketing efforts. Allegra can help you set up tracking and analytics for all of your marketing platforms to see what’s working to keep your customers coming back. With that data, we can tweak your strategy or make major marketing shifts to engage your customers and retain their business.
Show appreciation to customers
According to a Bond Brand Loyalty Inc. report, 76 percent of shoppers think that loyalty programs are key aspects of their relationships with businesses.
Small businesses can use customer loyalty programs to reward repeat customers who regularly buy products and/or services which incentivizes them to continue purchasing from the company.
Acts of customer appreciation also go a long way toward customer retention. From branded gifts and personal notes to promotional giveaways and birthday cards, regular customer appreciation activities are tangible ways for your company to generate positive sentiment and measurable brand loyalty.
Build relationships through regular communication
According to DMNews, 53 percent of consumers feel that it’s important for businesses to recognize them as the same person across all channels and devices. Engaged customers are likely to remain long-term customers, so gear your small business’ blog content, emails and other communications with customers in personal ways that capture their attention.
Interested in bolstering your customer retention strategies through creating increased brand loyalty? Contact Allegra today.