In our customer-centered economy, where competitors would gladly engage with those your business has overlooked, customer retention is more important than ever before. The age of constantly seeking out new, one-time customers is over. Companies have learned that the entire process of targeting, attracting, and gaining a new customer can be costly, and that hard-won customers are invaluable.
A retained customer is a loyal one. They’re most likely to speak highly of your brand, and help to generate positive word of mouth marketing, either offline or on social media. They form the following that can improve your brand’s reputation and popularity. And, because loyal customers are likely already satisfied with your product, they are more likely to accept upsell offers, which makes them even more valuable.
But how do you retain valued customers? And how can you inspire their loyalty? The key is to develop deep, lasting customer relationships built on meaningful engagements. Just as in any other human relationship, customers interact best with those who they’ve previously connected with. Brands should form and maintain those connections using customer retention marketing.
Customer Retention Marketing Bolsters Loyal Customer and Business Growth
Customer retention marketing is critical if your business plans on growing. It enables you to cultivate a base of repeat customers, which is necessary to ensure steady revenue for years to come. This marketing strategy focuses on developing the quality of the customer relationships you already have, as opposed to an expansive search for new customers.
That’s why customer retention marketing can be thought of as a strategy that naturally results in business growth. For example, as new customers are trying out your brand, they may need time to familiarize themselves, and may be skeptical about trying higher-priced products and services. This may not be true for loyal customers. They’re likely to help you expand revenue through their willingness to accept upsell offers, subscription add-ons, or higher pricing tiers.
Many companies cultivate their base of loyal customers as a source of revenue growth. Here are a few of the ways to engage your customers and deepen their relationships with your brand.
- Cultivate Relationships Built on Trust
If you want customers to remain loyal to your brand, you have to be trustworthy. It’s crucial to be honest in all communications and interactions and always come through on brand promises. You should also use behavior data you’ve gathered about your customers in trustworthy ways. Only give them recommendations for products that will offer them relevant solutions, and never sell any of their information to third parties. A customer who trusts your brand is highly likely to stick with your brand, as well as recommend it.
- Set Expectations You Can Meet
Another key way to cultivate trust is to lay out expectations for your brand, and meet those expectations. Start by understanding what your customers want. What problems do they hope to use your product to solve, and what expectations do they have for that product? Listen with empathy to their feedback and study their product usage closely to understand their mindset. Then, assert how your product will benefit the customer and make sure you follow through.
By first understanding what customers want and by being honest about what your brand is capable of delivering, you can avoid over-promising. Sure, we all want to be able to tell a customer “yes,” because it makes them happy at that moment. But if it comes at the expense of making a promise you may not be able to keep, you risk alienating that customer. And if a dissatisfied customer complains about your business on a public platform, you risk alienating potential customers, too.
- When Customers Speak, Listen and Act
Customer loyalty is built upon your company’s ability to listen to customers and act upon their feedback and demands. This is not only how you retain an individual customer, but how you use the feedback offered in a complaint to improve your product or service. When customers churn it can be difficult to troubleshoot the causes, especially when customers refuse to take exit surveys. Complaining customers can actually offer you valuable information that can be used to make your brand and product better—for free.
Try to understand why the customer is unhappy. Empower your customer success teams to rectify complaints, even if it involves compensation. And make absolutely certain you record and review the feedback gathered in the complaint. Remember, your customer didn’t need to complain, they simply could have left without a word of explanation, which would leave you with the unanswered question of, “why did the customer churn?” The problem that caused them to leave would remain undetected, therefore negatively impacting other customers. But by contacting your company, the customer gave you an opportunity to engage and retain them. In this light, a complaining customer has done your business a favor. So be sure to return the favor in the form of action.
Find the Right Channel for Your Customer Retention Marketing Campaign
The key to customer retention marketing is finding the right space to engage customers. A mobile app that rewards shoppers every time they make a purchase or interact with a brand offers the perfect opportunity.
Partner with Shopkick to discover an effective means of connecting with customers, raising brand awareness, and increase revenue-enhancing upsells.
Make an impression on new customers and deepen relationships with existing ones using Shopkick. Partner with Shopkick to discover an effective means of connecting with customers, raising brand awareness, and increase revenue-enhancing upsells. By rewarding your customers, you can build positive brand affinity and create a memorable experience, which encourages repeat purchases and brand loyalty. And that’s a partnership that benefits both you and your customers.
Shopkick has a loyal community of users who love engaging new brands and earning rewards by shopping with us. Our partners leverage our app and following so they can engage in meaningful ways with new customers. We offer an excellent in-app environment where your customer retention marketing campaigns can thrive. Check out some of our success stories to see how other brands have partnered with us for better customer engagement.
Image courtesy 13_Phunkod
