Customer retention is the differentiator between firms that grow and those that don’t. The more clients you can retain and sell to, the more likely you are to meet your business objectives. Customer acquisition costs vastly outweigh customer retention costs. Selling to a current customer, on the other hand, is 6-7 times less expensive. So, why do businesses spend the majority of their money on acquiring new customers? For many businesses, the most difficult decision is where to begin. We’ve put up a list of seven realistic customer retention methods that you can employ to keep your current customers happy and enhance your revenues in the long run.
Finding new ways to boost revenue is the number one priority for salespeople. To do so, they’ll need to sell more, which implies they’ll need more customers. As a result, salespeople are frequently so focused on acquiring new clients that they overlook the importance of retaining existing customers. Despite this, we continue to hear that it is less expensive to retain existing consumers than to attract new ones.
There are quite a few ways to get customer retention right, those are:
- The first step in ensuring client retention is determining which part of your customer base generates the most money. These are the 20% of consumers who bring in 80% of the revenue for your company. The second step is to give them the best purchasing experience possible.
- Customers want the same shopping experience whether they shop online or in person. Use Conversion Rate Optimization (CRO) tactics to make your online purchasing experience as pleasurable as your offline shopping experience.
- Because of the user experience that Netflix and Amazon deliver to its clients, they have been successful. In general, user experience and Customer Lifetime Value (LTV) climb and decline in lockstep. Customers will have a higher lifetime value if you provide them with a better purchasing experience. To keep your customers, don’t rely on email marketing or retargeting.
- VIPs are an excellent method to keep your clients coming back and spreading the word about your business. Early access to discounts, VIP-only discounts, exclusive events, access to unique products, and input on product development are all examples of VIP treatment. Simply put, your goal is to make your most valuable clients feel appreciated. You want them to know that you appreciate their business and give them the greatest shopping experience possible.
Conversion Rate Optimization (CRO) has the advantage of allowing you to enhance your total retention rate without resorting to strategies like discounting (which cuts into your bottom line and hinders growth). CRO does a lot of the hard lifting when it comes to increasing repeat conversions and improving your ROI by assisting in the creation of a seamless, pleasurable shopping experience.