Have you wondered what factor makes your customer come back to your brand? The answer may be the product quality, customer service, price tag or even the option to customise to their need. In the overview, customers come back when they have a positive experience with the brand. 75% of customers say they will stay with the brand that offers a better experience.
They want to be part of their favourite brand and take pride in associating with them. And it is no easy feat to build a loyal customer base that can boost the business to success, considering today's highly competitive business landscape. Acquiring new customers is undoubtedly essential. However, retaining existing customers is equally crucial for long-term success.
How Does Customer Retention Help the Growth of the Business?
The Value of Customer Retention
1. Building Brand Loyalty
Having a solid, loyal customer base is vital in building a brand image and reputation in the market. When customers have a positive experience with a company and its products or services, they are more likely to continue doing business with that brand. 72% of global customers feel loyalty toward at least one brand or company. Customers are a brand’s greatest ally and loyal customers tend to trust the brand, provide valuable feedback and even defend it during times of controversy.
2. Increased Customer Lifetime Value
Customer lifetime value metric or CLTV represents the total revenue a customer generates over their entire relationship with a company. How the brand approaches the customer and how the relationship is maintained plays a great role in the lifetime value of a customer. By retaining customers, businesses can increase CLTV, as loyal customers tend to make repeated purchases and are more receptive to cross-selling or upselling efforts. 88% of consumers say it takes three or more purchases to build brand loyalty. A brand that has an increased percentage of customers' lifetime value can spend less on acquiring new customers.
3. Positive Word-of-Mouth Marketing
There’s no better way to create a strong loyal foundation for a brand than word-of-mouth marketing. Satisfied customers are more likely to share their positive experiences with others, leading to organic word-of-mouth marketing. Retained customers who become brand advocates can significantly impact the growth and reputation of a business. Moreover, positive reviews and recommendations from existing customers can attract new customers who trust the opinions of their peers.
How Can a Brand Improve its Customer Retention?
Effective Strategies for Customer Retention
1. Personalized Customer Experience
Customers love to be acknowledged. Tailoring the customer experience to meet individual needs and preferences is a powerful strategy to personally connect with the customer. Brands have to access customer data and leverage them by utilizing Customer Relationship Management tools (CRM) which will also help businesses gather insights and create personalized interactions. This may include personalized email campaigns, special offers based on customer purchase history, or providing personalized recommendations.
Must Read: Learn how to create personalised content using Generative AI tools.
2. Excellent Customer Service
The age-old saying “The Customer is King” is not to be taken lightly. It is a mantra every business must abide by in order to be successful in the market. A brand's top priority should be delivering the best to its customers and keeping them happy. One of the best ways to do so is to provide exceptional customer service.
Selling a product is challenging but following up with the customer and maintaining a healthy relationship is crucial for customer retention. Businesses should strive to provide timely responses to inquiries, address and resolve customer issues promptly and go the extra mile to exceed customer expectations. By making customers feel valued and well cared for, businesses can foster long-term loyalty.
3. Loyalty Programs and Incentives
Customers always want more than what is offered. When a brand does reward them for a purchase, customers tend to trust and be loyal to those brands. Implementing loyalty programs and incentives can encourage customers to stay engaged with a brand. These may be given out
Exclusive offers or discounts.
Inviting to brand-organised events.
Subscription to your marketing content or early access to a new product.
When customers feel they are being prioritized, businesses will have a greater opportunity to engage with them and improve their lifetime value.
4. Proactive Communication
Regular and proactive communication is key to factor in catching customers' attention. Businesses can inform customers about new products, services or promotions through newsletters, social media updates or personalized notifications. Staying connected with customers helps to maintain engagement and ensures they remain aware of the value the brand offers.
5. Continuous Improvement and Feedback
Actively seeking and incorporating customer feedback is vital for customer retention. By listening to customer opinions, concerns and suggestions, businesses can improve their products, services, and overall customer experience. Surveys, feedback forms and review platforms are effective tools for gathering customer insights and demonstrating that their opinions are valued.
6. Building Emotional Connections
Developing emotional connections with customers can significantly impact their loyalty. Businesses should aim to create positive experiences that evoke emotions, such as joy, excitement, or trust. This can be achieved through personalised messaging, storytelling, or supporting social causes that resonate with the target audience.
Importance of a Rewards Management Program
A more effective and profitable way to keep your customers engaged is to have a loyalty program that rewards them for purchasing your products. Cashbacks or loyalty points they can redeem for later purchases encourage customers to re-purchase the brand's product.
A proper reward management system identifies and rewards the best customers and performers which encourages them to improve their performance.
Implementing a properly strategised rewards program can be a difficult task considering the vast customer base and market demand for your products. And that is why Bonus by Acviss is a great option. Having an excellent rewards program will be fruitful for your business in the long run and create a sense of trustworthiness in the minds of your customers.
Bonus helps you to reward your customers, no matter where they are and what they have purchased. Your customers will get exclusive rewards for staying loyal to your brand. And the best part is the custom-branded application can reward even the sellers, dealers and customers at the same. Keeping everyone in the supply chain happy and encouraging your products to be marketed more.
How to Implement a Rewards Program
Learn your audience
Finalise your target group.
Understand which programme suits your target market.
Create a budget
Know which rewards are more favourable to your customers.
Strategise a proper plan and an objective.
Must Read: Top Customer Reward Strategies to Build Brand Loyalty in 2024
Ultimately,
Customer retention is not just about maintaining revenue; it is about building lasting connections with customers and creating a community of loyal brand advocates. By prioritizing customer retention, businesses can secure their position in the market, drive sustainable growth and differentiate themselves from competitors in an increasingly competitive business landscape.
So keeping your customer close to you is not just another responsibility but a necessity for your long-term growth and success.
If you desire to be the brand that wants to make the change, remember to get in touch with us, because we are here to create a world that is safe for brands to grow. Acviss has protected over two billion products across the globe and we assure you that your brand is a priority for us.
