The Lost Art Of Customer Retention
Easy come, easy go, right? While this might be true for some things in life, customer nurturing is not one of them.
The fact is, not all customers are the same, and – when whole lifetime value is factored in – a returning customer is far more valuable to your business than a freshly converted lead.
Let’s crunch the numbers. On average, once a customer has purchased one product from your store, they have a 27% chance of returning for a second go. When two purchases have been made, this chance rockets to 45%, increasing again to 54% after a third purchase.
To put it simply, you cannot afford to be missing out on this revenue.
Of course, there are other factors which influence the likelihood of a one-off purchaser converting into a loyal consumer, but achieving this on a mass-scale requires a solid customer retention strategy.
Read on for a few points you need to consider as you work to rejuvenate the lost art of customer retention.
Defined Values, Clear Messaging
What does your business provide? What are its core values and mission statements? Who is your target market? Effective customer retention requires this sort of clarity of purpose.
Understanding how your organization is defined is the first step towards developing a loyal client base.
This is why strategizing is so vital. Rush in blindly, and you might attract a decent number of one-off customers.
Integrate your products, services and content into the aspirations and desires of the consumer, create a brand that your customers want to associate themselves with, and you will find those individuals coming back for more.
Streamline the Entire Process
We live in the age of choice. This is great for small businesses trying to make a name for themselves and deliver their products to a wider audience.
It is not so good for more established organizations who are unwilling to adapt their business model.
Think about what a customer has to do in order to connect with what you offer and to make a purchase; what is turning them off and where?
Until you have secured loyalty, a customer is simply going to use the most convenient channel to get what they need.
This is why – in 2015 – the Huffington Post listed customer experience as the top business priority for CEOs. Give your customers what they need, when and where they need it!
Invest in Service at all Points
Of course, customer experience is not limited to convenience. A loyal customer is one who feels valued, one who feels that their requirements have been served at every point in the consumer lifecycle, up to and way, way beyond the sale.
With this in mind, don’t scrimp on your service department. Provide comprehensive and effective support to customers whenever they need it, reach out to customers and provide incentives for loyalty – exclusive offers and deals, for example – and focus on honing the overall quality of the experience.
Customer retention is an ongoing process, but its value is enormous. Put in the time and effort, and reap the rewards over time.
Are you interested in engaging and converting new customers for your business? Contact me here and let’s talk about how we can help. Or follow me on LinkedIn, Twitter, Facebook
This post originally appeared on THINK Marketing.
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