Customer retention is one of the most decisive factors in a business's success because it calculates how successful they are at converting new customers and satisfying existing customers.
There are some reasons why customer retention is critical to business growth:
Economic sustainability :
Businesses can save on marketing expenses because retention is less expensive than acquisition. It’s sustainable to keep someone in the fold than to bring in new customers.
Upsurging Profits :
Retention metrics can give you every inch of information about customer's purchase
- What's the customer’s purchase budget
- How frequently they buy from the company
- The time gap between purchases
According to research, already acquired consumers buy around 90% more frequently, On average, they are delivering 23% more revenue and profitability over the average customer.
Verbal evidence is more powerful than advertising from virtual Ads.
The number speaks for itself:
- More than 90% of people trust recommendations from family and friends more than all other forms of marketing
- One offline word of mouth impression converts sales at least 5x more than a paid one.
Conducting a reward program :
Company has to make little investment but it’s worth adding rewards points to customer pocket can help your company to escalate brand community
Loyalty points, lucky draws, VIP tiers, and referral discounts can surge your customer loyalty and forfeit other offers from other stores offering the same products/service
Customer Feedback :
Customer feedback is an easy way to determine if the selling process went smoothly and customers are happy with the service
Following are some of the best ways to getting opinions and suggestions from your valuable customers:
- Interact with customers through business social media profiles
- Create polls and surveys on social media accounts as well as your business website
Follow up after purchase:
Customer experience doesn’t finish with selling products to customers; it’s a continuous process from asking the reviews of product, delivery, and packaging.
Make sure to stay in touch with your customers after they make a purchase.
Improve your Customer Retention Metrics:
Improve your Customer Churn Rate (CCR) with outstanding customer experiences :
9/10 shoppers will switch to a competitor following a bad customer experience
Analyzing the customer behavior and placing the customer to your core of a business to build brand loyalty
Improve your Average Order Value (AOV) with product bundles:
The product bundle will give the ambiance of peculiar products to customers and adding a wishing card with products will be exclusive.
Improve your Profitability Per Order with customer reviews:
Shoppers are 59% more likely to trust their peers when forming an opinion about brands and products with reviews on their website
The best way to increase your profitability per order is to push your higher-margin products, and the best way to do that is with customer reviews
Improve Time Between Purchases (TBP) with Social media :
Using social channels to encourage customer feedback will help you gauge your customers’ satisfaction, creating a two-way communication loop that builds trust and strengthens their relationship with your brand.
Improve your Customer Lifetime Value(CLV) by making your website mobile compatible :
It’s estimated that 2 billion people will make mobile purchases this year, so having a well-designed mobile website is necessary
Apprehending customer service by tracking and measuring the retention metrics will benefit the business avoiding the recurring costs and identifying the customer purchase will increase the sales of products and services.