Customer retention is the most significant retail revenue driver. On average, a business will lose 20% of its customers annually because they fail to take care of their existing customer relationships. A businesses ability to retain customers over time will benefit from repeat customers, increased sales, and a larger market share. The new year is well underway and if you haven’t considered your customer retention strategy yet we suggest you start implementing some of these examples.
Double Down On Email Marketing:
During the first half of 2020, 44% of shoppers said they were more likely to open marketing emails from brands. With an increased chance of open rates at the beginning of the year, this is the optimal time to aggressively increase your email marketing. But how do you incentivise your customers to open your emails once your seasonal sales have finished? Provide them with a solution to a problem, educate them on an interesting subject, send them entertaining content so they are more likely to open your emails later in the year. Additionally, personalised marketing is a great way to increase your open rates outside of sales.
Personalised marketing is the implementation of a strategy where companies deliver individualised content to it customers. The goal is to achieve a higher rate of engagement and creating a greater connection with customers. In a continuously advancing digital world, customer expectations are increasing. When customers provide their personal information, they expect to be treated as an individual. Businesses need to provide the information that customers want, in the right place, at the right time. Personalised marketing improves the overall customer experience, drives revenue, increases loyalty, and greatly improves the rate of customer retention. According to a study conducted by Segment, 40% of American customers say they have increased the value of their cart due to personalised service. Personalised marketing delivers proven results, so why not put a bit of work into it and increase your return.
Enhance Customer Service & Experience:
The cost of a negative customer experience is almost unrecoverable. Around 91% of unhappy customers will leave a brand without complaining after a negative experience. Customer retention is a byproduct of a business providing quality customer service and experience. Businesses that ensure their customers have a positive and easy experience generally see a higher rate of retention. Why? Because the customer feels valued and taken care of.
- Understand who your customers are and the problems they need solved
- Create an emotional connection with your customers
- Capture customer feedback and answer in real-time
- Ensure your customer’s experience is frictionless
- Spend resources enhancing your customer service team.
As customers become more empowered, the importance of creating high quality, personalised experience is becoming more important. By understanding and connecting with your customers on a more personal level, you greatly increase your chances of customer retention.
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