Customer retention is a priority in digital marketing, especially with higher customer expectations and a fluctuating economy. Marketers are placing a greater focus on customer retention strategies. We’re here to take a deeper look into what is customer retention and the best strategies that you can adopt for your business.
What is customer retention?
Customer retention is a measure of customer loyalty, and it refers to how well your business can keep your customers returning, time and time again. High customer retention rates mean that your customers are choosing your products on a circular journey, known as the customer loyalty loop.
There are various customer retention tactics and strategies that businesses adopt for customers to keep returning to their business, including loyalty offers, rewards, customer loyalty programs, and more.
Why is customer retention important?
Companies have often undervalued customer retention’s importance, focusing only on getting new customers. In fact, research has shown that only 18% of businesses focus on retention. However, these statistics are changing with businesses realising the importance of keeping customers coming back for more.
It’s also less expensive for a business to attract returning customers than new ones since retention is cheaper than acquisition.
Customer Retention Tactics
When developing your customer retention strategy, focus on these areas to keep your customers coming back to your business.
Build long-term relationships with your customers
Customers want to be seen and heard so trust is an important element in your customer retention strategy. To build long-lasting relationships, education is key. Educate your customers on the most effective way to use your products and share knowledge with them. Outstanding customer service should also be at the top of your list while developing a frequent communication calendar of events is essential.
Offering convenience features such as express shipping, free returns, and mobile pick-up orders (case in points Starbucks’ Mobile Order & Pay) is also an added bonus ad that will retain customers for longer.
Listening to your customers will allow you to get feedback that will strengthen your customised experiences.
Create a loyalty program
An effective loyalty program needs to contain a number of elements for it to be successful. Firstly, the program needs to include rewards that reinforce your core business goals. Whether you want more visits or conversions, make sure that your program and rewards are structured to achieve that result.
An effective loyalty program will also include tiers to include more benefits for more valuable customers. Finally, your program includes targeted offers and rewards that might be personalised to your customers’ interests and preferences.
The online retail industry uses loyalty programs to their advantage, unlocking more benefits and additional discounts when you spend more at their e-commerce business.
The iGaming industry also utilises loyalty programs at their best. Casinos regularly offer players online casino bonuses and have promos to retain and increase their user base in their loyalty programs.
Today’s technological advancements can make your entire marketing process simpler. Instead of tracking your customers individually and manually, a marketing automation solution that uses AI and machine learning can automatically recognise when your customers lapse and try and target them with personalised relevant content.
By taking a strategic approach to customer retention, you will be able to keep your customers loyal for the long haul.