By Will Fraser
Any seasoned business owner understands that retaining customers is key to the overall success and growth of their business.
According to research from Harvard Business School, “increasing customer retention rates by 5 percent increases profits by 25 to 95 percent.”
But what are the determining factors that will prompt a customer return?
Personally, one bad experience is enough to make me switch brands and, based on research by Kolsky, 67% of average consumers feel the same way. On the flip side, the more positive an experience I have, the more a brand stands out in my mind as a quality product/service provider. NewVoice found that “50% of consumers would use a company more frequently after a positive customer experience.”
Customer Experience First
Consumers value their experiences with a company more and more.
Your business needs to compete based on experience. According to Gartner, “89% of marketing leaders expect to compete primarily on the basis of customer experience by 2016, compared to just 36% four years ago.”
Customer Retention Definitions
Customer Retention: When a customer continues to return to the same business to purchase a product or service.
Customer Retention Rate: The percentage of customers who purchase from a business again vs. all the customers who purchased from the business at least once during the period of time in question.
Customer Retention Strategy: A program designed and implemented by a business to improve their customer retention rate.
This article outlines seven strategies for retaining customers and improving the overall success of your business.
6 Customer Retention Strategies That Actually Work!
According to Marketing Wizdom, “the average business loses around 20 percent of its customers annually simply by failing to attend to customer relationships.”
Here are seven customer retention strategies that actually work:
1. Position Your Brand in Your Customer’s Heart
The emotional attachment that consumers develop with a brand dramatically influences their purchasing decisions.
Standing for something, understanding your customers and backing your brand up with social proof is the perfect recipe for having customers feel a personal commitment and loyalty towards your brand.
Stand For Something: According to the Harvard Business Review, 64% of customers that have strong relationships with brands do so because they identify with the brand’s values. Remember, it’s not a value until it costs you something so don’t be afraid to think big here.
Speak Your Customers’ Language: Understand who your customers are and craft strategies, communication channels, and messages that articulate your brand’s values in a way they understand and relate with.
Social Proof: Amazon Customer Reviews, TripAdvisor, and Yelp are all great examples of common platforms that customers are using to check out your brand’s quality, personality, and values. When customer reviews reinforce the consumer’s feelings, they are more likely to stand by their loyalty to your brand.
Recommended Action Step: Speak about your values in the language Go to the full article.
Source:: Business 2 Community