Customer retention: What it is and how to achieve it

"The customer is always right" is a motto that has been questioned like no other, since everyday life is full of examples of consumers with irrational demands. It does however highlight the importance of acquiring and maintaining a satisfied and, therefore, loyal clientèle that will ensure your business’s path to success. And if attracting customers is considered the basis for any new company taking its first steps in business, gradually establishing a strong customer base is what will lead it safely to the top.
Customer retention, i.e. the process of engaging and retaining existing customers to make repeat purchases from your business, is very important for your company, since:

1) It reduces the need for further expansion of your clientèle, though of course growth is always desirable. Research shows that existing users –if they are satisfied– are more willing to try new products or services from the same company, while they also tend to spend more when doing so.

2) It enhances your image in terms of customer experience. This makes customers come back for more, especially when they've received the service they were looking for and perhaps even better service than what they were expecting. This indicator is of great importance for your business, acting as an advantage over competitors but also as a positive feature for investors or shareholders.

3) It costs less –up to 25 times less, according to research– than the expenses required to target and successfully reach new customers.

But how can your business achieve customer retention? Here are five ways:

Timely and smooth delivery

With much shopping nowadays being done online, it’s clear that in order to retain satisfied customers your business should provide a first-class delivery experience. The delivery of products should be fast, while giving the customer the opportunity to track the package and receive relevant updates at every stage of the process. Needless to say the delivered products should be in excellent condition.

Customer retention: What it is and how to achieve it

Personalization

This is, perhaps, the key factor to retaining customers, since it makes them feel special. So you need to be original and innovative when deciding on a number of issues, from the delivery box to a potential gift accompanying the purchase.

Immediate follow up

As you know the date of delivery of the product or completion of the service provided, you’re advised to send an email or a message through which you express your thanks, reminding customers that you remain at their disposal for anything they need, both for the present or for any future purchases. It's a good idea to accompany this communication with coupons or offers.

Keeping in touch

Once your business has the customer's contact details at its disposal, then you can schedule sending emails with offers, special discounts or reward programs from time to time. In this way, communication and interest are kept alive. Note: The first few messages may not immediately translate into purchases. In gradually building a business relationship with your customers, time and constant monitoring are required for the communication to improve.

Utilization of social media

Many customers spend a lot of time on social media, so it’s advisable to post content –ideally the same one you used in your communication emails– in order to arouse the interest of your customers.

Clearly, customer retention is not easy, as it requires adaptability, with consumers' habits and desires constantly changing. The best customer for your business, however, is not the one who buys once, but the one who returns, recognizing your company's value. So that’s what you’re aiming for.

Sources: The Invesp