How do you keep current customers engaged and active in your brand?
Do have strategies in place?
Or are you more focused on acquiring new leads?
Customer retention strategies have great ROI for your business and can help your online company maintain sustainable growth over a long period of time.
For starters, retaining customers can help increase revenue at a faster pace.
A Bain & Company study found that when organizations increase customer retention by 5%, it can lead to a 25% – 95% increase in profits.
Customer retention strategies also give appreciation to your consumer base and help build stronger relationships.
This can lead to customers becoming advocates and encouraging their personal circle of friends and family to buy from you as well.
In short, customer retention should be one of your main marketing strategies when looking to increase sales.
In this article we will discuss everything you need to know when it comes to retaining customers and best practices you can start using today.
What Does Customer Retention Mean?
Customer retention is the practice of keeping any customer that has made at least one purchase engaged and motivated to buy from you again.
Once a buyer has gone through your sales funnel, they are considered a part of your customer base, and the goal is to continue to gain sales conversions and grow them into lifelong customers.
In order for businesses to continually grow their customer base, customer retention strategies need to be put in place — starting from their first interaction with you to their most recent purchase.
Through customer retention strategies, you can foster brand loyalty.
Benefits of Customer Retention
Why should you care about customer retention?
For starters, it’s how your consumer base is able to evolve and grow over time.
Companies are constantly computing customer lifetime value — how much profit a company gains from a single customer over the customer’s lifetime — and want to maximize it.
In order to maximize a customer’s lifetime value, companies need to reward customers and have other retention strategies in place to build on that relationship.
Furthermore, when brand loyalty is established among your customers, the more likely they’ll advocate your product and services in their personal circles.
Customer acquisition may seem like a more cost-effective way to grow your business, but in reality, customer retention costs up to seven times less than customer acquisition — and it can be a faster process.
Plus, when customers become recurring and loyal to your brand, they’ll not only explore more of your products, but they’ll become more profitable for your business.
Think about what brands you’re most loyal to and how much business you give those organizations.
You want that same consumer behavior for your business.
8 Customer Retention Best Practices
What are some strategies and best practices when it comes to retaining your customers? We’ll take a look at them below.
1. Reward for brand loyalty
As mentioned previously, customer retention can create customer brand loyalty, so why not reward those customers for shopping at your online store?
It not only works as an extra motivator, but can help increase your relationship with them by making them feel appreciated.
Furthermore, according to Nielsen, 84% of consumers said they’re more apt to stay with a brand that rewards their loyalty.
So how do you do this with your sales funnel?
You can direct your repeat customers to sales funnels you’ve built specifically for those loyal to your brand.
These sales funnels can give loyal customers additional deals and special offers.
Customers who enter these funnels should be told exactly why they’re getting these offers. This makes them feel like they’re part of an exclusive group, which can instill even more loyalty.
Don’t ignore loyal customers. Show them you truly do appreciate their business.
2. Be personable
Customers like it when companies put in the effort to be more personable.
In fact, customers often respond positively when they feel like a company knows them well.
In addition to adding first names to email subject lines and Facebook ads, analyze your existing customer shopping data in order to send individualized content, like product recommendations based on their last purchase.
Or sends deals on their birthday, anniversary, etc.
With this level of personalization, it can motivate previous customers to come back and make a purchase again.
3. Offer one-time upsells
When you offer an upsell, essentially, you are persuading customers to purchase additional items in order to get more of a profit.
Upsells can be as simple as offering an additional product to try or giving them a chance to upgrade an item.
Upsells are a win-win tactic because they help a customer get a good deal with your products, while you get an increase in the initial sale and hopefully, motivate customers to continue buying from you in the future.
4. Use relevant email marketing campaigns
This is a quick way to help re-engage and reward your existing customers.
Through automation, you can create different campaigns offering surprise deals, information on new products, company updates, and more.
The purpose of these campaigns is to make the customer feel appreciated for their previous purchases and encourage them to try new or different products.
Don’t flood their inboxes with multiple campaigns, but create specific ones that target customers that haven’t been active recently with a promo code or free item.
5. Educate customers through webinars
In addition to email marketing campaigns, another great way to retain customers is to provide them with educational content through scheduled webinars.
Webinars allow companies to interact with customers and foster real-time discussion.
In return, this helps companies cater better to the customer’s wants and needs with your products.
Do some research to find what topics your audience will watch and engage with the most and create a presentation that is worth their time.
In return, you’ll showcase your expertise and help instill credibility in your brand.
6. Don’t be afraid to downsell
Sometimes, a customer may abandon a sales funnel or click out of an upsell opportunity — but you still have time to re-engage them before losing them forever.
Downselling is the idea of offering a different product at a cheaper price that has a higher chance of the customer purchasing it.
Another downselling strategy includes offering the same product they initially rejected at a slightly lower price along with an added bonus, such as free shipping or discounts off a next purchase.
Test both strategies out with your customers to see which has a higher engagement rate.
7. Expand customer service to social media channels
You should already have strong customer service programs in place, but chances are that most of your customer base is on various social media channels.
Take advantage of the digital age and use your company’s social media channels to offer a more proactive approach to customer service.
Twitter replies, for instance, can help solve a customer’s issue publicly.
In that way, other customers can benefit from it at the same time.
At the end of the day, it’s all about building trusting relationships with your customers.
Having various customer service channels can better engage and thus, retain a customer.
8. Ask for feedback
As true with any company, businesses need customer feedback to not only understand their customer base, but to improve their products and services.
Create funnels that ask for customer feedback after a purchase to understand what was good and what can be improved in the overall shopping experience.
If a customer opts out of your emails, be sure to ask them why they are opting out.
Be sure to have a tool in place that collects and analyzes your customer data so you can identify areas that need improvement and fix them in a timely manner.
And at the same time, when asking for customer input, you make the customer feel valued, knowing their feedback can make a difference.
As you take a look at your customer retention strategies, see what you can start implementing today in your current sales funnels in order to create more brand loyal customers.
How ClickFunnels Can Help
ClickFunnels is a great sales funnel tool to use for your business and has the resources to help you create and maintain a growing email list.
We make it simple for any entrepreneur to build their own sales funnels in just minutes, all without needing to rely on a team of techies.
With ClickFunnels, you’ll build high converting and clean sales funnels.
Everything you need to build and launch your funnel is pre-developed and automatically pieced together for your company, so you have a seamless and fast set up.
If you want to give it a try, ClickFunnels offers a 14-day free trial. Test it out and see how well you do retaining your customers.
How have you retained customers through your funnels? What tips and tricks work the best for you? Sound off in the comments below!