Client Retention Strategies—Scale Differently as a Brand Owner
Did you know that if you retain just 5 percent of your customers, you get to increase your profit by up to 125 percent?
Now, which do you focus more attention and resources on? Customer acquisition or retention? We understand that most brand owners focus all their resources on customer acquisition since they believe that it carries the bulk of all their marketing strategies. However, it is not so.
While customer acquisition is obviously important, customer retention is arguably more crucial and businesses should spend most of their resources on it. Below, we list a number of strategies that could help you convert new customers into long-term customers, loyalists and even brand ambassadors.
5 proven customer retention strategies to scale up your brand.
- Focus on service: nothing wins the trust of your customers more than excellent customer service. Delivering superb customer service should be your main priority as a brand owner. It is important to note that your customers may shuffle among brands because of price but a sterling customer service will keep them glued to you always.
- Leverage customer relationship management (CRM) system: a CRM system is what we like to call a fairy godmother, as it helps you to monitor, follow up, and communicate with your customers.
- Always measure customer lifetime value: Customer lifetime value is simply how important a client is to your business, it tells you whether to invest more money in retaining that client or to pull out. Measuring customer lifetime value allows you to allocate scores to clients based on their frequency of purchase, worth of their purchase, recency, etc. So, you know what each client is worth and you also know where to throw the weight of your retention strategies.
- Turn complaints into assets: complaints can be wielded as a retention strategy: they serve as opportunities for you to engage your customers, resolve their problems completely, understand their pain points and even appreciate them with extra services.
- Communicate frequently: don’t leave your customers guessing: always make sure they are aware of everything going on, whether an upcoming sale, giveaway or price increase. Intentionally carry them along because effective communication is what keeps your client-brand owner relationship smooth sailing.
We enjoyed putting this article together for you because our goal is to see your brand thrive and grow. We put up only these 5 due to the conciseness of this article but for further information and consultancy, we would love for you to contact us today.
