5 Strategies to Increase Customer Retention
[This article was written by Samantha Higgins.]
As a small business owner, one of the best ways you can make sure your company thrives is by increasing customer retention. Oftentimes, there’s a huge focus on getting new people through the front doors. Truthfully, there’s nothing more powerful than cultivating a strong army of repeat customers. In order to increase your customer retention, consider the following tips.
1. Execute an effective social media strategy
For many business owners, social media engagement might not seem like a mandatory part of growing a business. Sure, you can definitely manage and maintain a business without incorporating social media methods. However, you’ll be much more successful with it in your arsenal. Consider a platform like Poshmark. There are tons of resellers on an app like Poshmark. However, the ones who maintain repeat customers and have the most customer retention are the ones who’ve developed a strong brand on social media sites such as Instagram and YouTube. When you utilize social media, you can talk about the latest products and services you offer. You can also remain at the top of customers’ minds when they’re ready to purchase the type of products or services you have.
2. Maintain a strong email marketing list
An email marketing list grants you the opportunity to remain in touch with anyone who has purchased from you or visited your website. There are certain elements you’ll need to put in place to gather a list of email addresses. Make sure you have a great website that captures the attention of the visitor. Once they visit the website, make sure there’s a pop-up button that will allow the visitor to put their email address in the box. While you’ll want to make sure that method is available, don’t make it the sole way you capture addresses.
Another way to capture email addresses involves using an opt-in incentive. An opt-in incentive is something that you’re providing in exchange for your customer’s email address. You can offer an e-book, a course, or a list of resources that your customer will find valuable. If your company sells beauty products, consider offering a free course that teaches customers how to take care of a certain pain point such as acne, bad brows, or large pores.
3. Provide excellent customer service
Since it’s not uncommon for people to experience terrible customer service, they remember companies that prioritize excellent customer service. When a company provides excellent customer service experiences, this communicates the value and appreciation of every dollar a customer spends or will potentially spend with the company. Think about a major fast-food chain like Chick-Fil-A. They’re known for their efficiency, great food, and excellent customer service. The way they treat their customers is one of the main reasons people will come back for more. Even if there are other chains that provide tastier options, they stand out because they are the cream of the crop when it pertains to customer service. Whether you’re dealing with a transaction that went wrong or a new customer, develop a brand that includes properly handling each customer with care, kindness, and the utmost respect.
4. Offer discounts, deals and rewards points
Offer great deals and discounts to your customers from time to time. Whether you’re creating a bundle deal in order to move inventory before the end of the season or you’re just looking to attract more customers, consider digital coupons and advertisements that promote your latest sales. It’s a great idea to incorporate mail retargeting in order to get the word out to customers that haven’t shopped with you in a while.
A rewards program is a great way to maintain customers. There are plenty of people who love earning points for transactions they would’ve made anyway. For many people, the act of earning more points encourages a desire to achieve the goal that unlocks the rewards points.
5. Create a referral program
Consider the influencer marketing model and why it’s successful. Influencers basically refer their audience members to the program in order to achieve the buzz and sales for a company. A regular customer can do the same thing within their sphere of influence. Create a referral program that rewards customers with cashback opportunities or discounted rates for products and services in the future. Not only will this keep a certain number of loyal customers, but it will help you get the word out to more potential customers.
Repeat customers tend to be loyal ones. They clearly like your brand, and they’re invested in seeing you continue your product offering because they like it. Knowing this, don’t ignore this subset of your business. Successful companies typically evolve and grow. It’s any business owner’s dream to maintain a customer base that does the same.