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Every business needs to focus on customer retention as much as customer acquisition. It’s important to be able to retain and upsell your customers to make sure they keep coming back, which in turn gives your marketing campaigns more opportunities to generate revenue.
Customer retention is a lot more than a marketing strategy. When done right, it can make a huge difference to a business. It’s not only about giving customers a good experience, it’s about getting them to buy more and make them advocates for your brand.
This blog will look at the different customer retention strategies. It will also explain why it’s important for PPC Management.
Customer retention refers to the ability of an organization to retain its customers over a period of time. A customer is retained when he continues to patronize the same store, restaurant or company. Due to poor customer retention strategies, American companies lose $83 billion each year.
Customer retention is related to customer loyalty, which refers to the likelihood that a customer will continue to do business with you over time. Usually, loyalty is built on trust, which comes from a company’s ability to meet its customers’ needs and provide value.
Keeping customers is a lot cheaper than acquiring new ones. That’s the basic idea behind customer retention — understanding why customers leave and finding ways to keep them around longer.
Customer retention is often overlooked for customer acquisition. Many executives believe that the cost of retaining customers is higher than acquiring new ones, but this isn’t the case.
According to statistics regarding customer retention vs. customer acquisition, the chances of success converting an existing customer range from 60-70% while converting a potential customer instead has a 5-20% chance.
It’s easier and cheaper to retain customers than it is to acquire new ones, so you want to do everything you can to ensure that your existing customers stay with you.
Customer retention is crucial to the success of any business. Retaining your customers means you’re keeping their business and reducing the cost of getting a new customer.
So, why is customer retention important?
Customer retention is important because it allows you to complete the holy trinity of customer management:
Here is why customer retention is important:
When a customer makes a purchase from you, that’s a win—but it’s just one win. When a customer makes another purchase from you, that’s a double win! All the time and money you spent to acquire that first customer has paid off twice as much because they decided to buy again.
That’s great for you, but why is it great for them? Because your product or service has value to them. They’re getting something they want out of buying again, so they keep coming back.
And all those repeat purchases add up over time—they’re called lifetime value. The longer your customers keep buying from you, the more they’ll spend with your company over the course of their relationship with you. And that means more revenue for you!
And there’s another important reason why repeat purchases are key: you already know how to reach your customer! The more times they order from you, the more likely they are to trust you with their email address, phone number, home address… basically all the information you need in order to reach them when your new product comes out (or if there’s a sale).
If you don’t have that information, though… well, then your customer will just have to find out about it on their own somehow. And that can be really difficult if they’re busy or distracted by other things.
With customer retention, you can use your marketing budget more efficiently—instead of pouring money into trying to attract new customers, you can focus on keeping the customers you already have. That means you can send them personalized messages based on what they’ve already done with your company, instead of just mass-messaging everyone with a generic “come back and buy something” message that no one will respond to anyway.
This can be as simple as sending out an email reminder when the time is right for subscription renewal or it can be as complex as using data analytics to identify patterns in customer behavior over time and then send them relevant offers for products that align with their needs and wants.
Word of mouth is the most powerful advertising out there. And since people are more likely to talk about their experiences with your product and tell their friends, it’s also the easiest. When someone raves about a product or service to their friends and family, it has a real impact.
Consider this: who do you trust more—a stranger on TV or your own friend? There’s a reason we say “word of mouth” and not “TV commercial” when we’re talking about getting the word out.
When customers stay with your brand, they’ll be telling all their friends how much they love your company. This can lead to new customers!
That’s why businesses spend so much time and money trying to foster positive experiences with their clients: because those positive experiences are what bring in more customers.
Once a customer is yours, they’re less likely to be swayed by competitors’ prices. They trust you, they like your product, and they’ve already invested time (and maybe money) in you. This means that when it comes time to buy something, they’re more likely to go with you even if another company is offering a lower price.
Valuable feedback is like a good friend—it helps you grow.
When you get useful customer feedback, it can help you identify problems that customers are having with your product. That insight allows you to create a better product and make sure that customer has a better experience the next time they try it, which will make them want to keep coming back.
When a customer tries your product and gives you feedback, that’s their way of helping you out. Think of their feedback as the gift they’re giving you that can help you improve your product and business.
If you want to succeed as a business, it’s important to keep your customers coming back for more. It’s a lot more expensive to acquire a new customer than it is to retain an existing one. But if you can’t retain your customers, then you won’t have any income in the first place! So the best thing you can do is keep those customers happy and coming back for more. And that’s exactly what customer retention strategies are for.
Here are examples of customer retention strategies that you can use to keep your customers coming back for more:
Customer surveys are the most common way to increase customer retention. A survey can help determine if there are problems with your service or product that might be causing customers to leave. It may also reveal the reason why the customer is leaving.
If it’s because of a service issue, you can take steps to prevent future problems. If it’s because of a product issue, you can fix it and continue selling that particular item.
Customer survey results can also help you determine what customers like and don’t like about your product or service. This information can help you improve your product or service to make it more appealing to customers.
Customer service is one of the most important aspects of customer retention. Make sure that your business has a system in place to handle issues and questions if they arise.
Customer service can be as simple as a phone number or email that customers can reach you at if they have an issue or question. You can also use a live chat feature on your website that connects customers with customer service representatives who can help them through their issues or questions.
If you have an online store, use a customer review system that allows customers to rate their experience and leave comments so you know what customers are enjoying and what could be improved.
If you don’t have the resources for a dedicated customer service team, try outsourcing your customer service. Many companies offer customer service services where you pay for the customer support that your business needs based on how many calls come in each month.
Personalization is one of the most important customer retention strategies. Personalization is the process of making a customer feel like his or her experience is unique and tailored to them specifically. Customers want to feel known and understood, so when you personalize the customer experience, you are showing that you care about them.
Personalization is often the most effective way to increase engagement and purchase frequency.
The more you know about your customers, the more you can tailor your communications and offers to their individual tastes.
This can be achieved through multiple channels:
If you’re in the business of selling products, this is a no-brainer. By offering subscriptions to your product or service on a regular basis, you can ensure that you have repeat customers lining up at your door every week. This strategy works well for food delivery businesses, clothing companies and many other types of businesses.
Subscriptions or loyalty programs are a great way to keep selling to your customers over and over. Subscriptions are great for products that customers use up and need to re-order, like toilet paper or coffee, while loyalty programs offer incentives for returning customers that they can’t get anywhere else.
There are many big names which have good examples of loyalty programs that have captured the hearts of millions—and for good reason. Loyalty programs allow consumers to reap the benefits of consistent purchasing and provide them with an incentive to shop at the same stores.
They can even help you indicate to your customers that you’re committed to their wellbeing: Take CVS’s program. It’s geared towards long-term beauty care, so it’s designed to make sure members get the most out of their personal care items while staying within their budgets.
It’s a win-win!
Pay per click advertising (PPC) is a great way to get your business noticed when you’re just starting out. However, it’s not enough to just pay for clicks. You have to make sure those clicks are converting into sales. The performance of your PPC campaign is an indication of customer satisfaction and by extension customer retention strategies.
Your keyword performance, location targeting, device targeting, and ad copy are all factors that contribute to the success of your PPC campaign. PPC Signal is a tool that can help you measure the performance of your PPC campaigns and make necessary adjustments to ensure customer satisfaction.
PPC Signal gives you access to essential factors such as location targeting, Device targeting, keyword performance, matrices etc.
The PPC Signal dashboard below shows how to select various filters for your campaign and PPC Signal will give you insights in form of signals based on those filters.
You can explore each signal of your focus point, have analysis on it and bring change according to the fixes needed.
Customer retention is key to a successful business. By using the right customer retention strategies, you can ensure that your customers are happy and continue to do business with you. Customer retention should be prioritized along with customer acquisition, as it is less costly to keep a customer than to acquire a new one.
You may want to start by investing in an advanced feedback collection process so that you can track how each of your customers feels at different points in their journey. Using this data, you’ll be able to pinpoint exactly what’s working and what’s not—and make changes accordingly.
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