When you’ve developed a winning product and established your target audience, it will eventually trigger a growth spurt and dedicating just as many resources to maintaining current customers as marketing decoy brings in, new customers.
And that’s what the customer engagement team is for to help the target audience find value in your product or service, and accomplish goals.
What is Customer Retention?
It is the process of retaining and engaging existing customers to spend more time on company products or services offered to them. Customer retention is different customer acquisition or leads generation because you’ve already brought the customer to your business.
What is the ROI (Return of Investment)?
Return of investment or as best known as ROI, is a business term used to identify previous and potential financial returns. A business would look into the ROI of an on-going project or future ventures to measure how successful a project will be.
Investing in customer retention can save you time and money in the long run and lead to plenty of possibilities for cross-selling and upselling when it is executed right.
Importance of Customer Retention in Achieving Maximized ROI
Every company needs new potential customers, and the most straightforward and most reliable source of new revenue is right under your nose: it comes from loyal customers. They already know your company and have experienced your service offered to them before.
Here are a few benefits of retaining customers in your business:
The conversion rates are much higher:
Existing customers will buy from you again unless they have a negative experience. You’ve already developed trust, and encouraged faith in your product, and even have potential insights on it, making it easier to recognize your needs and anticipate their decision.
Fewer Efforts in Marketing: Your business will spend less time and money, attracting potential clients and convincing them to buy from you – fewer expenses. It costs 16 times more to create a long-term commercial partnership with a new customer than maintaining a current customer.
Influences Better Revenue: Retaining customers means more income because they already have confidence in your brand and are more likely to spend more time using your services. The use of customer loyalty services to increase satisfaction dramatically enhances returns.
Better ROI (Return of Investment): Your existing customers have already proven that they prefer you over your competition and find value in what you have to offer. Keeping in mind that they remain your top priority and that you are committed to helping them thrive will go a long way towards enhancing ROI
How to supercharge customer retention to optimize ROI?
Create Content for Post-purchase Interaction
Content marketing is one of the tested and proven customer retention approaches that do an excellent job of reducing the churn rate and keeping your customers engaged after the initial purchase. Create content to remind your customers of the value they got from your service. It can also help explain the different uses of your products.
Understand the Challenges the Customers face
Even if you own the world’s best product, you may not know what issues it solves, as you probably won’t be selling many. Most importantly, you need to know which customers are most likely to gain by addressing the issues faced by them.
Encourage Word of Mouth
Never underestimate the importance of a peer recommendation. Getting a group of devoted and loyal customers willing to put in a good word will set you apart from your rivals and make all the difference in the final stages of the buying process.
Emphasize Customer Loyalty Program
Brand loyalty programs and consumer engagement channels are a great way to have a little extra boost for customers and keep them around. You can offer incentives for repeated visits or transactions. The user engagement platforms allow you to send personalized messages to clients wherever they are.
Ask for Feedback
Asking customers to provide feedback serves two distinct purposes. First, it makes your clients feel good, and you respect their opinions. Second, it gives you an insight into how you think and feel about your clients. Big surveys will be annoying to your customers. Therefore, sending an email that asks all of your subscribers to reply with their thoughts will go a long way.
Ultimately, retention of customers isn’t related to a particular decision you make. It’s the product of incorporating other acquisition and consumer interaction approaches to bring more consumers your side than your rivals. Customer retention is worth waiting for and can be the piece of the puzzle that will support the business for years to come if done correctly.