Loyalty is delightful in every aspect. A loyal customer is a way more valued and worth the effort than a one-time bulk buyer. Which is why it is imperative to focus on repeat business than choosing to constantly acquire new customers.
Well, most companies emphasize on acquiring customers more often which in turn involves huge costing, ending up having lesser profits and making higher investments. Although growing your customer base is important, here planning your budget can be the key to have a better ROI. However, acquiring new customers is considered relatively easier than retaining the ones who are already a part of the community.
Why retaining customers is more profitable?
There isn’t a preset metrics to show the profit graphs but, stats prove that loyal customers tend to buy more frequently and recommend to a larger group of people post their satisfactory purchases. Brand Keys found that customer attraction costs 11 times more than retention. Increasing loyalty by just 3 percent could shave 10 percent off the marketing costs.
How to retain customers?
Though the entire process of retention depends on how you wish to carry the same, here are a few tips to let your customers stay with you for long!
- Loyalty Programs for Customers
Having a customized loyalty program for your long-associated customers can be the most lucrative option to keep them gripped with your brand and shop even more. Customer loyalty solutions let the customer keep their trust in the brand and ultimately refer their contacts more than one-time buyers or window shoppers.
- Understand the Obstruction
If you’re running low on customer base and nothing seems useful in the way, try to understand what’s obstructing your brand to reach the desired customer base. You may have a careful look at the journey, find out the loopholes and try to fix them sooner possible. In most cases, mere factors like odd hours push notifications, non-availability of products and poor market analysis leads to the decreased customer base and low retention rates.
- Think about Long Term Loyalty
Loyalty is time-consuming. You are required to remember that traditional loyalty methods aren’t enough for gripping the customers with a brand, you need to come up with a few engaging ways to let your customers stay loyal to your brand. Currently, most businesses follow a creative approach to promote their products and services which brings them ahead of the competition letting them engage more customers than the rest.
- Set up ways to communicate with your customers
Frequent communication with your clients keeps you up-to-date and allows you to pass significant data on. Take the time to set up a database that contains contact data such as email addresses, email addresses or phone numbers. Then you can send friendly reminders, birthday greetings, or a monthly newsletter.
- Consider different payment plans
There are some companies out there that are very seasonal and in certain times of the year run into cash flow problems. For example, during the summer months when marriages are in complete swing, a wedding store generally gets most of their revenues, but they struggle during the winter. One store decided to offer a payment scheme that would allow clients to begin shopping in the winter and pay a little over the months leading up to the wedding instead of charging all at once.
Engaging customers isn’t an easy business to do! Identify, analyze and implement the appropriate option to let your customers stay loyal with your brand.