You walk into a new business, download a new app, get a new points system or loyalty program, and lose track of most – if not all of it – immediately after you walk out the door. As a consumer, this is time-consuming and irritating. As a business owner, it could be costing your business anywhere between 25%-95% in additional annual revenue.
In a moment, I will show you five easy to implement strategies that your business can use right now.
Simply put: If you want your customers coming back through the doors of your business more often, you are going to want to read on.
Let’s jump into five ways you can increase your customer retention.
#1) Create a Smooth Customer Experience
If you have ever purchased something from Amazon, you are familiar with their “one-click buy” option. With the advent of the “one-click buy” option, Amazon found that if their customers clicked only one more button or diverted to a different landing page, conversion rates decreased significantly. If they forced customers to click on a third button, conversion rates dropped off a cliff. Amazon created such a frictionless experience that it became a hassle for their customers to shop elsewhere.
By having a smooth, easy-to-use, and contactless digital payment option, your business can create a pleasant, more enjoyable experience for your customers. If your customer can use one application to access all their points, rewards, and loyalty programs, they will enjoy buying from your business more and spending their hard-earned money with your business.
#2) Top-Notch Customer Support
This is a win-win. When your customers feel heard, you gain their trust and continued business. When your customers provide feedback, you get a look at your business’s blind spots. When your business puts its customers first, your customers put your business first. A great way to show your customers that you genuinely care is to sit down with them when they have concerns. People want to do business with brands that make them feel good. To be utterly cliché, I will quote Maya Angelou.
“I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.”
Utilizing messaging tools that allow for a personal touch will make your customers feel like they are your top priority. With a customer-first approach, this is the emotion you want them to feel, so that they will be saying to themselves, “We will definitely be coming back for more”.
#3) Get Your Customers Excited!
Scarcity, Urgency, FOMO (or Fear of Missing Out). Combine any of these powerful emotions with a promotion or discount, and you are cooking with grease. One of the most powerful groundbreaking tools available through Wallet Inc is their dynamic voucher. With the ability to bring customers through the doors on demand you will find that you’re able to create an even deeper customer relationship that will lead to more sales and an overall healthier business.
#4) Meet Your Customers Where They Are
How many emails do you get daily? Maybe a better question is how many emails do you ignore daily?
According to Mailchimp, the average email open rate – across industries – is 21.33%. The average click-through rate of those campaigns is only 2.62%. Now contrast that with the 98% - 99% open rate of text messages and an incredible 29% click-through rate according to Textedly. Additionally, 85% of emails are considered spam and have an average response rate of 90 minutes. SMS messages, however, are considered spam less than 3% of the time and boasts a 90 second average response time.
It’s no secret that people are on their phones a lot. Even though we all have access to our email on our smart devices, SMS continues to be king. Your business can send fewer messages (1-2 a week) and see greater customer retention by meeting your customers where they are.
#5) Make Your Loyalty Program Visible
Jump on Reddit, look at FAQs, or ask your customers. People think businesses are trying to hide their rewards or make redeeming those rewards so complicated that you won’t use them. Of course, that is not the case. Why would your business, or any business, offer a loyalty program if they did not want to increase their customers loyalty?
By putting your loyalty program in one centralized location (say like a digital wallet), you make your promotions more accessible to your customers. This makes them feel like you want to thank and reward them for their continued business. The principle of reciprocity, or the idea of returning the favor, suggests that when you do something for me, I am more likely to do something for you. When you give to your customers first (without expecting anything in return), they are much more likely to give their business to you.
When you make that process easy and fun to use, your customers will be thanking you while giving you their business.
Conclusion
Customer retention and a reliable stream of revenue are critical to your businesses. When your business makes life easier for your customers, they notice.
When your customers 1 – find your systems simple and easy to use, 2 - feel like they are your top priority, 3 – are excited by your offers, 4 – are met where they already are, and 5 – can easily access and use your loyalty program, customer retention will become second nature to you and your business.
Sources:
https://www.invespcro.com/blog/how-discounts-affect-online-consumer-buying-behavior/
https://www.invespcro.com/blog/customer-acquisition-retention/
https://www.invespcro.com/blog/do-loyalty-programs-work-whats-their-impact-on-customer-retention/
https://mailchimp.com/resources/email-marketing-benchmarks/
https://blog.textedly.com/email-vs-sms-marketing-when-to-use-which
