“Retention problems are creeping up on you. You need to actively monitor the retention cohorts, even as retention rises to the right. “- Dan Wolchonok, former Director of Growth & Analytics at Hubspot
Customer loyalty are the activities and processes with which a company increases its regular customers and keeps them over a longer period of time. It measures how many customers a company can retain from the entire customer base for a given length of time.
Brands expect 200% higher market share opportunities who spent more on retention marketing.
According to a surveyThe maximum growth is driven by customer loyalty, followed by acquisition and other parameters.
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Customer loyalty is not a single activity; it is a tight-knit parameter in all of your marketing efforts. For example, understanding churn at different stages of the conversion funnel is important to understand the existing gaps in your loyalty strategies.
In simple terms, once a company starts addressing the issues that are driving churn, it will ultimately increase customer loyalty. Customer loyalty not only speaks of positive customer experiences, it also multiplies your acquisitions. According to the Harvard Business Review 23% of customers who had a positive brand experience shared it with more than 10 people.
In fact, when customer loyalty increases by 5%, profits increase to 95% Bain & Company.
The impact of retention rate as a metric varies by industry.
For example, after researching the ed-tech roomOne in four founders believes that customer loyalty is the primary goal to increase sales.
Similarly, message platform retention rates can have a direct impact on time spent on the website and overall traffic.
How retention helps companies:
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How do companies improve their retention metrics?
Build a better customer experience
Build your customer experience that offers solutions to your users rather than more hassle. The first and most important step is that Onboarding process as simple as possible.
Lock in Live chat Options on your website and keep your response time as short as possible. According to Freshchat, you’ll keep yours first response time less than a minute is idle time. The customer’s expectations are between 6 and 15 seconds.
According to Martech consultant48% of customers return to a website that has live chat. You can use drift for live chat and improve your customer experience and ultimately improve marketing metrics for customer loyalty.
Build yours Home page That gets your users in the right direction. Providing the right product information for engaging product manuals is just one of the many parameters to focus on in order to build a positive customer experience.
Ask for feedback from your customers. Customers feel valued when their feedback is taken into account in future decisions and helps the brand grow. Recognizing your customers improves the customer experience.
Go one step further
Your current customer base is the reason your company exists. Failure to engage with your existing customers can affect the overall growth of your business and increase customer churn over time.
On average a business loses 20-80% of customers every year due to negative customer relationships.
Improve communication with your customers and personalize it. Today brands use push notifications, email, and social media to build relationships. This is nothing new to us. However, it is important how brands organize their communication in a timely manner.
One such case is OffCampusJobs4u. This job portal has increased its customer loyalty by sending regular push notifications to its numerous users.
Make your user communication fast and reach your user’s devices directly. You can use free tools like Truepush to send push notifications.
Create and improve customer loyalty programs and reward your loyal customers. Send them rewards using push notifications. You can include personalized discounts to make them feel special.
Source: Invensis
A survey from Deloitte shows that only 3% of customers represent a brand based on values and principles, while 44% of customers recommend based on emotional criteria such as happiness, compassion, etc.
Personalize Your email marketing campaigns and provide information your users look forward to. Reach your customers who are in the ToFu phase.
For exampleDropbox is aimed at customers who have just signed up and will not continue with the integration.
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Make a clear CTA for retention emails and contact the customers currently logged in who have not carried out the next integration step within three days.
Add Follow-up phases to your automated email campaigns. That way, you can focus on spreading equal retention efforts across different marketing activities.
You can use tools like sender for email marketing. It offers a free plan for Up to 2500 subscribers and up to 15,000 emails / month.
When it comes to Social media marketingBuilding an effective communication strategy is critical. These are some statistics based on social media usage around the world.
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You can use social media management tools like HootSuite, buffer, SEMrush, etc.
There are many metrics you can track for high social media engagement:
- Traffic
- Audience / Follower Growth
- Engagement rates
- Range / impressions
- Remarks
- Tags / untags
- Conversions
Build a community from your users to connect with them on platforms like Telegram, Facebook Group, WhatsApp Group and more. The more you mark your presence with your customers, the more likely it is to keep them. But make sure that you are not pushy.
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In another exampleStarbucks has a popular and acclaimed customer rewards program. Their program helps customers earn free food and drink, place and receive orders, and receive personalized offers.
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Your best customers don’t just use your product or service once. But become your regular customer and stand up for your brand.
Other than these strategies, you can focus on understanding your past customers.
Email them when they leave as customers will know what works for them and what doesn’t after using your products and services.
Analyze why they left your company. This data will help you further correct and refine the brand goals and give you another chance to retain your lost customers with better and updated offers.
Conclusion
Customer loyalty doesn’t improve overnight. In this article, we understood how a company can continuously improve its customer loyalty strategies over a period of time.
There are myriad parameters that can be considered when retention is the goal. However, you can break this down into two important aspects that will improve your customer experience and build better customer relationships.
Instead of putting all of your efforts into acquisition, you should focus more on retaining existing customers.
Run and improve customer loyalty programs so that your customers feel valued and encouraged through feedback and exchange of views.
Know your customers first. Determine what they need and want and where their pain points are. Find ways to surprise, delight, and motivate them. Your existing customers are giving you a good chance to grow your profits as they are more likely to buy from you if you give them the experience that matters.
register to Truepush and keep your website visitors for free.