It can be 25 times more expensive for a company to acquire a new customer than to retain an existing one. As a bonus, retaining a customer can also require less time and effort.
In order for this to happen, an effective strategy needs to be in place. One that regularly rewards your current customers.
We’re going to take a look at five of the best sure-fire ways to encourage repeat business so that your company has loyal customers.
1. Implement a loyalty program
If you want the same customers to keep coming back, you need to do the basics. And the basics means giving them exactly what they want.
One of the ways to do this is through a loyalty program. However, what’s key here is that your customers’ tastes, needs and preferences are evolving, and they now want to see a bit of innovation from your loyalty program.
For example, 55% of millennials (who will likely make up the core of your online demographic) want your loyalty program to surprise them as they move through the customer journey. This means thinking outside the usual “points” box and experimenting with the likes of interactive games.
Points are still effective, but as the same report suggests, customers are now becoming frustrated with how long it takes to redeem them.
Moreover, 32% of customers also say that the security of their personal information is a worry when signing up to a loyalty program. These are all things to consider, but the main point is that loyalty programs do work and you need to implement one.
2. Offer a personalised experience
It’s 2018 and Artificial Intelligence (AI) is no longer the preserve of science fiction. While your customers might not know what AI actually is or does, they see its effects all the time. AI is able to crunch vast amounts of customer data so that it can personalize the customer experience – and this is exactly what your customers want.
A personalized experience means you tailor everything– from content to recommendations to emails – to a specific customer. Using machine learning (a form of AI), small businesses cut through the noise and give the customer more of what they want and a lot less of what they don’t. This can boost conversions, sales and retention.
3. Make the right first impressions
First impressions are absolutely fundamental to customer retention. If this “relationship” gets off to the wrong start, they won’t come back.
Creating a strong first impression means covering every single aspect of the customer journey, from a professional-looking website to a solid landing page; from a personalized ‘thank you’ email to providing a clear point of contact.
It also means making sure that your customers are kept informed with every step in the delivery process. If there is a delay, make sure you let them know as soon as possible.
Cover other areas, too. Improve your customer service with a live chat feature. Add a POS card reader to your website so that your customers can see that you offer a seamless and flexible payment system. Cover everything so that your first impression is powerful and lasting.
