January 30, 2020

Marketing

Customer Retention

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.

After we purchase something, there are a number of emotions that we experience. It could be the excitement of something new, or potentially anxiety or concern for whether we’ve made the right decision.

Post-purchase communication is an essential part of a customer retention strategy. Don’t miss your opportunity to turn one-time customers into loyal, repeat customers.

It can cost 5-25% more to acquire a new customer than retain one.

Increasing retention rates by just 5% could help increase profits by anything from 25% to 95%.

The probability of converting an existing customer is 60-70% compared to 5-20% for a new customer.

Show You Care

Show your customer that you value their custom by saying thank you.

This can easily be done a number of ways eg through a phone call in conjunction with the review request email, or on physical card when they unbox their new product.


Offer "How To" Guides and Advice

You want to ensure your customer enjoys their purchase. A simple guide can reduce the risk of a frustrated customer. By giving them advice, you can also help them prevent their purchase from wearing out too quickly.

For example:

Aarn Body Packs. The set up of their body packs can be confusing for a first time user. To help their customers, Aarn has a video tutorial on their YouTube to help customers personalise the Body Pack, making the pack more comfortable and work the way they should.

Reminders

It can be as basic as an automated email or postcard sent to customers when their product is about to run out, or their product needs maintenance. This simple attention to detail can really improve the customer experience - customers will view you as dependable and trustworthy.

For example: A heat pump should be serviced yearly, so a simple reminder to customers that their service is due, instantly increases customer retention. These sorts of things can be automated through email systems to reduce time and cost.

Complimentary Products or Services

Playing on the power of convenience.

Recommending a product or service that’s relevant to a customer is a simple way of showing that you understand their needs.

It also increases the order value by instigating an addition to their purchase.

Loyalty Programs

There are so many variations of loyalty programs out there, but the best ones understand, reward, engage, and retain customers.

Loyalty programs can be as simple as a “buy 9 get the 10th free”, or a more complex one like Air New Zealand’s with a range of membership levels.

How many of you have Airports or Flybuys?

All retention comes down to one thing: happiness. If people are happy they will become repeat customers. If people are unhappy then you won’t retain them.
If you need any help with the above suggestions, or you want to know how to fit in with your overall marketing strategy get in touch.