14 Proven Strategies to Improve Your Customer Retention
Updated: Dec 28, 2019
Successfully maintaining a customer relationship is a key factor in growing your overall business. Why is that? Because it costs much less to retain an existing client than acquiring a new one. According to research by Harvard Business Review, improving customer retention rates by 5% can actually increase your business profits by 25% to 95%. And the opposite is true as well. Think of a business with no focus on customer retention as a Jenga tower: you hope to build it while knowing you’ll be losing key foundation pieces along the way. The results are inevitable. So let’s delve into what customer retention actually is, and what strategies you can employ to improve your own:
What is customer retention?
Customer retention refers to any action undertaken by a business in order to maintain and foster its relationships with existing clients. In concrete terms, it’s the science of making sure that customers are satisfied and will come back to spend more money on your products or services. Customer retention should be at the core of any sound business strategy, as maintaining your existing customers is faster and, on average, costs 5 times less than finding new ones (according to Invesp).
How to improve your customer retention
Here we’ll provide you with the best, most effective customer retention strategies that will help you grow your business.
01. Make it easy for people to reach you
When customers reach out to you, they usually want answers. And they want them fast. The best way to cater to your customers is to provide solutions on multiple channels. This way, you’re covering each and every one of the zones of contact you can have with your customers. This entails being able to respond to emails or phone calls, as well as being present on social media or live chat. Choosing a customer service software that you can trust to cater to your clients’ needs as best and efficiently is an important consideration. Wix’s own help desk software is created in such a way to provide support to customers from multiple channels all through one system. You can embed a handy widget into any part of your website to let customers access articles, tutorials, or your entire help center in just a click.
02. Provide quality customer service
Good customer service is one of the most important pillars of customer retention. A study by Kolsky shows that 66% customers switch brands due to bad customer service. So how exactly do you go about it? A key factor in providing excellent customer service is showing your customers that you are there for them by listening to their concerns. Frustrated customers want human interaction more than anything. If your customer service reps respond robotically, sticking to the support script, your users will perceive this extremely negatively. It’s important that your clients understand the person behind the screen is human, too.
In addition, excellent customer service starts with a robust help desk and the customer representatives behind it. When looking for customer representatives to join your team, make sure you prepare a thorough list of customer service interview questions and conduct conversations with prospective candidates. In addition, an in-depth customer support training should help new representatives understand the messaging, tools and techniques that your company employs. If you’re looking for more guidance, have a look at this informative article for more detailed list of customer service skills that any good representative should have.
03. Educate your clients
Education is a known marketing strategy in which a business shares extensive knowledge with the purpose of building trust with customers. And what does trust lead to? You’ve got that right: loyalty. If a customer is interested in purchasing your product or hiring your services, they surely want to know more about it and how to use it effectively. But instead of your customers coming to you for questions, why not let them help themselves? A knowledge base software can help you achieve your goals. It’s a sort of self-service tool in which users can solve issues without the help of an agent. This way you can lower the amount of support calls you receive and provide seamless support for your products and services. Use your own ticketing system to understand what your customers’ main concerns and question are, and create insightful and informative articles based on these topics. On top of this, your knowledge base can be turned into an internal educational platform, to make sure your support representatives are fully trained on your product and services. A win-win situation for all.
04. Create a community
Social media channels, forums and blogs are a great way to create a community around your brand. These channels give people a more direct communication line with your business, and allow you to connect and engage with your audience in a more eye-level and authentic way. Community is an active ingredient in user engagement as people feel they are part of something bigger. Engaged members tend to be more loyal to your brand, and can even become your best ambassadors, bringing more people to the group. All social channels are great community creators, so those are great places to start. In addition, having a blog on your business website is another channel for sharing information with your loyal subscribers. Anything from product updates, to user testimonials to ‘behind the scenes’ footage of the office are great ways to let your customers in on your company action.
05. Be transparent