If you weren’t aware already, let us tell you that it’s more expensive to get a new customer than to retain an existing one. Many brands fail to recognise how customer retention is the most powerful and underutilised strategy in the business world. Besides supercharging benefits, customer retention leads to many more profits and opportunities for new clients. But many business elements can be improved by a high customer retention rate.
Happy customers are loyal customers. Every business that relies on revenue needs to attain and retain its customer base. When a consumer no longer purchases a service or product from a company they are considered lost business. Customer acquisition is likely a monumental challenge to young startups, small and medium enterprises. With the process focusing on marketing, which is primarily communicating with or attracting new customers through targeted messages. For a brand’s long-term success, it’s important they create a positive and communicative environment. This gives customers the freedom to speak their minds out and effortlessly.
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Key Strategies To Establish Customer Retention
1. Bombas: Define Your Brand Vision
Bombas, an apparel brand, has a partly philanthropic mission. They donate an item to those in need for every item sold. A clear set of values, including social responsibility and care for communities, are built into the firm. For people to buy into a brand’s vision, its mission, core values, and story must resonate.
2. Amazon: Focusing On The Customer Experience
The Amazon Prime membership stage has incredible retention rates. The e-commerce giant’s loyal prime members also spend a whopping $1400 on average, or more than double the $600 a new customer usually spends. Buyer personalisation and customer data points tracking save the user time and aid navigation through the site.
3. Nestlé: Monitoring And Improving Based On Customer Feedback
The best people who can tell you how to preserve customers, after all, are the customers themselves. This is a no-brainer. Nestlé, with Nestlé Waters North America’s Consumer Engagement Centre, monitors its social media activities and looks at online communities and their feedback on Nestle’s products and services to improve them.
4. Starbucks: Create A Rewards Program
The world’s largest coffee chain, Starbucks, employs a reward program which varies from country to country as it is tailor-fit to the preferences of its customers. This has obvious value, enabling a brand to track its customers’ purchasing habits.
5. Apple: Creating A Space To Engage With Your Company
Apple’s physical stores across the globe are pure architectural marvels; the company uses its retail space to strengthen its name. Apple stores are where you can experience a product, and the company’s design values, buy a product and get them fixed. Customers are likely to purchase products in the future from the same company only if they have an enjoyable customer experience.
Our View
Retention and turnover are two critical concepts for analysing business and employee relationships. They can help brands understand their workforce’s satisfaction and evaluate their culture’s strengths. In a sense, customer retention is the opposite of customer turnover. A brand can minimise customer turnover and keep itself on the growth path by putting a sound customer retention strategy into effect.
Consumer attrition is one of the worst things that can happen to a company’s health. Granted, some turnover is inevitable, minimising this central factor will undoubtedly mean the difference between a successful business and a failed one. At the end of the day, a firm must fulfil its consumers’ needs, listen to their complaints and provide professional solutions. Buyers will become increasingly loyal to your brand if they feel valued.
