4 Customer Retention Programs to Implement in 2018
In an increasingly saturated market, customer retention is more important than ever. After all, it’s all well-and-good to attract a client to your brand with a bright shiny promotion or a flashy website, but keeping them is another thing altogether. This is where a powerful customer retention program can work wonders to not only keep business, but to attract new customers.
Of course, a customer retention program is going to cost money off the hop, but considering your clients will stick around longer, your revenue and profitability will dramatically increase. In fact, increasing customer retention by a mere 5% can bolster profits by up to 95%. That’s a big pay-off for a little effort on your part.
And it is only a little effort. Customer retention programs come ready made and while the best are highly customisable to suit your needs, they require precious little effort on your end.
Like we said, thought, the market is saturated, and the market of customer retention programs is no exception. Wading through all the possibilities can take more time than implementing the program itself. Spare yourself the effort and read on. Here are the customer retention programs you need.
1. An Onboarding Program
Getting your customers on board is the first order of business. This means getting someone who is not a customer to become one. A solid on boarding program will showcase your brand’s unique offering to the customer in such a compelling way that the will feel not just happy, but relieved to have finally found your product or service. What’s more, your on boarding program will make customers feel welcome: it will immediately begin the lifelong process of forming a relationship with that client so your customers will be engaged and loyal to your brand.
2. The Follow-Up
Business is all about relationships, and like any relationship, you can’t just woo a person and expect them to stick around. You have to keep the love alive. Studies show that caring for the clients you have is more profitable in the short-term and long-term than aiming for the clients you don’t have.
The difference between most business relationships and most romances, however, is that businesses relationships are with more than one person, so following up with everyone can be time-prohibitive. What to do?
Follow the Pareto principle, which states only about 20% of your customers will makeup 80% of your profits. Then, bring on Customer Relationship Management (CRM), which will give you data on which customers are likely to give you the most revenue. These are the customers you should give your most attention. A great customer retention program will know this, and offer robust and agile CRM solutions.
3. Risky Client Protocol
Again, you’re going to use the power of CRM software to help identify the clients who are considered ‘risky’. These are the ones who are calling in with complaints, have sporadic buying patterns, or don’t often follow through on purchases. Reach out to these customers and listen to what they have to say: address their concerns, help them become more knowledgeable about your product or service, and you’ll be less likely to lose them. Remember: it’s cheaper to keep the customers you have!
4. The Woo Back
Companies lose customers. It happens. That’s the bad news. The good news is there is nothing to lose by trying to win them back. After all, they’re already gone. Research shows that you have an up to 40% chance of reselling a former client. Your likelihood of scoring a new client? As little as 5-20%. The odds are in our favour.
The best customer retention programs capitalize on the fact these lost customers have already shown a need for your brand. Now, all you have to do is entice them back with more extravagant promotions and offers. And sometimes, all it takes is a little of your time: show them you’re there, and you’re listening.
This is a lot to implement. Most companies don’t have the knowledge or skill set to do it with their inhouse talent. So outsource. The best customer retention programs will help you with all these steps. More than help: they’ll do it all for you in a way that is brand-specific, but not exhaustive. You already know why you need to implement a customer retention program. Now, do it.