10 Proven Ways to Increase Customer Retention Rate
Last week we discussed how to calculate your Customer Retention Rate, this week we look at how that rate can be improved.
1. Improve the Onboarding Process
Customers do not grasp how to get the most out of a product, which is one of the leading causes of churn.
A business should ensure that the client knows the product’s significant features during onboarding.
Training sessions that teach users about the best methods and standardized workflows are great ways to do this.
Giving customers the proper tools to thrive can increase customer satisfaction and reduce churn in the long run.
2. Develop a Realistic Roadmap for the Customers
When it comes to creating and meeting client expectations, be realistic. Develop a meeting with new customers to plan a comfortable path for you.
You should include realistic milestones and attainable targets in the plan. The customer success team should view and act on the customer roadmap.
3. Use Customers’ Input
When it comes to customer retention, customer input is critical. The feeling of every customer regarding the brand influences the business’s success.
Companies must collect feedback from their customers. It can be done through customer satisfaction surveys, website feedback bars, or social media comments.
4. Consider Customer Experience
The customer experience mapping and customer journey mapping describe how they interact with the brand across all touchpoints.
The better companies understand the paths for purchasing, the better they can improve customers’ experience.
5. Use Social Media Strategically
Most customers want immediate and personalized service, and social media plays an important role here.
Social networking is an excellent tool to resolve potential customer service issues or questions.
It is also a fantastic approach to building a cohesive and integrated consumer experience.
6. Group Customers
How a company gathers data and then acts on it is critical to its success. Based on how they interact with the business, sales CRM software typically divides prospects and customers into groups.
Businesses can use these facts to personalize marketing campaigns to their customers’ and prospects’ particular levels of awareness.
When retargeting, email segmentation is the key to getting the appropriate information to the right people at the right time.
7. Send out Automatic Emails to Encourage Inactive Users
Keeping consumers and potential clients active as possible is a proven way to increase the customer retention rate for businesses.
If a user has not been active for a long time, an automated email or a message on social media sent through a CRM system can persuade them to act.
If you track how users engage with a product and discover that they have only used a tiny portion of the features, sending them an email describing how to use the remainder of the functions can pique their interest.
Educational content, such as complete guides or successful case studies from other clients, could be included in emails and messages.
Remember that sending many automated emails or messages to customers irritates them, especially those already familiar with the product.
8. Upsell to the Customers
Upselling loyal clients is a terrific method to increase customer retention. As a result, they get more invested in the brand when you persuade them that a premium or improved service is necessary.
Existing content assets, as if as eBooks and whitepapers, are another proven way to remind existing consumers about all of the things the product has to offer while also keeping them engaged.
9. Develop a Customer Loyalty Program
A customer loyalty program is a beautiful approach to giving back to customers while also allowing for the development of a personal relationship.
One compelling justification for using customer happiness as a KPI is that it makes recognizing customers more likely to churn easier.
Before a user churns, there is usually a slew of warning indicators, one of which is the degree of activity. For example, the company should investigate why a customer has not used the product in 30 days.
Some companies use a traffic light system. Users that are happy with the product and are unlikely to churn are shown in green.
Amber is allocated for users who may have an open issue that is not life-threatening. The colour red is reserved for users at high risk of churning.
It could be due to a severe complaint filed against the company or just because they have expressed their dissatisfaction.
10. Consider a Referral Campaign
A referral program can encourage satisfied consumers to suggest to their friends and family and improve client loyalty.
You can significantly improve the number of new signups while engaging the existing customers by offering credits, upgrades, or other bonuses to existing clients.
Turning most devoted customers into brand ambassadors strengthens their emotional attachment to your company, increasing retention.
Customer retention is one of the most effective ways to drive sales and grow business. Although the customer retention rate formula is firm and stable, improving the rate can feel more like an art and takes a lot of experimentation.
Driving customer retention rate comes down to creating a positive customer experience and having strong communication with customers. So now it is your turn; how to calculate customer retention rate, and what is your customer retention rate?