The Ultimate Customer Retention Strategy Your Company Needs to Be More Cost-Effective

by Chris Arringdale Customer Success, Proactive Solutions

Customers – a company’s biggest asset. Without customers, your company would fail. Many companies focus on the idea of obtaining more sales and increasing their customer base while forgetting how much of an impact their current customers have. Acquiring new customers costs five times as much as retaining existing customers. After putting your time, effort and resources into securing new customers, retaining them can ease the burden of searching for new ones, while saving your company money at the same time.

Let’s take a look at a few ways your company can improve your customer retention strategy:

Promote Your Mission

Your company mission is the driving force of your business and should be built around something that people care about. Promoting this mission inspires loyalty by showcasing what your company stands for, and allows customers to make a personal connection if they share the same values.

Knowing the mission also encourages leaders to prioritize what matters most to customers and employees in its business strategies, bettering the company and its products or services. This sets the business on the path of long-term success.

Build A Relationship

Customers can leave a company for any number of reason and the first step to building a relationship with the customer is to manage any unrealistic customer expectations. The customer will recognize the value of your product if you focus on achievable goals from the start of their journey. Eighty-eight percent of consumers want to engage with brands that are setting new standards in meeting their expectations.

To establish a strong relationship, you must know your customer. Understand your customer persona and the way they want to communicate. Whether through email, phone calls, or social media channels, be sure to leverage personalization. Exemplify the personality of your brand and avoid canned responses. Your human employees should never be mistaken for robots!

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Building a relationship with your customers is what sets off the success of your company. Increase the trust your customers have with you and your company by building relationships. When customers trust a product/company, they will recommend it to others and continue to use it. Customer spend grows alongside trust in a relationship. Ultimately, loyal customers spend 67% more than new ones.

Provide Transparency

Providing transparency to your customers through their journey and every communication channel will prove to your customer you can be trusted and what you are saying is actually what you mean. Ninety-four percent of consumers say they’re likely to be more loyal to a company which offers complete transparency. Gaining their trust through transparency will reassure them you are doing everything in your power to meet and exceed their expectations. Transparency will enrich a feeling of understanding which will result in customer retention.

4 ways to provide transparency to your customers:

  1. Be upfront about your company, what it stands for, and the product you provide.
  2. No one’s perfect. Show your vulnerability and be honest.
  3. Identify issues your customers may have. Learn where you would benefit from being more forthcoming.
  4. Actively ask for customer feedback and opinion.

Collect Feedback

Actively listening to customers and the feedback they provide is an important factor when you’re trying to increase your customer retention. If you never ask your customers for their feedback, you’ll never understand what drives customer satisfaction. Without knowing what the driving factor of customer satisfaction is, customer loyalty will be impossible, resulting in churn.

So, what’s the best way to collect customer feedback? The most strategic and efficient way to gather and implement customer feedback is the ACAF customer feedback loop.

    • Ask – ask customers for feedback on the product.
    • Categorize – place feedback into categories.
    • Act – share the feedback with others in your company.
    • Follow Up – follow up with customers who provided the feedback.

By keeping track of your customer’s voice and taking action on any issues or problems, you give your customers another reason why they should remain loyal and stick around. With Kilterly, you’ll receive unlimited feedback from your customers through our customizable survey builder.

Reward Referrals

When done well, referral programs can not only attract new customers but also help you retain current customers. The key is to make sure your referral is one that complements your brand while meeting your customers’ needs. Programs can include:

  • Reducing costs for both the referrer and the referred party
  • Reward points programs
  • Free products, upgrades, or other exclusive offers

When customers are encouraged to refer a friend, and the rewards are worth it, customers become advocates for your brand and are able to reach customers that may not have otherwise known of your company. Forty-nine percent of U.S. consumers say friends and family are their top sources of brand awareness.

Referred customers also show improved loyalty than those that come through other marketing methods, as indicated by a 37% higher retention rate.

Map A Customer’s Journey

How do you know what your customers really need or what they’re looking for? The best way to get into your customer’s mind is to take a step in their shoes. A step, or maybe even a few, on the map of their journey.

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Customer journey mapping is a story designed to provide insights into the customer’s journey. But let’s get one thing straight, it’s not going to provide a 100% real experience, just a visualization of the customer experience. When mapping a customer’s journey, carefully map each touchpoint that lays out every stage of the customer experience.

When reviewing the stages your customers go through on their journey, ask yourself a few things:

      • What the customer is doing at each of the stages you have drawn out.
      • What is stopping your customer from moving to the next stage?
      • Does your customer have questions? Any uncertainties? Problems finding answers?
      • What obstacles does your customer face at each stage? (Anything that might cause them to give up and find a different company.)
    1. The journey doesn’t end when the customer buys the product or signs on for service. Long-term support will help prevent that customer from abandoning you for a competitor, especially if that competitor can ease pain points which you are failing to ease.
    2. A high-value item for your customers is continued education. By offering webinars, lunch and learns, training videos, or conferences, customers are able to grow their knowledge and skills and will rely on your business as a pillar of support. Making some of these opportunities exclusive to current customers can also improve engagement.

Your current customers know your product, know your company and appreciate the experience you provide them. You’ve already put in the hard work of capturing them, so don’t let those efforts go to waste. Focus your time and energy on improving your retention strategy and hold onto those loyal customers.

Trying to build the ultimate customer retention strategy, but unsure where to start? Walk through a free demo and see how Kilterly can get you back up and running again!

Post Updated on May 10, 2019.

worker taking notes on different customer metrics

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