The stages may vary depending on your industry. For example, the recognition stage may be the first interaction of a customer with your business. The recognition stage is when the customer becomes aware of your business and she starts to form a relationship with your business. So, the next essential steps for the business owner is to make her customers recognize your business, prefer your business, purchase from you, go loyal, and then advocate for you.
Like to survive in the increasingly competitive e-commerce market, firms will have to find new ways to attract and retain customers. Customers are demanding a more personalized, convenient, and tailored experience, which is driving a shift in the way companies are managing their relationships with their customers. With the rise of new technology and shifting consumer expectations, companies will have to move beyond traditional customer retention strategies.
Anticipated Problems That Can Affect Customer Retention
A customer who remains loyal to a brand and continues to purchase products is referred to as a ” retained ” customer. When a customer takes no action (e.g. fails to repurchase, switches to a competing brand, etc.), they are said to have been “lost” for that brand.
It has been estimated that the cost of retaining a customer is anywhere from 15 to 25 times cheaper than acquiring a new one.
In the past, customer retention was based on simple things, such as repeat orders and loyalty programs. But consumers are changing, and customer retention strategies need to change, too. There are lots of things that affect the customer retention, such as the good customer services, the higher product quality, the wider product range, the fast delivery, the loyal discounts, the good after-sale service, the personalized customer services, the customer satisfaction survey and so on.
How to Use Customer Retention and Data Analytics in Increasing Customer Loyalty?
As per stats, the amount of money spent on customer retention will grow by more than 10x in the coming years.
The growth of this industry will be driven by rising customer expectations, a lack of customer loyalty, and increased awareness of how the customer experience impacts business operations.
a. An easy way to calculate average annual costs for retaining a customer by dividing annualized customer retention cost (e.g. customer retention cost for the last quarter x 4) by the total number of active customers.
b. To calculate the total CRC, multiply the lifetime average of a customer by the CRC per customer.
Orchestrating All Customer Touchpoints
In any business, the cost of getting a new customer is much higher than the cost of keeping an existing customer. The cost of acquisition is anywhere from 5 to 25 times that of customer retention.
The problem with customer retention is that, in many cases, the customer is not aware of how much you are willing to go to keep them. They might not know that you are willing to give them a free upgrade if they refer another customer or that you are willing to reduce the price of your product if they opt-in to a service upgrade.
The trick is to find out what your customers want and then do everything in your power to give it to them.
Take the Bull by the Horns: Stand Out in Customer Retention
1. Determine Your END user Segment: Targeting the wrong user segment will only lead to churn, so make sure that you have a well-defined insight into your users and they’re their unique pain points before you begin targeting them. It can be difficult sometimes, but as your target market grows so too will your product!
2. Establish Customer Onboarding Strategy: Customer retention is a subject that has been talked about for a long time, but it still remains a big area of opportunity. When it comes to customer retention, the main focus is on retaining current customers, rather than attracting new ones.
The idea is that if you can retain your current customers, you are making money by not having to go out and find new customers. The problem with that is that it is very difficult to get noticed in the current market and you will still be competing with other companies.
3. Communication is key: Make it a point to interact with your customers regularly. Create an effective platform together with your target customers by communicating to them via email, social media, newsletters and automated calls. Utilize a cloud-based telephony platform to personalize customer experiences and build employee communicational bridges.
Trust DialDesk Effective Cloud Telephony solutions to reduce churn and boost the revenue of your business.
4. Build Engagement Avenues: When we think about the world of customer retention, only one word can come to mind: engagement.
There’s no way that a business will be able to retain its customers if it doesn’t engage with them first. A lot of businesses are already doing this, and that’s why they’re doing so well and gaining more success than others.
5. Acting on Feedback: Companies should focus on running effective campaigns to get feedback from their customers without being intrusive.
Automated Calls give you a 3X advantage over other channels because they can be scheduled using a telephony platform that is cloud-based like DialDesk, and are conducted with the help of an IVR system which allows you to easily handle customer feedback programs.
Our team of Call Center Provider experts can provide you with the comprehensive solutions you need to retain customers. Please contact us for any queries you may have.
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