Customer Retention Strategies And Their Importance For Websites
Posted On :December 6, 2022
/Categorized In : Customer Retention
/Written By : FSC
Every business owner applies various tactics to attract customers and maintain the best customer retention rate. It includes the promotion of products, running ads on social media, and many more. But the psychology of customers is quite impressive as they hunt for a quality product at an affordable price, and to get the same, they can even knock on your competitor’s door if he/she is offering the products at a discounted price.
So, if you want your existing customers to stick to your company’s products or services, you need to apply some strategies, and this article covers the same.
What Is Customer Retention?
Customer retention is the ability of a firm to keep engaging existing customers in their products/services and prevent them from switching to other platforms. If you are running a business, you will never want to lose any customers, and you will apply several strategies to appease them so that they will stick with you. The process and your ability to keep the existing customers buying the products repeatedly from your shop is termed Customer Retention.
As per the report of Harvard Business, the money spent to bring new customers compared to retaining the existing ones is quite high, and on average, it is 25% more expensive. So, to get more profit in a business, you must focus on the customer retention strategy instead of focusing on the new ones.
The existing customers who approach your door to buy the product repeatedly mean they have trust in your product, and they will convenience others to buy products from your shop. It means you are getting the promotion of your business without spending any money.
Why Is Customer Retention Important In Marketing?
In online business, it has been noticed that the switching of customers is quite fast because they love lucrative offers for products or services. So, to prevent their flow from your platform to another, you must have a good customer retention rate. Moreover, if you have a good flow of existing customers, then there is a high chance that they will buy the new product from your e-commerce site.
What Are The Strategies For Customer Retention?
Customer retention strategies are very important for any business, especially in online platforms, because the competition is very high on these platforms, and the switching rate of customers is also high. So, to retain them, you must think from the customer’s point of view, if they love your product or services, then they will come again and again for the same. Your strategies should be prepared considering their comfort, and for your convenience here, the best strategies are listed below.
1. Fast Customer Care Support Service
In the present day, most people need an instant solution to any query, and the same case applies to an online business. You must possess an efficient customer support team who resolves the queries of the customers in no time and respond to them quickly. Your existing customers will love this approach as they will get an instant solution to the problem.
2. Treat Your Existing Customer As A Premium One
If you give additional perks to existing customers, they will stick with you. For instance, if you have planned to launch a new product, then make sure to keep it first for the premium members and then for the others. They will think that you are giving them VIP treatment, and they will love the same.
3. Never Let Your Customer Go
Communication between the customer and the company is very important, and it helps to grow the relationship. You will find several ways to communicate with them to enhance client retention; either you can shoot engaging emails or can share the info about the latest product on social media or other platforms. If they get a notification about your products, then they will approach you to buy the product.
4. Provide Discounts On The Products To The Existing Customers
To build trust in your customers, you must provide them with some discounts on the selected products, and applying the same strategy will give two outputs; they will purchase the product, and second, the relationship will grow stronger.
How To Calculate And Improve Customer Retention?
Customer retention rate is the key indicator to figure out the business health as it will help you to know the rate of customers sticking with you. Here, a simple formula for CRR is provided below with an example; go through the same and calculate for your business.
- First, you need to ensure for which period you are calculating, i.e., weekly, monthly, or quarterly.
- Next, take your log sheet and check how many customers you have at the start of the first quarter (here quarter period is considered as an example). Let us mark it as ‘A.’
- After that, figure out the number of customers you had at the end of the first quarter. Let us mark this equation as ‘B.’
- Also, you need to calculate the new customers who came during the first quarter. Consider this equation as ‘C.’
- Customer Retention Rate= (B-C)/A x100
Conclusion
Customer retention is very important in marketing as it enhances the business because existing customers are loyal, and if treated properly, they will come again and again to your doorstep to purchase the products. So, if you carefully maintain a client retention rate by applying the above strategies, or you can contact to the best digital marketing company that will you to grow your business exponentially.
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