Customer Retention Strategies from 10 Top Companies
Customers are the biggest and the most valuable asset for any organization. Be it a small business or a large organization. Customer acquisition and retaining is two of the most used strategies in the corporate world along the lines of customer management.
One of the most frequently asked question in organizations is “what’s better?” is it acquiring new customers or retaining the existing one. Even though both these strategies are important one of them should be the primary focus.
It definitely is a tricky question however; the tested and proven answer is focusing on Customer Retention Strategies is the best choice. There are many studies that have proven that today in organization almost 68% of the sales are generated through the existing customer base. So the stakes are definitely higher.
Even though Customer acquisition sounds very attractive retaining customers will constantly generate greater ROI and the norm is that it costs approximately 5 to 25X lesser. It is also believed that these customers will definitely bring in new customers through recommendations and word of mouth.
The next important question is “how do organizations create customer retention strategies to increase customer engagement and satisfaction. There are many case studies across organizations that have tried and tested different methods in customer retention.
Here are nine customer retention strategies that some of the biggest brands are currently following to attract, retain and satisfy customers. Three of the ingredients that make this wonderful recipe are leveraging on convenience to prioritizing and personalization that have been the key in many successful customer retention strategies in top companies.
If you are still confused on what exactly is customer retention let’s break it down to fractions more before moving into customer retention strategies. “Customer retention is a very specific initiative designed to focus on increasing customer value and encouraging them to re-visit, re-purchase and even speak about the products and services.
Here are some of the top customer retention strategies used by the top companies across the world.
This mainly focuses on the new customers. It is a program that allows new customers to learn about the products and services rather than letting them to self-learn. In most cases these are conducted as a personalized services base on the customer requirement. Therefore, organizations focus on training their employees to handle multiple scenarios to ensure the customers get what they expect.
Customer Feedback Loop
Another very important aspect for organizations is to learn about their customer’s feedback to provide them a better service on their next visit or encounter. There are many methods to follow this feedback however; most common way is with a survey like Net Promoter Score. It shouldn’t stop from gathering. It is very important analyze the survey results and then implement next actions
it is the organizations responsibility to always keep in touch with their customers. In many cases this constant chit-chat is what will remind customers on the existence of you (organization). One tool that can be used is the communication calendar to manage customer engagements and create opportunities to upsell and cross-sell. It is a chart that keeps track of customer communication and alerts you on the last time that customer has reached out alerts when existing customers haven't interacted with your brand.
Customer Loyalty Program
These programs are designed to reward customers for their continued loyalty. The more interactions with the business the more they are rewarded.
Customer Advisory Board
Your most loyal customers are your strongest pillar. They give you honest opinion to improve. Hence to have a panel of customers can help fine-tune products and services. Further, you can easily create customer advocacy by encouraging them publicly share reviews.
Corporate Social Responsibility Program
it is always important to look at your organization to something beyond a money generating entity. Nowadays customers are very concerned about what organizations do beyond their core business. Simply what do you give back to the society.
A simple and cost-effective way of retaining customers by sending a simple newsletter with updates, offers etc.
Customer Education Program
This is a long-term investment for your customer base. Organizations can create many features such as creating a variety of customer self-service tools like knowledge base and community forum.