It’s all good and well to focus your efforts as a business on targeting new customers. However, a company’s longevity can be determined on how one strategizes and executes a plan to retain its customers, encouraging repeat purchases, whether they be services or products, over a long period of time.
Building customer loyalty can be just as important as encouraging customers to continue engaging with your company. You may win a new customer over but what steps are you taking to bring them back time and time again?
There are three important factors to take under consideration when looking at ways in which you can build on customer retention.
Understanding their needs.
The first step in building your strategy around retaining customers is to look at what your customers need, why they need it and how you can provide a solution to their problem in the most effective manner. It is vitally important to conduct in-depth research on what customers need, using analysis tools to understand behavioural patterns and trends. Do your customers make purchasing decisions based on emotional impact? Or do they purchase based entirely on pricing? Is it because they are loyal to your brand or is it because you provide exceptional service and they feel supported? It is important to understand this data as it will help you inform your decision-making methods.
Making them feel valued.
The concept of ‘value’ is becoming increasingly significant in the customer experience, particularly with younger generations. When making decisions whether customers will buy into your product or service, is based on how they determine whether a brand will make them feel valued. The way in which you communicate, asking them for their input in building a better company together, can play a big role in helping them ‘invest’ in your brand or company. As a company, will you help bring value to their lives? Will it help make them feel special or unique? It’s an important question to ask yourself.
Reward them for their loyalty.
Clients love being rewarded for their loyalty to a brand or company. It is important to keep this in mind when looking at ways in which you can retain your customers and keep them coming back for more. Furthermore, rewarding them helps them feel valued as a client of yours. It also assists in helping them return in order to purchase more as they know they will be rewarded for their efforts. “Why must I go to Company B when Company A rewards me for my business?”
It is important to think about these factors when looking forward to the future and how you, on behalf of your company, are going to retain clients in a cluttered and ever-evolving world.