You will often excel at closing the first sale with a customer. Do you invest the same amount of effort and time in re-engaging with them after their first purchase? In case you don’t, it is high time you acknowledge the importance of customer retention.
According to Invesp, the cost of acquiring a new customer is five times that of retaining an existing one. It is clear that you should focus on customer retention in order to make your business profitable. You’d be mistaken if you think you can retain customers just by providing extraordinary customer support. Let me take you through a few effective strategies to boost customer retention.
I often come across companies that handhold customers to close a deal and completely abandon them thereafter. This creates a feeling of discontent among clients and decreases their likelihood of return. It is important to maintain communication with them even after they have exited your sales funnel.
I’d recommend you to send a follow-up email shortly after customers make their first purchase. Thank them for giving your products a try. Make your follow-up email more powerful by including a discount voucher that will be applicable to their next purchase.
Ask for Feedback
After every purchase, request customers to review your product/service and their overall experience. It creates the impression of a brand that cares for its customers. In addition, this feedback is extremely useful in further honing your offerings to suits customers’ needs.
I also suggest that you use multiple channels including social media and emails to conduct regular polls and surveys. It is a great way to keep your audience engaged. Moreover, you can use this data to improve your offerings.
Your customers are a skeptical lot. Even a single negative experience can completely sever your ties with them. An easy way to avoid this is by being open and straightforward about company policies. For instance, if you own an e-commerce business, outline the shipping policy, payments terms, and other regulations (returns and refunds) on your website.
Re-engage with Dormant Customers
You might already have access to a huge database of customers who have remained idle for months. Perhaps, all they need is a slight nudge from your end in the form of a limited period discount. Rekindle your relationship with them and find out why they lost interest in the first place. Improve your product/service accordingly to meet their needs.