Acquiring a new customer is not easy and usually costs five times more than retaining the existing customer base. Thus, businesses now focus more on creating a loyal customer base rather than target new consumers. But, how can a business instill loyalty in their customers so that they are not inclined towards another brand? To answer that, we have made this post to help you get familiar with the best customer retention techniques for startups.
1) Offer customer service
Customer service should be the top priority of your business as it is prime to its growth. Unfortunately, it is often overlooked and costs the business. Customer complaints or quarries should be dealt with by providing a useful solution to their problem.
In case of a mistake from your side, you should remain honest and apologize for it. Make sure that the team behind customer service has problem-solving and communication skills. Poor communication can push your customers to buy from your competitors.
The graph suggests the most important aspect of ideal customer service which is fast response followed by simple purchasing process. Make sure your business response to quarries quickly.
With good customer service, the customers will return to buy, but they will also recommend more people to buy your goods/services. By using this technique, you can take your business to the next level.
2) Focus on why your customers are leaving?
There must be reasons why your customers are not placing repeated orders. It can be due to poor customer service, bad product quality or high expectations from your product. The problem needs to be quickly figured out and then resolved.
One way to find out is through customer reviews. Focus on what the buyers are saying and try to improve that aspect of your business. If a customer is no longer availing of your services, send them an email about how sad you are to see them go and ask what led them to terminate your services.
3) Offer loyalty programs
To award your loyal customer base, you can introduce a loyalty program as part of your customer retention system. Loyalty programs include rewards for customers that come back and shop with you.
Once you have a loyal customer base, you can start making them feel special by introducing new products and offering exclusive discounts, deals and vouchers. These things will make them feel valued, and they would not turn to your competitors.
You can even introduce a points system. For example, when a customer spends a certain amount, they will be rewarded points that be redeemed for vouchers or any other item.
4) Stay active on social media
Socials media is huge nowadays, and many businesses benefit from its exponent growth to make more profits. Social media also keeps you in touch with your customers, and that is why you should link social button footers on your website, contact page and checkouts.
Make sure to update your social media to stay up to date with your current and potential customers. You can ask your loyal customers to post positive reviews about your business on social media to generate a buzz.
There are many social media apps and marketing strategies that you can use to expand your business and retention rate. A few common examples are Facebook, Instagram and Twitter.
5) Host webinars and live sessions
Hosting webinars and sessions has proved to bring businesses to the next level. This strategy is perfect for startups that are in survival mode.
Based on a survey between 20% and 40% of webinar attendees turned into qualified leads. (source)
The webinars engage you with your customers, and they get to know more about your business and product. The participants will be able to ask questions that you can answer and build trust with your customers. Going live with your customers will make them feel connected to your business, and the company can answer any quarries professionally.
At times blog posts and articles are not enough to stay connected with your customers at a personal level, which is why webinars can be effective.
You can record the webinar, and once it is over, you can publish it on your social media and website for others to see. Apart from customer retention, webinars can also help you reach more potential customers.
Final thoughts
Firms work very hard to keep their retention rate high as loyal customers account for many sales. These techniques are used by most startups and have yielded positive results.
Using the strategies would not guarantee you immediate success. You will need to be patient to see the results.
