A subpar retention rate is like trying to fill a bucket that has holes on the bottom. In order to solve the problem of customer retention, you have two available approaches: work harder or work smarter.
Therefore, a smart customer retention strategy, in the bucket metaphor, would be patching the holes and retaining the water instead of compensating with quantitative work or, in other words, more water.
Retaining customers is not only cheaper than acquiring new ones, 7 times less pricey, but it’s also more efficient! While both existing and new customers bring revenue, why waste energy and resources trying to acquire new prospects when you can obtain the same results in a more cost-efficient manner?
However, the hardest part in the customer retention process is convincing them to remain loyal to your brand. How can you meet this objective? There is no doubt that if they don’t like the way you communicate with them, they’ll likely never buy your products again. In order to create brand loyalty, you really need to know how to sell your products. Here are four customer retention strategies that will boost your retention rate significantly if you educate your prospects properly:
1. Educate your prospects about your products, and only then start selling them
According to online marketing specialists, you have greater chances to sell your products if you already have a relationship with your prospects and you’ve already proved worthy. According to TARP Worldwide, customers enjoy receiving useful recommendations on new information and products that will help them improve their daily lives.
2. Use the right words
Not all words are created equal. Certain words, such as “Free”, “Instantly”, or “New”, when used in sales pitches, can persuade your prospects to buy more. Therefore, don’t forget to include powerful words, with emotional meaning when creating your customer retention strategies. Your messages should be persuasive enough to hit the bull’s eye when it comes to their needs.
3. Cushion the blow
No matter the industry, all businesses will interact with many types of consumers, consumers that exhibit different buying behaviors. According to statistics, 25% of buyers are conservative spenders that always seek the best deal for them. Therefore, when you address this type of buyers, you need to tailor your messages to their interest and soften your approach, using reassuring words. For example, instead of “a $5 fee”, you should use “a small $5 fee” when informing them about the shipping fee. Cushioning the blow is a highly effective customer retention strategy that is efficient even with the most difficult prospects.
4. Know your product’s momentum
When important improvements are being made to your product, everyone in the company, from employees to managers, feels the momentum. But do your customers feel the same way? Most probably not, if you don’t educate them properly about your product’s new features.
While this is usually the job of a Product Marketing specialist, the right execution is what really matters. Create your customer retention strategies around the idea of anticipation. Arouse excitement among your customers by educating them about your latest features and its added value.