You may have a killer product ready for launch in a target market that could drive the growth of your company, but to have long-term success you have to spend money on customer retention. According to Marketing Metrics, the probability of buying your products is 60-70% for existing customers in contrast to 5-20% for new visitors.
By merely increasing your customer retention by 5%, your profits may increase by 25-95%. In fact, studies reveal that 86% of customers agree to pay a higher price if they enjoy a better customer experience. For this reason, customer retention is important to boost your sales by ensuring a better customer experience.
Many companies use their resources to come up with effective customer retention strategies. Most popular strategies today for a successful customer retention plan include email marketing and Contacting people directly by phone.
Email Marketing For Successful Customer Retention
Email marketing can serve as an effective tool to win long-term customers. Almost 80% of brands currently use email marketing to drive customer retention. Another 56% agree that email marketing is an effective tool to ensure successful customer retention. Email marketing provides a direct and personal channel to engage customers with their favorite brands. Emails can help you collect valuable data and engage customers via live and progressive polling. You can utilize customer insight to create personalized campaigns. Consider including the different type of emails like welcome, post-purchase, and cart recovery for a better customer experience. Employ an 80/20 rule to create transactional emails where 80% of the content explains order tracking and shares informative insights while 20% of the content can be used to promote or upsell products as per the customers shopping history.
Every interaction you have with your customer can serve as an opportunity to foster long-term relationships. Email marketing campaign can help you establish a one-to-one relationship with your customers by effective engagement. For successful email marketing, organizations must identify their target audience and employ detailed analytics to implement personalization. The following tactics may help in creating tailored data-driven email content:
- Analytics – Marketers must integrate data mining, information insights, and effective analysis to accurately identify effective customer triggers. For this, marketers may need to evaluate consumer profile, lifestyle, purchase history, and cross-platform engagement.
- Result Monitoring – Marketers can precisely monitor their campaigns by analyzing click-through rates, conversations, and email tracking.
- Capturing Consumer Attention – Evaluate the strategies and content that capture consumer attention. Track unhappy users and analyze what made them unsubscribe. This will help you understand the elements that help in customer retention.
- Personalized Content – Personalize and optimize content on the basis of location, device, weather, and timing to engage consumers and increase customer lifetime value.
Upsell Opportunities And Customer Retention By A Phone Call
Phone calls are the best tools to ensure immediate gratification and instant results. Surveys reveal that customers who have their queries answered immediately stay satisfied and loyal to a brand product or service. More satisfied customers are likely to buy more products and services. Same is true when you introduce a new product to a current customer. Statistics explain that upselling offerings over the phone or through a live chat are a surefire mode to close the deal on a positive note since any objections or negotiations can be handled immediately.
Phone calls allow you to ask the right questions straight to your customer and often end up with accurate answers. You get real-time feedback about your products and services over a call. With a quicker feedback, you can quickly optimize your products and services for a better customer experience which will eventually increase retention. Real-time improvements to the customer experience often end up in positive testimonials and higher profits. Answering qualified sales calls can result in higher revenues. But at the same time, you should ensure a good mobile experience. 52% of customers tend not to engage with you if you provide a poor mobile experience. With a quick response and better user experience, phone calls can improve sales, increase retention rates, and eventually increase profitability. Following tactics may help you provide a better phone experience to your customers:
- Courtesy Calls – These calls are made just after a recent purchase by the customer to identify how they are getting along with the product or service. A courtesy call helps you identify any issues before they escalate. One important point to note about courtesy calls is that you should have a knowledgeable, helpful, and authoritative person to address the issues if any. Courtesy calls exhibit a proactive, helpful, and customer-centric approach which is highly appreciated by the consumers. Often times, a courtesy call to satisfied customers ends up in a positive review.
- Sales Calls – Although sales calls are more to the point, they can be focussed on benefitting the customers. With such an approach, 80% clients end up with a yes to avail the product or service being sold. Many B2C and B2B businesses use sales calls effectively to enhance their business. Sales calls channeled as customer service calls can serve as magic beanstalks to reap loyalty and win customers.
Which One To Employ For A Successful Customer Retention Plan
A successful customer retention plan must have a balance of both email marketing and phone calls to ensure a consistent customer experience. Strategically implementing customer retention plans will help you get good results. You should look beyond price and selection to gain customer insight and provide a frictionless customer experience. Partner with your customers via new and unique modes like reciprocity and customer loyalty programs. Focus on providing a consistently great user experience by staying on their radar after a transaction and stay responsive for better customer retention. By taking these simple measures, you can greatly enhance your business prospects.