To grow sustainably, acquiring new customers is not enough. For life-long value, you need a plan to keep customers coming back to you and increase customer retention rates.
5% increase in customer retention rate can lift 25%- 95% profits.
Retaining an existing customer is 7x more expensive than acquiring a new one.
Customer retention rate is the fundamental metric that reflects how good the relationship between your brand and your customers is.
That means, to have more returning customers, you need to build and maintain a strong, long-lasting relationship with your customers.
This guide is made with the 7 most effective ways to enhance your relationship with customers and keep them coming back without begging them.
7 Tips to Keep Customers Come Back
Improve customer satisfaction
According to Rare Consulting, loyalty is about likeability (86%) and trust (83%). The happier customers are with you, the better chance they would come back. Therefore the first thing you should focus on is customer satisfaction. Make sure everyone is satisfied when they shop with you.
#1 Provide excellent customer service
Besides product quality, customer service has the biggest impact on customer satisfaction. Bad customer service can push away 71% of your customers. That makes the customer support department the first place you want to put your efforts.
#2 Show your appreciation to your customers
To make customers satisfied, excellent customer service is not enough. You need to go the extra mile and show them your appreciation. When customers feel appreciated and see how important they are to you, they would be more loyal to your brand.
#3 Improve customer experience
If you want customers to shop with you frequently, you should make the shopping process as smooth and enjoyable as possible.
Start a long-lasting relationship with customers
When you’re confident with your customer support quality, it’s time to move to advanced tips. The 2 tips we are going to talk about are more scalable and measurable. If implemented right, they can bring a significant boost to your retention rate.
#4 Build a fruitful loyalty program
A loyalty program is old but gold. It can be considered as a must when it comes to retaining customers.
#5 Create a subscription service for your products
Another good way to maintain your lifelong relationship with customers is by offering subscription service for your products. If you’re selling products that customers can buy in a frequency of weeks or months (like shampoos, food, tampons, etc.) you can create a subscription plan. When customers subscribe, products will be delivered in a pre-set schedule without having to manually order from time to time.
Build a strong brand that sticks in customers’ minds
Once customers know about you, never let them forget. A strong brand will make customers remember and always be on top of customers’ minds. Your competitors will hardly have a chance to get in the middle of you and your customers.
#6 Position your brand as a trusted knowledge center
If you’re an expert in your field, help your customers learn something new. You will not only gain customers’ trust but also become a reliable resource when they seek help. With your deep understanding of customers’ needs, people can rely on and follow your instructions. As a result, they also trust the product and service you provide.
#7: Create shared values with customers
Is it about the product quality, the excellent design, or something else that makes people crazy every time Apple releases a new product? Apple doesn’t even have a loyalty program, but it creates such strong loyalty in customers that no other brand can do.
The first time customers shop with you, they risk their money.
The second time, they trust you.
From the third time, they’re loyal to you.
People can risk their money but they never risk their trust and loyalty.
To earn customers’ trust and loyalty, you have to dedicate so much time and effort. It’s not an easy task that you can expect a magical peak in revenue immediately. That’s why customer retention strategy is not for one-off businesses.
We hope that our 7 ways to keep customers coming back are helpful for you to build up your current strategy. You can start with whichever tip that fits your business growth stage with our checklist here.