Customer Retention is essential for any businesses-online or offline. This article will provide you some insights & customer retention strategies that you could used in your business. Just for recap, previously I have written about what are customer retention, why it’s important and how to measure your customer retention rate. Now I’ll go deeper into the perspective of retaining customers. You can use these strategies if it suits your business model.
Customer Retention Strategies can be divided into 4 stages.
Stage 1: Create a Strategic Plan
A strategic plan should be your blueprint to marketing your products or services to your customer. It is a plan that is consists of a series of action. If you don’t have an effective plan, no matter how big your businesses is eventually it’s not going to get you anywhere.
When creating a strategic plan, you should address a few key points below so that you know how you should plan your marketing strategies.
“What was your company’s strength that made you becomes success in your customer’s eye?” It might be because of unique feature of your product or something else.
“What are your core competencies to stay aligned with the changes in the marketplace?”
“How does your company listen to customers and respond to what customers’ value from you?”
Stage 2: Implement the Strategy
Once you have answered the questions above, it’s time to decide which strategy your company wanted to use. It’s all depends on how much budget your company allocated for your marketing campaign. If your company is small then just start small. If you have a big company, start small first then gradually increase your budget to suit your firm’s needs. It does not necessarily that you must spend thousands of dollars to get a billboard or do an infomercial ad for TV.
Different companies have their own unique strategy. Be unique and do things different than other company. If you are able to have unique strategy, you will stand out of the crowd and your prospects will get noticed of you. Integrate the strategy in your sales & marketing.
Stage 3: Measure the Metrics
Start collecting the data and feedbacks. Keep track of your sales volume and number of customers you have acquired or lost over the period. It’s quite surprising that many companies do not have a good tracking system to track sales & customers. Do a book keeping if you need one.
Use the Customer Retention Formula to calculate your customer retention rate. If your rate is too high , it means you’re losing too many customers. If your rate is low, keep attracting new customers while keeping the old ones happy.
Stage 4: Tweak It!
Despite of all the strategies that you implanted, if you are still losing customers find out why customers are leaving you and shifting their attention to your competitors. Get their feedbacks and re-adjust your sales & marketing strategy to find out what’s working and what’s not working for your business.