8 Customer Retention Strategies To Boost Brand Loyalty
By Indeed Editorial Team
Published 12 October 2022
The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.
Building a strong loyalty between a business and its clientele is a vital component to keeping a company successful. While attracting new customers is an important part of growing a brand, keeping those who have already engaged with a business's products or services can save companies money that would otherwise go towards additional advertising and consumer outreach. Customers that already have a history with a brand may feel more comfortable purchasing again if their initial experience was positive. Customer retention strategies are different approaches that companies can use to encourage their existing clientele to remain loyal to their brand.
In this article, we define what customer retention strategies are, explain why they are important for companies and provide a list of 10 examples of retention strategies that can promote customer loyalty.
What Are Customer Retention Strategies?
Customer retention strategies are methods that businesses use to keep consumers loyal to their brand, resulting in repeat purchases and subsequent growth for the company. Retention strategies can involve any form of outreach or engagement towards existing customers that improves the shopping process. The goal is for the consumer to have a positive experience that makes them more inclined to make future purchases and share their experience with other individuals, providing companies with a free form of advertising.
When these strategies are successful, companies can increase the value that each customer brings to their business. For example, if a brand shows a client that they appreciate their business by offering them a discount, that client may feel more inclined to continue purchasing products from that brand, hoping to receive more discounts in the future. Because the customer already feels that the business is worth dedicating their time and money towards, the company does not require to allocate additional resources towards convincing that customer to make repeat purchases.
Why Is Customer Retention Important?
Customer retention is important for businesses because it increases brand loyalty amongst their audience while also helping to decrease costs that would otherwise go towards outreach. Attracting new customers is obviously important for a business to succeed, but once they receive returns from the purchase, they can only keep making profits if the individual feels inclined to purchase again, typically because of a positive consumer experience. If the company was unsuccessful the first time around, they are required to dedicate funds towards reaching back out to those customers to reinstate their interest.
Another reason customer retention is important for businesses to understand and implement is that it eliminates the need for convincing customers of the quality or value of a product, as they have already expressed their interest by purchasing it in the past. This saves companies money that they would require to put back into convincing the customer to trust in their product. It is important to note that this can only benefit a business if they are successful the first time in providing the consumer with a positive experience that makes them confident to purchase again.
8 Customer Retention Strategies
There are plenty of methods businesses can use to boost their customer retention, saving them valuable time and funds while increasing the purchasing power of their existing customers. Here are eight examples of strategies companies can use to keep their clientele:
Discounts are a common way to entice existing customers to purchase products repeatedly, especially if a company offers discounts immediately after they complete their first purchase. This can encourage the customer to purchase more items, given that they can save money using the promotion the company has provided them. Businesses can send out discounts in a variety of ways by sending sales codes over email, text messages or through postage. Offering discounts after customers purchase items can also help boost the company's image by demonstrating to consumers that they appreciate their business.
2. Customer service
Providing top-quality customer service is another strategy businesses can use to keep their clientele. It is important to provide customers with user-friendly and efficient forms of customer support, whether that includes 24 hour hotlines, live instant messaging or email correspondence with representatives. The goal is for customers to have a positive experience they can remember the next time they are in the market for a product or service similar to the one you provided. Quality customer support can also help clients feel more confident in engaging with a company and encourage them to share their positive experience with other people.
The ability to personalise content for consumers is another popular strategy for retention. There are various ways companies can personalise content for their customers, often requiring the use of data analytics to determine their preferences and habits. Some common examples of personalisation include addressing the client by name in emails, sending handwritten notes through postage to thank them for their purchase or selecting specific promotions that align with products the consumer has previously expressed their interest in. Personalisation helps clients feel valued by the businesses they engage with.
4. Loyalty programmes
Loyalty programmes are another strategy businesses can use to increase customer retention by incentivising them to keep making purchases. A loyalty programme is a type of membership that customers can sign up for when they buy from a company that allows them to earn rewards while they make purchases. For example, a tea shop may have a loyalty programme that rewards members with a free half litre bag of their tea leaves of choice if they make a minimum of 10 purchases. This encourages retention by incentivising customers to make repeat purchases until they work their way to the reward.
5. Feedback surveys
Gathering customer feedback is another way that companies can show their clientele that they appreciate them, which can cause higher retention rates. Businesses can create surveys for existing customers asking them to rate their consumer experience on a scale, to fill out text boxes where they can explain their feedback or offer multiple-choice questions with ranging answers that allow the customer to describe how their experience was. A feedback survey is a great way to gain insights about the effectiveness of a company's marketing strategies while also encouraging customers to remain loyal to a brand that values their input.
6. Social media
Social media can be an effective tool for retaining a company's clientele. The rise of the digital age has made social media management and marketing a critical component in promoting businesses. Companies can use social media to their advantage in various ways, such as interacting with their clientele on these accounts by responding to or liking comments, incorporating the latest social media trends into their content or offering special promotions for customers who engage with their socials. Strong social media engagement can also boost a brand's image and help inform more people of its products or services.
Providing customers with gifts can be an effective way to show appreciation for their business while also providing the perfect opportunity to promote products. Companies can send small gifts to existing customers to remind them of why their business is special, or provide gifts as part of customer purchases to make them more inclined to purchase again. Gifts are often small sample sizes of larger products that allow the consumer to experience it before purchasing the full size. Businesses can also promote new products by sending them as gifts with existing orders.
A subscription service is a business model where the customer pays a regular fee, often on a weekly, monthly or yearly basis, in exchange for a product or service. Subscriptions can be an effective retention strategy, as they guarantee the customer repeatedly purchase products or services within specific intervals of time, with most people using automatic payments to cover their subscription costs. The business has to put a majority of their effort into convincing the customer to subscribe, and once they succeed in this task, they can reap the benefits.
Explore more articles
- What Is Workforce Planning? (Definition And Steps)
- A Step-By-Step Guide On How To Manage Projects (With Tips)
- Project Tracking: Importance, Benefits, Tips And FAQs
- How To Set Up Out Of Office In Outlook (With Examples)
- Programme Management Vs. Project Management (Definitions)
- Common Business Communication Skills And Their Importance
- What Is A General Ledger And How Does It Typically Work?
- Skills Of A Personal Trainer: Examples And Ways To Improve
- Occupational Therapist Skills: Definition And Examples
- Discover Some Essential Skills For Marketing Consultants
- Pragmatic Vs. Social Skills: Differences, Examples And Tips
- What Is The Quick Analysis Tool In Excel? And How To Use It