Right Customer Engagement Boosts Customer Retention

“Your customer retention strategy is exactly how you maximize profitability of each customer”

Do you know what’s better than acquiring one new customer? If you think acquiring two might be the smart answer, it isn’t. It’s retaining an existing customer.

While there’s a certain allure and happiness that comes with capturing new customers, keeping old customers coming back will continually result in a greater ROI because no matter how intangible and unmeasurable feelings may seem, marketing experts always say, customer engagement is a highly valuable strategy.

What exactly is customer retention?
A collection of activities a business uses to increase the number of existing repeat customers and to increase the profitability of each existing customer. Effective customer engagement can become the key to building your company faster. How? Improving your customer retention boosts revenue substantially.

When must an enterprise focus on customer retention?
Customer acquisition or customer retention? When to make the choice. This is heavily influenced by where your store is in its lifecycle. An enterprise that started yesterday is vastly different from one that’s been up and running for many years.

“Customer quality always wins over quantity”
Understand how it directly fuels customer retention?
A well-engaged customer journey is always likely to stay with your brand be it a product or service for a long time if he gets the right customer engagement, thus improving your customer retention rate. The reasons for their staying can be

  • Understanding that your product/service carries great value for their choices
  • Feeling that your brand cares about their interests and success
  • During the customer journey making them feel the product is the top option on the market for them

Customer engagement and customer retention go hand in hand, like a directly proportional theory. Without a proper approach to customer engagement, customer retention is virtually impossible to achieve, so here are few steps how to increase/improve customer retention using these strategies:

  • Retain customers with a smooth on-boarding process

First impressions are everything. If it was positive, they’re much more likely to stick around so a good onboarding process can set you up for success for years to come. It should be personalized, hands-on, and focus on removing as much friction as possible.

  • Reward promoters and loyal customers with Offer incentives on their purchases

Rewarding loyalty may be the key. Sending bonuses and surprises when a customer places their fifth or tenth or twentieth order. If you gauge loyalty in terms of time, then send bonus gifts at important intervals, such as six months or maybe a year.

  • Launch VIP programs for them (treat them high on your list)

A VIP program to reward your loyal customers speaks well. Being part of such a program is often a big enough incentive to continue coming back to your brand.

  • Close the loop on customer feedback/customer opinions

Best way for customer retention is to know how they feel about your brand. When you understand customer sentiments and what they like/dislike, you can refine your approach and better meet their needs. Close the feedback loop with your customer is just as crucial.

  • Keep your products and services top of mind

To retain loyalty, showcase yourself everywhere. Good options include weekly email newsletters, running contests on social media, and producing high-value content such as videos, podcasts, Ads, etc.

  • Have a great customer support

Customer support should be readily available whenever they have questions. The support must always be ongoing and highly proactive, thus by analyzing your customers’ behaviour, you can gain insights into areas they need help with.

  • Educate customers about your services

‘Let them know’ can be the best strategy. If you notice that on the customer is regularly engaging with only a certain number of features, go ahead and communicate the benefits of other services too.

Concluding thoughts
Every forward-thinking brand will need to embrace this approach if they want to create customer satisfaction, generate more conversions, and increase their customer retention.

Talisma solutions enable organizations to deliver exceptional customer experience on a global scale across engagement channels and interactions. Serving a variety of industries through its wide range of vertical specific solutions and a combination of advisory/consulting and support services is the key.

2022-07-21T01:23:53+05:30June 14th, 2022|

Leave A Comment