Once you’ve acquired a new customer, the real work begins. From this point, all your efforts should be directed toward retaining your customer.
Customer retention is crucial to the long-term growth and profitability of any company or brand. As experienced marketers and salespeople know, calculating the lifetime value of customers is fundamental for making decisions about where and how to invest your time and money—and customer retention lies at the heart of it.
At GRI, we’re laser-focused on helping you turn first-time buyers into steady customers to get the most value from your customer base.
The importance of customer retention cannot be overstated. For example:
Cuts your costs. Companies that invest in retaining customers can save money right off the bat. Why? It’s 5 to 25 times more expensive to acquire a new customer than to retain an existing customer.
Higher ROI. Customers who stick with you will inevitably boost your bottom-line. Increasing your customer retention rate by a modest 5% can increase company revenue by 25% to 95%.
Stronger loyalty. Your best customers are your existing customers. Returning customers buy more often and spend more than newer customers because they’ve already experienced the value of your product or service, motivating them to come back again and again.
Valuable referrals. Companies have learned that their loyal, satisfied customers often act as their best salespeople without even realizing it. By referring friends and family, and recommending you with a personal endorsement, they’ll steer new customers your way without any effort or expense on your part.
Customer retention should be a key part of any business-building strategy. With GRI’s help, retaining customers can have a multiplier effect that can enrich you for years to come.
A More Robust Customer Experience
A crucial step in the customer retention process is to build trust through a seamless customer experience. GRI employs a variety of strategies to ensure you meet this goal.
We deliver and support consistent branding and messaging throughout your marketing channels.
We survey your customers to identify problems and communication gaps—and come up with targeted solutions.
We make sure your website is easy to navigate for a clear, satisfying customer experience.
We help you keep customers informed and educated on product and service updates through engaging content, such as newsletters and videos.
We provide support on the right channels.
We develop strategies to treat your customers in ways that result in a positive response, leading to a reciprocal, mutually beneficial relationship.
Delivering More Value
Delighting your customers on a regular basis and finding ways to show that you care about them is an integral part of customer retention. Put another way: demonstrating your appreciation through a meaningful, focused customer loyalty program can be a powerful way to bond with your customers and keep them actively engaging with you.
At GRI, we’re experienced in finding new and classic ways to satisfy your customers and deliver long-lasting value.
We can put together loyalty programs that are engaging, motivating and generate results.
We can recommend a variety of incentives to thank customers for any action they take with you and keep the relationship going.
We can come up with rewards for loyal advocates that recognize them for their service and keep them motivated for the long-term.
We can target customers with special offers based on their behavior and buying patterns that they’ll find most appealing.
A strong customer loyalty program or an equally strong customer reward program can reinforce your commitment to your customers—and keep them loyal to you in purchase after purchase.
Restarting Inactive Customers
The relationship between you and your customer often boils down to this: the customer experience.
Obviously, every company loses customers, but companies that think through the customer experience can often win back lost customers.
At GRI, we find that an excellent way to expand your customer base is by reaching out to customers who haven’t done business with you in a long while. Whether you think of them as old or lost of former customers, the important thing is that if they bought from you in the past, they may buy from you again.
Put another way: once a customer, always a customer.
Research shows that reactivating old customers has a 20% to 40% success rate, compared to the 5% to 20% success rate of acquiring new customers—making a compelling case for going after this customer group.
The first step is to ascertain why the customer left in the first place. If you can’t draw any insightful conclusions from their buying history with you, we suggest contacting them and asking them directly or by taking a customer satisfaction survey.
Second, we recommend a program of contacts to restart them buying again. For example:
Reach out by direct mail or email with a message stating that you’ve noticed their inactivity, you miss your relationship and would like to re-establish it.
For an added push, offer them a unique “welcome back” incentive: a limited-time discount, a special shopping privilege, etc.
Use different methods to contact them. For example, if your relationship has been email-based, trying calling them instead.
Ensure that it’s easy for them to become active again, whether that means making your website easy to navigate or simplifying your log-in and password protocols or highlighting your extraordinary customer service.
GRI can help you put together a reactivation program that can result in gaining back once-profitable customers.
Managing your customer relationships takes a consistent effort to interact with them at personalized touchpoints. One of the best ways to accomplish this is with an automated Customer Relationship Management (CRM) system that helps your sales teams keep track of customer engagements.
Automated CRM tools can be installed in two ways:
On-site software lets you access information from a network of devices chosen by you, not through the internet. The management and control of this type of system is totally within your company and typically offers greater security.
Cloud-based software lets you store and access your data via the web or a cloud-based system. There is usually no installation or maintenance costs, and the anytime/anywhere access is attractive to many companies.
Whatever system you choose, GRI can provide the customer database tools to ensure that these interactions are targeted, meaningful and loyalty-building for an efficient customer relationship program—saving your team time, money and effort—and creating a more rewarding overall customer experience.