Marketing strategies make it possible for a brand to be globally-known, despite being new to the market. The logic behind marketing strategies is for people to know and remember your brand, so every time they think of buying something, your brand name will come first in mind.
Customer retention can be acquired through several marketing tactics and how you take care of your customers before, during, and after a transaction. One of the reasons brands use several marketing strategies and offer after-sales care is to increase customer retention. It’s difficult to penetrate the competitive industry of eCommerce when you are not known by many, let alone when you don’t have repetitive customers. With the variety of products and services offered through eCommerce today, it’s hard for customers to be loyal to one brand only. Most people would try various brands before they stick to one that they can fully trust.
So how does customer retention make your business grow? Here are five reasons how customer retention can help promote your brand:
Customer Retention Build Profitable Relationships
Finding ways to retain customers must be one of a brand’s primary goals, as the business can benefit a lot from repetitive customers. Making sure that customers are satisfied and happy can lead to loyalty which can then lead to a profitable relationship.
Taking good care of your customers allows your brand to build strong relationships with them over time, increasing your profitability. Some brands are more invested in gaining new customers than retaining old ones, which do not always end well. Repeat customers are much easier to sell to than the next potential customer because they already know how your brand’s service is and how good your products are. Coming back to avail of your service after some time translates to having excellent customer service. Customer retention is vital to your brand’s longevity.
Retaining Customers Cost Less Than Acquiring New Customers
Retaining customers doesn’t mean you should stop acquiring new customers once you have repeat customers, no. It simply means that it costs way less to keep existing customers than to gain new ones because you don’t have to put much effort or spend double on any marketing strategy for repeat customers.
On average, it costs about five times more time, money, and effort to acquire new customers than to retain existing customers. It should be a goal of a business to earn more and spend less, and a high rate of customer retention fits right to that description.
Did you know that, on average, almost 70% of a company’s sales come from existing customers? Loyal customers tend to buy more frequently in large quantities. They already know and trust that your brand can provide everything they look for in a product or service, leading to repeat purchases time after time.
Loyal customers get the feeling of being valued. The more they feel comfortable with your brand, the more they want to make additional purchases because they know that your business will most likely listen to their suggestions and requests.
Loyal Customers Make Time To Provide Helpful Feedbacks
Loyal customers are more aware of what areas your business needs to improve because of their frequent purchases. Since they know you care for them, they will also give the same amount of care for your business. Loyal customers can be honest at times, but honest feedback is helpful to the company. It gives you leverage to know what your customers need, compares solutions, and improves on the next transaction.
Customer Retention Acts As Free Promotion
Loyal customers love to share stuff they’ve bought on their social media accounts, and this forms word-of-mouth advertising. It works as free promotion for the brand because various people from different parts of the world have a huge chance to see the product on the customer’s post, which can spark curiosity, especially if the post gains massive attention.
Some customers are proud to show off the brand they have, that they would even go tagging the brand’s official page on popular social media sites, which sparks the interests of their followers and friends.
Word-of-mouth advertising ignites a call-to-action to the audience. One example could be skincare products. Social media users often get questions like, “how did you achieve a glass skin” “what lipstick do you use” “what sunblock did you get for going to the beach,” and many more related questions. Because there are people who want to achieve what you got from the brand, they will want to try the brand as soon as possible, which contributes a lot to the brand’s sales.
Thriving businesses need to know how customer retention can make an impact on their sales. Taking care of existing customers should also be on the top priority lists of companies, as maintaining a trustworthy and reliable reputation can help your business grow more rapidly and gain more customers.