If you’ve ever developed a marketing strategy for any business, you surely know that getting new clients and also raising brand awareness are amongst the most important objectives of marketing strategies. But one thing that a lot of companies usually neglect or forget to invest is customer retention. This could be huge mistake in the long run and not only it can impact your business financially, but also damage your branding.
Methods for customer retention seek to create loyalty for current customers. They keep them from switching sides to industry rivals or entirely withdrawing to use your services. The biggest benefit of customer retention is that by continuously delivering a high level of customer support and user experience, it enhances customer lifetime value.
Why does customer retention matter?
It is 6 to 7 times more costly to gain new clients than to maintain current ones, as per research done in 2015. In comparison, an average of 12 good consumer experiences are needed to make up for one negative one.
Then again, 72% of shoppers appear to share their good experiences, while 67% of shoppers are ready to pay more for a better experience. These figures are strong signs that it is wise to invest in customer retention alone.
While e-commerce is becoming more popular and competition grows, marketing costs could only be expected to rise as well. Companies should concentrate their attention on designing marketing campaigns that produce a high Return on investment with all that in mind. One strategy to assist in this regard would be customer retention via social media.
Looking at the numbers is the best way to assess consumer retention and loyalty. There are 3 factors you should know:
X: the number of clients you started with
Y: How many customers do you have right now?
Z: How many of these are new buyers
The following formula is then applied: (Y-Z)/X x 100 = CRR (customer retention rate)
For instance, if you began with 20 clients, had 50 new clients, and now have 60 clients in total, your CRR will be 50 percent. This means that the process has lost 50 percent of the customers.
Are you able to follow and improve your CRR with a few easy-to – implement methods? If so, here are six good steps to enhance customer experience and create brand loyalty.
PRACTICE ACTIVE LISTENING
In order to enhance the user experience, the simplest way you could use is to utilize your presence on social media to listen to what your clients are saying. Active listening, with reminders or social listening apps, is easy to manage. Plus, it contains useful knowledge about your services and goods.
Whether you are getting good or bad feedback, this form of approach helps you to recognize your weaknesses and strengths, and in subsequent marketing strategies, you will build on those feedbacks. In addition, to understand client pain points, you may use constructive listening techniques. In the future, this is a great way to build your offer.
A bonus of social listening is that it helps you reach out to others who would not have shared explicitly with you their bad encounters. This opens up “redemption” space and keeps complaints from going unresolved and affecting the reputation of your company.
ANALYZE CUSTOMER BEHAVIOR RESEARCH
Besides telling you the truth about what the clients really want from you, social media also helps you to find out more from the clients themselves. Personalization has an immense role in user experience. And social media could be a method for you to integrate it all into your marketing plan.
Engaging with followers helps you to learn more about them as well their behaviors. Handy applications such as Instagram’s insights and Facebook Analytics allow you see things such as demographic audiences, active hours, and data on content you share.
But perhaps more significantly, by making a deeper dive, you will figure out what other companies your customers have noticed and how they’re interacting with content. With this knowledge, you can then focus on your own marketing campaigns and change them to better suit your audience.
ENGAGE IN GOOD CUSTOMER SUPPORT
Customer experience is a big selling point, and clearly it often affects customer retention. An effective approach that you can follow is to expand the channels whereby your customers can access you.
Getting a strong presence on various social media sites doesn’t only boost your reach. It offers you the opportunity to react to any future issues in real time, in a manner that needs less work on the part of your clients. This lowers the risks of increasing dissatisfaction and helps you to properly monitor the effectiveness of the products or services.
Support accounts, like this one from Xbox, might also be a great way to exchange instant feedback with users on technological glitches or temporary problems.
Additionally, you might take a look at what Ultimate Meal Plans did as an example. They have set up a special Facebook page for their clients. Their users can ask direct questions from mentors and fellow service members. This way, they exchange insights and gain consistent assistance on their weight loss path.
OFFER EDUCATIONAL AND USEFUL CONTENT
Orienting your activities to give consumers extra value for their bucks is one of the greatest customer acquisition tactics out there.
It is for this purpose why some companies chose to produce instructional content that can be shared with their fans. It’s an easy way to draw attention to the service you’re selling. In addition, it can be achieved in a continuous manner to help customers by exchanging tips and techniques or different ways to use the services.
Since it is so good at promoting engagement, social media could just be the perfect place to introduce this sort of content.
You should look for inspiration in Under Armour. Instagram posts and stories of the brand involve a host of at-home exercises created by the partners. The best thing is, their fans don’t have to go looking for such posts. Rather, they appear organically on their social media timelines.
USE USER-GENERATED CONTENT
You may also opt to share posts made by your users on your social media, in addition to professionally generated content by your team. Since user-generated content is produced by influencers and normal users, it is much more likely to impact buying decisions. Although, even more critically, it gives you an opportunity to connect with your current customers and reward their loyalty.
The creation of a hashtag is a simple way to execute this technique.
For instance, the mattress firm Zoma has developed the #SleepToWin hashtag on social media. With it, the brand invites all fitness enthusiasts and professional athletes to share their experience with their products. In the end, this leads not only to a higher degree of loyalty, but also in simple-to-acquire social proof that can be used on their website.
SHARE EXCLUSIVE OFFERS
You should never neglect, the effect of pricing on sales. Particularly when it’s combined with a nice shopping experience.
Although new clients may be hesitant to test out your services and products, those that have already ordered from you will be even less likely to turn if you offer an extra opportunity at a discounted price. The basic explanation for this is that these consumers are already acquainted with your goods. And with social media, you can also use your familiarity to obtain an extra advantage across your rivals.
Or, if you currently have a loyal customer base who follow you on a host of channels, don’t overlook to let them know about any deals, exclusive offers, or gifts. In the end, it might only be the element that raises the lifetime value of them.
Customer retention does not need a massive investment, yet offers outstanding returns. When paired with the social media marketing plan of your business, it will produce much more performance at a lower cost. Although you can use some of the six techniques we’ve discussed here, it’s essential to ensure you do so in a way that represents the basic principles of your brand. Pay close attention to the tone, aim to generate useful content and, of course, concentrate on customer service. You’re going to have a recipe for success that will function for years to come.