A customer retention program is simply a structured initiative or series of initiatives designed to enhance customer satisfaction and promote them to continually evangelize and repurchase a particular business’s product or service over again. Customer retention programs can either be business-driven, for example instituting an employee onboarding program, or customer-driven, for example using a mobile application to make purchases at a selected retailer. These initiatives can also be implemented internally, such as implementing a series of quality focused training sessions targeted at ensuring that all employees are fully aware of all aspects of their industry and are equipped with the tools and skills required to effectively serve customers. However, before implementing any of these internal initiatives it is important to first identify your customer and develop a strategy around them. Then implement the program based on a customer and team assessment of their needs, wants, and goals.
The focus of any customer retention program should be to drive new customers in through an improved customer lifetime value (LTV). A customer lifetime value is the measure of value gained by an individual or organization from their interaction with a business or organization. It is important to understand that a customer holds many different financial investments, both financial and non-financial, which need to be tracked and evaluated. One of the key indicators of a successful customer engagement strategy is the consistent and continued growth of new customers. A solid customer lifetime value provides a positive foundation for attracting new customers, improving the retention of existing customers, and driving repeat sales. Therefore it is important that any customer retention plan focuses on building a customer relationship management base that is capable of growing and supporting the business into the future.
Loyalty programs often focus on increasing customer loyalty, but what is the most critical loyalty indicator for your business? For many businesses, customer loyalty is defined by an internal rating system using metrics to determine customer satisfaction and customer loyalty. Customer satisfaction and loyalty are usually measured by the percentage of customers who return for an additional purchase or who return to use a specific service again. These loyalty measurements are a good basis for an overall customer satisfaction and retention strategy because customers who are satisfied with the products or services they buy will tend to remain with the company even if they encounter a change of management. A company may also gain some cost savings by increasing the level of loyalty and turn-over prevention if customers who are not very loyal to the company are encouraged to leave.
Another way to evaluate your current level of customer retention and success is to look at your marketing mix. How well do you communicate with your target audience? Remember that customers who receive excellent communication from the company and are aware of the company mission, goals, and priorities are more likely to remain with the company for a longer period of time. A great example of a great marketing strategy is to create a loyalty card that gives the customer additional opportunities to receive discounts and free gifts when they stay with the company.
In addition to a loyalty program, you might also be able to use other customer retention tactics like rewards programs to motivate repeat business. For example, you could create an incentive program for new clients that provides them with a coupon or gift card for a minimum amount of time. This provides the customer with an incentive to come back to the company, which in turn will encourage more referrals. Another great social media marketing strategy for retention would be to create a Facebook Fan Page. Encourage people to “like” your page so that their friends can see what’s happening with the company. This is another way to communicate with your target audience because it encourages them to connect with your brand on a personal level.
Last but not least, your customers also expect and appreciate a great customer service experience. To ensure a positive experience for the customer, be sure that all of your employees understand the value of a pleasant customer experience and are willing to go above and beyond in order to ensure that your guests are completely satisfied. You’ll be able to attract and retain the best talent in the industry if you make customer service one of your company’s highest priorities. From the front office to the front line, you can find all sorts of employees who are willing to go above and beyond for the enjoyment of the customer.
These are only a few methods that you can use to retain customers. Keeping them is often one of the most important factors in the success of a business. By implementing these strategies, you’ll be able to keep customers happy and coming back for more.