Proven Ways to Increase Customer Retention through Digital Marketing
“Increasing retention by just 5% can lead to doubling the profits”, as per a study by 99 Firms. This is a clear indication you should focus more on customer retention. In this digitally oriented world, customers have a lot of options to shop. And they can quickly move on without buying from your brand anymore. So, your marketing strategies should ensure that your customer’s interaction with your brand is fruitful, and they come back again for the next purchase.
Although it is easier said than done, increasing customer retention rate is one of the prime factors for your brand’s success. However, many businesses fail to create a seamless experience for their customers and loose clients. And decreasing customer retention will eventually lead to a drop in sales.
Then, you have to invest more on customer acquisition. This may or may not be successful depending on how you are trying to retain those new customers who visit your brand. Finally, it comes back to the point that creating a good customer experience is essential to the progress of your business. So, how do you increase your customer retention rate and what are the plans you need?
To understand more, let’s see the top 5 proven ways to improve customer retention rate.
Define Your Target Audience
Gathering customer data from various sources and segmenting your target audiences is crucial. Without defining your target audience, you can’t understand who your actual customers are. Hence, audience segmentation is very important to divide your target market.
Segmenting and deriving insights from your audience helps you get to know more about your customer buying behaviours, their needs and expectations. By precisely analyzing your target group, you can send them targeted ads and personalized campaigns at the very right time and through the best channel.
Data onboarding improves customer retention
Offline brands often rely on offline marketing to market their products and services. Even if they have an online presence, they are not very active in the online ecosystem. Indeed, it forms a barrier for offline brands to reach their target audience digitally.
So, to overcome this challenge, now offline brands can perform CRM data onboarding and bring their offline data into the online environment. Data onboarding allows you to target your offline audience in online space as well.
It is an additional advantage for offline brands. They run not only offline campaigns but reach out to their target group through online channels as well. It definitely helps in increasing customer retention as you as an offline brand can contact your prospects through popular online channels and create a comprehensive omnichannel experience.
Analyze all customer touchpoints
Customers today are using more than one device to make a purchase decision. And the online environment is endowed with a wide range of channels and platforms. So, your customers will not stick to one stop while making a purchase; instead, they go on a buying journey through various online and offline touchpoints.
For instance, a customer who is planning to buy a phone will not straightway go to one brick&mortar shop and decide to buy. In fact, they will check different websites and reviews, visit a social media page of the brand and if they’re convinced, then make a purchase.
So, if you observe, your customers begin the shopping journey in one channel and end up buying in a completely different one. Therefore, tracing your customer journey through all the touchpoints will help you analyze which of these them have been successful in creating a conversion.
And, you can understand whether your customer had a smooth journey through these touchpoints. All this contributes to customer satisfaction (and customer growth) and ultimately leads to recurring purchases.
Provide outstanding customer experience
As discussed previously, you need to find out whether your customer had a good buying experience with your brand. Yes, if at any point, your customer is not satisfied, they may abandon your brand for good and move on to another brand. So, creating a superior customer experience is quite crucial.
To do that, you need to analyze why a customer didn’t wish to purchase your product. And what are the challenges they faced while interacting with your brand. Then, you can build strategies to ensure your customer has a seamless experience from start to finish.
It ultimately leads to the purchase and increases the number of loyal customers for your brand.
Take care of new offers and discounts
Who doesn’t like a gift or discounts while shopping? Everyone does, and it indeed attracts many more customers to your brand. Not all customers are willing to buy products which are hard on their pockets. Often they wait for some discounts to finally make a purchase.
You can leverage giving reward points, discounts and offers to your loyal customers to increase the conversion rates. And it also drives your customers towards your brand. Of course, it may not be a deciding factor, but your customers will come back to your brand for the next purchase.
With these simple tips, you can surely increase your customer retention rate and create a win-win situation for your business.
Customer retention improvement: wrap-up
To put it briefly, customer retention happens when your customers are satisfied with your products and services. So, by removing the roadblocks from your customer’s journey, you can create great experience that leads to long-lasting relationships. It, in turn, will help in building trust between your brand and customers and increase your customer retention rate.