How to retain customers in a super competitive market? Tips + examples
Knowing how to retain customers can be the passport to your business success. Does it seem like an exaggeration? Well, know that surveys have found that 65% of companies’ business comes from old customers.
In addition, 43% of customers are willing to spend more on brands they are loyal to.
The impact of customer loyalty on the company’s average ticket is notable, as are the indexes of referrals to new customers.
Do you want to know how to retain customers and enjoy all these benefits? Read on to find out more about the following tips :
- Offer an exemplary customer experience
- Invest in After Sales and Customer Success
- Do not abandon the customer after purchase
- Bet on cross-selling and upselling strategies
- Offer special conditions on subsequent purchases
What is customer loyalty?
Customer loyalty is the name given to the set of strategies used to keep a customer buying from a company on a recurring basis. According to the Michaelis dictionary, loyalty means “To make a customer loyal to a product or service”.
Why is it important to invest in customer loyalty?
There are many reasons why knowing how to retain customers is important to the business. Below, we’ll show you some of them.
1. Retaining customers costs less than attracting new ones
Philip Kotler, the marketing guru, has already said, in one of his works, that retaining customers can cost 5 to 7 times less than attracting new ones.
2. Strengthens referral marketing
In addition to costing less, knowing how to retain customers also has a positive impact on the company’s referral marketing. After all, those who like a service tend to spontaneously offer it to friends and family.
And this is one of the most effective ways to win new customers! The proof is this research, by Nielsen, which shows that 92% of global consumers completely trust the indication of a friend or family member about a product or service.
3. Helps to maintain the company’s average ticket
Loyal customers who make recurring purchases, such as subscription packages or periodic stock replacements, contribute to maintaining the financial health of the business.
And this is perceived through the average ticket indicator, which calculates the volume of sales in a pre-determined period, and which directly impacts the business’ cash flow.
How to retain customers? 5 tips
Understanding customer loyalty also helps to understand why investing in strategy can be fundamental to business stability. Now that you’ve gone through this step, we can start the next one.
The time has come to discover, in practice, how to retain customers!
1. Offer an exemplary customer experience
Companies seeking to understand how to retain customers need to absorb the concept of customer experience. It is a set of customer-focused strategies and actions that actively contribute to achieving their goal without effort and with high levels of satisfaction.
This is the surest way to retain a customer: ensuring that they receive what they are looking for in a simple, intuitive, autonomous way — as far as possible — and effectively.
The investment in customer experience must pass through the entire sales force, including:
- marketing, by managing social media and the initial stage of the sales funnel in a friendly way;
- sales, by contacting the customer and ensuring that the deal is light;
- support in meeting customer needs in an agile and omnichannel way (in multiple integrated channels);
- financial, to manage collections and contracts without generating animosities;
- and so on.
2. Invest in After Sales and Customer Success
The after-sales and customer success sectors are also part of the sales force. Both are especially strategic for understanding how to retain customers, do you want to know why?
Because they are areas of contact with the consumer after closing the deal. Specifically, in these cases, the function of each one is:
- after-sales: ensure that the shopping experience was satisfactory, collect customer feedback, keep contact channels with the company open;
- customer success: guide the customer through an experience of immersion in the purchased product or service, ensuring that the use is equal to or greater than expected by providing process optimization tips.
3. Don’t abandon the customer after the purchase
Companies that sell products have greater difficulty in perpetuating their relationship after the sale is completed. But don’t be overcome by the challenge! This error can prevent you from understanding how to retain customers.
Bet on building a relationship with the customer with the help of digital contact channels. Please send a thank you email right after purchase. Then ask the customer to complete a satisfaction survey.
Also, schedule the sending of personalized offers and keep your team available for contact.
4. Bet on cross-selling and upselling strategies
Here are two key features to support customer loyalty in a company: cross-selling and upselling. Have you ever heard of these terms?
Cross-selling is the name given to the offer of products or services that complement the one purchased by the customer. Suppose your company sells courses online. The client purchased a course in eyebrow esthetics. A good cross-selling strategy would be to try to sell the course on cleaning tweezers and aesthetic equipment as well.
Already up selling has the objective to raise the average ticket per customer through superior products and service offerings to that purchased. Therefore, if the client purchased the “basic aesthetics” course, a possible upselling strategy would then be to offer the “advanced” version of the course.
5. Offer special conditions on subsequent purchases
Understanding how to retain customers also involves understanding the need to show the value given to them by the company.
This can happen in several ways, including following the tips we gave earlier. However, offering special purchase and payment conditions is a very effective strategy to retain customers, especially when it comes to e-commerce.
Reflect, for example, on the possibility of offering discount coupons, free shipping or even exclusive offers for those who make a second purchase on the portal.
Bonus tip: have a very well-trained team!
Knowing how to retain customers is one of the most effective paths for the success of a business. As you’ve seen throughout this article, to succeed in strategy, you need to abuse good relationships and tactics to provide the best possible shopping experience.
If you work in the commercial area, you know how these two variables are directly linked to the skills of the sales team, right?
To help you awaken the potential of your salespeople and boost the team’s performance in customer relations, how about investing in the best training in the market?
IEV – Institute of Specialization in Sales, has been in the market since 2014. Over the years, it has developed expertise in developing salespeople and training high-performance leaders. Our methodology has, as tools, the diagnostic analysis and the elaboration of personalized materials according to each need.