In recent years retail brands have developed a greater focus on establishing good relationships with their customers, instead of just trying to sell their products. With market dynamics constantly shifting in one direction or another, customer retention has been the primary focus for retail brands as they struggle to repeatedly win over customers and compete in a highly competitive market.
With return customers spending 15% more on a single purchase and 120% more annually, it’s no wonder that brands are seeing a significant impact on their bottom line. Here are four customer retention strategies that can benefit your business.
Deliver an exceptional experience
For modern consumers, it’s no longer about purchasing a specific product. In fact, it’s about the whole experience a consumer has with your company, from the first touch to the moment you engage them as a lead and even after they’ve made a purchase. In other words, you have to engage customers/prospects at every step of their buyer’s journey. That being said, the essence of customer retention is in delivering an exceptional customer experience.
For retail brands having a brick-and-mortar store doesn’t mean that they’re disengaged from the online world. Brands must leverage omnichannel marketing to deliver value to their customers whenever and wherever they need it. That can include engagement on web pages, social media platforms, email newsletters, a chatbot or whatever is required to deliver a seamless customer service and support. Therefore, it’s not about whether your customers will come in contact with your store through online or offline means. It’s about you delivering a seamless experience to them that will encourage their engagement, create memorable experiences, build advocacy and stimulate purchase.
Showcase your values through marketing
Marketing is essential not just for acquiring new customers and promoting your business, but for retaining customers as well. Marketing is the most crucial effort for both your business and your customers. Brands should strive towards delivering exceptional experience and value. Your personalized promotions, campaigns and communications must convince customers to make purchases and become a brand advocate.
So how can brands stand out from the noise in a highly competitive marketplace? It’s crucial to be unique in your offering, even if what you offer isn’t particularly exclusive, the way you communicate your value to your audience must be unique. Your image, values and distinctive brands assets also play a role in the way you display and communicate your brand. Brand consistency plays a vital role in this endeavor, as you must maintain your brand image, perception, and experience across channels and markets. Consistent messaging through your marketing efforts will ensure customer interest and engagement. You can also rely on digital asset management software to carefully develop and design your marketing campaigns while ensuring consistency across various media channel and markets ensuring that you never deviate from your brand’s image and promise.
Include a loyalty program
Having an effective loyalty program in place is an excellent way to ensure customer loyalty and retention. Today’s consumers expect to be rewarded for loyalty Having a loyalty program means you’ll deliver value to customers who engage in repeat business. Loyalty programs are very efficient at ensuring customer retention, and if you improve the retention rate by just 5%, your profits may increase up to 95%.
Moreover, 73% of consumers will recommend brands with good loyalty programs, which can help you extend your reach through existing customers. What’s more, 66% of consumers who are part of a loyalty program will adapt their spending, in order to maximize their rewards. Which type of loyalty programs you’ll implement depends on your brand. Just make sure it’s a program your customers will enjoy and benefit from.
Offer excellent customer support
Consumers have specific expectations and needs when it comes to shopping in retail stores. Being unable to meet those expectations and needs drives customers away. As a matter of fact, 89% of your customers will shop at your competitor’s store after receiving bad customer service and support at your store. That’s why you must deliver excellent support and service to your customer whether in-store or online.
Educate your employees to greet customers properly and ensure they’re made available for any questions customers may have. Also, make sure your customers can contact your company at any given moment if they have any inconveniences or misunderstandings. Moreover, be proactive when offering service or support and don’t wait for them to come looking for it. That way, you’ll ensure that their experience with your brand is exceptional and that they’ll surely return for repeat business.
Customer retention is essential for the success of your business. With oversaturated and highly competitive markets, it’s important to make your brand stand out by offering customers value and an exceptional experience, which will encourage them to shop, browse or purchase from you again.
