Studies suggest brands spending more on customer retention have a higher chance of gaining market share, compared to those spending more on acquisition. It may sound intuitive to spend more on retention to improve your bottom line, but it’s complicated to figure out which methods will work for your business. Fortunately, you can get started today simply by focusing on your customer’s pain points and level of engagement.
From here, you can concentrate on building credibility, loyalty and consistency with your customers, building a relationship based on trust.
Target their pain points
Earn customer loyalty by focusing on their pain points, and not just your bottom line. Customers gravitate towards companies and products that speak their own language and understand exactly how to address their needs and resolve their issues. For example, instead of marketing your software towards busy accountants, market it towards small business accountants who need help managing their customer onboarding experience to reduce their daily workload. Your ideal client is more likely to keep buying from you if they feel you truly understand their unique needs and cater products just to them.
Create a community
Offer unbeatable value to your customers by creating a community around their specific needs. For example, a company selling baby products to stay-at-home Moms can create a Facebook group for their customers. Answer questions about your products, while giving helpful advice and posting relevant news that targets their lifestyle. American Express does this well through their OPEN Forum community where they post useful resources for business owners looking to scale their companies. Remember to regularly solicit feedback and insights from your community to turn it into an engaged community.
Respond to crisis
Ignoring data breaches, product failures and flawed customer service can permanently damage your company’s reputation and drive off customers in drive. Meanwhile, adequately responding to a crisis and staying transparent can actually retain customers. Apologize profusely, listen to complaints and own up to your mistakes. Simply taking ownership can go a long way with customer trust and believing that the issue won't happen again. Explain the steps you'll take to keep the issue from happening again whether employing a more robust data backup system or hiring a dedicated person to oversee the problematic area.
Give a shout out to customers
Customers love feeling important and like an integral part of your company’s success. Empower them to succeed by calling them out in a newsletter or social media. Give credit to their success, publicly name their business or services to help spread the word, and hail their praise. The more you single them out as loyal customers that you appreciate, the more likely they are to stay. This method also has a secondary benefit of inspiring other would-be customers by the social proof you’re providing, and foundation that you care about your customers.
Customer engagement is unique to each business whether through building a business or offering webinars, but it all starts with communication. An email sales funnel to help hook customers is just the first step in the process. Your business also needs an automation funnel to re-engage customers. Set up a monthly newsletter highlighting your customer's pain points and their success stories and leave off with a discussion or engagement question. From here, you can drive them to an online community whether in a forum or Facebook group to continue the engagement and keep people inspired.