How to keep customers and clients coming back for more

New customers and clients are great, but it’s the existing ones that will make you the most money. Repeat customers spend more and cost less. Not convinced? Check out the stats:

• According to Marketing Metrics, if a customer has previously made a purchase, there is at least a 60% chance that they will make at least one more purchase.  Meanwhile, if a new visitor clicks on your site, the chances of that person becoming a paying customer are only 20% at the most.
• Recruiting new customers costs five times as much as retaining current customers
• It is 16 times as costly to build a long-term business relationship with a new customer than simply to cultivate the loyalty of an existing customer.

This tells us that brand loyalty is more important than ever. If the average customer spends 67% more in their third year as a customer than in the first year then customer retention should be a priority. Surprisingly, less than a third of business executives consider it so. This is a big mistake.

Here are 10 ways to retain your existing customers:

1.Focus on customer service

It’s obvious that the features, design and quality of a product or service are leading factors in determining brand loyalty. But customer service also plays a big part: research shows that customers will abruptly end their relationships with companies because of poor customer service. Businesses need to deliver the whole package to keep customers happy and that includes impeccable service. After all, a customer who is ‘totally satisfied’ delivers 2.6 times as much revenue as one who is ‘somewhat satisfied’.

2. Be convenient

Make your products or services as accessible and as easy to use or purchase as possible. Starbucks Mobile Order & Pay feature in their app is a great example. Customers can order their coffee before they even arrive at the shop.

3. Offer rewards and loyalty programs

82.4% of customers are more likely to shop at stores that offer some type of rewards program. This then translates into loyalty program members spending 12-18% more revenue than non-members.

How does this help retain existing customers?  77% of shoppers say a rewards program make it more likely they will make additional purchases with a brand. Unsurprisingly, it’s the surprise rewards and personalised rewards that keep customers most loyal.

However, it is important to know your demographic. According to Yes Lifecycle Marketing, different age cohorts respond best to different types of promotions.  85% of Generation X customers (born 1965-1980) prefer discounts, while Millennials (born 1981-2000) prefer reward points.

4. Use subscriptions

Offering members-only benefits like faster deliveries or better deals is an effective way to keep customers on board. Take Amazon Prime, members receive perks like free shipping along with free movies, music, books, and photo storage. As a result, 91% of Prime members renew for a second year and 96% of those subscribers pay for a third year.

5. Use referral programs

Encourage customers to refer a friend and reward them with discounts, products or services. Make sure the reward is something they want – give them a strong incentive. Referral systems can be really effective for retention.

6. Provide social proof

We all read reviews before we buy. We are more likely to trust opinions from family, friends, and other consumers than branded content and ads. If customers see social proof that other people just like them have the product or use the service, it makes them want it too – FOMO is a powerful marketing and retention tactic. Customer testimonials and reviews can not only attract new customers, they can convince existing customers to stay loyal or upgrade their products.

7. Say thank you

Show your customers how much they are valued. 77% of customers appreciate when companies express their gratitude.

8. Use personalisation

Don’t send out standard emails en masse, make messages personal. 60% of customers say personally addressed messages are more genuine. Importantly, communicate with customers on their preferred channels. It could be email or it could be Snapchat or Twitter – interact with them directly in a way that suits them.

9. Educate and help

Once you have made a sale, take the time to build a relationship. Offer top tips on your products or services, how-to videos and blogs on relevant topics. To do this well, it’s important to have a good understanding of your customer, what they want and what challenges they face. Customers will stay loyal if they see you as a valuable source of information.

10. Be honest, reliable and human

Build a reputation for honesty; don’t up-sell products or services unnecessarily. And admit mistakes when they happen, taking responsibility and finding solutions. Customers and clients will appreciate your honesty and will be more likely to stay longer.

Do what you say you’re going to do when you say you’re going to do it; be consistent and reliable. Customers like a safe pair of hands.

Most importantly, keep your customer data safe. Never misuse information; customers will ditch you immediately if personal data is used without them being notified first. Customers and clients need to know they can trust you.