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5 customer retention strategies to grow your business

It’s 5x more expensive to acquire new customers than to keep existing ones. Increasing customer retention by 5% can increase company revenue by 25-95%. Highly engaged customers… View Article

RETAIL SOLUTIONS

5 customer retention strategies to grow your business

It’s 5x more expensive to acquire new customers than to keep existing ones. Increasing customer retention by 5% can increase company revenue by 25-95%. Highly engaged customers spend 60% more per transaction. Customer retention matters. If your business isn’t prioritising it, it’s time to start.

Mention Me was founded on the belief that happy customers make successful businesses. Now, as we approach a post-Covid world with spiralling acquisition and advertising costs, that’s truer than ever. Read on for five customer retention strategies to keep your customers coming back.

Strategy 1: Show customers you understand them

How well do you know your customers? Chances are, not well enough. 63% say organisations should prioritise getting to know them better. Marketers often rely on quantitative data that doesn’t give the full picture. Your data may, for example, tell you that customers are most likely to open your emails and buy in the evenings, but they won’t tell you why that is.

That’s where A/B testing comes in.

By strategically segmenting customers then experimenting with elements like copy, design and touchpoints, you can drill down into what engages who. Then you can use this insight to tailor customer journeys and build brand affinity that converts into long-term revenue.

Strategy 2: Reward customer loyalty

32% of consumers cite loyalty programmes as the best way brands can encourage them to return. If you’re worried about what this means for your profit margins, don’t be. There are plenty of ways to reward customer loyalty without cutting prices.

Early access to sales, exclusive event invites, member-only competitions… the list goes on. Get creative with your rewards to discover what works best. In fact, customer loyalty programmes can seriously bolster profit margins. French beauty brand Sephora drives 80% of annual sales via its Beauty Insider rewards programme.

You can also use your loyalty programme to better understand your most valuable customers. By learning what motivates them to return, you can refine messaging and more accurately target campaigns. Creating a positive cycle where customers choose your brand because they feel understood, then return as their loyalty is rewarded.

Strategy 3: Provide excellent customer service

…To read the full article, click here.

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