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Customer retention is one of the most profitable strategies for growth. However, only 18 % of companies focus on retaining customers, compared to 44% that focus on acquisition. This can be surprising as the probability to sell to existing customers is 60% to 70%. On the other hand, businesses have less than a 20% chance to sell to a new prospect. Additionally, existing customers also tend to spend 31% more than new customers.
In other words, market leaders need to make customer retention a core aspect of their growth strategy, whether that's by partnering with a Customer experience agency for invaluable insights or by implementing internal initiatives to drive engagement. Without developing effective best practices to prolong customers’ lifetime value, businesses can be at risk of incurring high churn rates (leave rate). Nine out of ten companies agree that customer experience will be an essential prerequisite for customer retention. Therefore, the only question market leaders should focus in priority on answering is: How do I create the best experience for my customers?
They prepare for the worst-case scenario
We don’t want to think about it. But the truth is that sometimes sh*t happens. Even the best plans can go unexpectedly wrong. Your customers are going to be affected by mishaps and incidents along the customer journey. For instance, online shoppers could experience parcel loss, which can be stressful if the business doesn’t have an established action plan. Planning for the worst-case scenario means that you can react rapidly, effectively, and in your customers' interest. For instance, online retailers may be interested in insurance covers for parcel loss or damage; this package insurance covers products sold online. Why is it important to be prepared? Because your customers are impatient and mishaps can make them irritated and stressed out. Being able to sort out the issue rapidly and provide hassle-free refunds or replacements will be perceived positively. It’s not the problem that affects the customer experience; it’s your reaction to the problem.
They streamline their operations
As mentioned, customers are impatient. With brands like Amazon offering same-day deliveries, businesses need to be creative to meet customers’ expectations. Thankfully, customers are happy to accept that small brands may not be able to provide the same level of services as monopoly organizations. Yet, while you might not be able to use AI robots inside your warehouse like Amazon, you should still consider strategies to streamline operations. Delays in deliveries rarely occur during the delivery route. More often than not, businesses waste time between the moment an order is received and the moment it is shipped. Therefore, using Technology as part of your shelving, picking up, and preparing processes can save time.
Additionally, adequate space use will be crucial to meeting your delivery deadlines. Crammed warehouses can waste time in searching, stocking, and locating items. Ineffective warehouse layouts will also be a source of problems.
They speak their language
Are you selling abroad or selling to a diverse audience group? Then, you need to make sure you can speak the same language as your customers. Using localizing tools for your digital presence can ensure customers always read the more relevant content for their locations. This can be both language and information if your business has location-specific offers. Ideally, you want your customer service team to be able to speak to international customers. Hiring a global team can be helpful. However, translated FAQs and email workflows can work wonders for simple queries. Outsourcing international customer service when you approach a global market can be a good idea.
They mix AI and human assistance
Chatbots are highly effective, especially as 64% of internet users expect 24-hour service from businesses with an online presence. As a result, chatbots can tackle emergency queries and help find a quick answer. Over 60% of Millennials use chatbots frequently to find the goods they need. In other words, artificial intelligence is an essential requirement for customer interactions. However, AI bots can also offer a lot of support. For specific queries and more complex issues, customers prefer to interact with a real person. Providing a smooth customer experience carefully includes a healthy balance of AI and personal interactions, ensuring customers can always receive the best support.
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They make them feel valued
What makes customers want to stay with a brand? Customers want to feel valued and recognized by their favorite brands. From offering special discounts to existing customers to early access to new collections, businesses have various options to care for their audience groups.
Does a satisfied customer stay with a business after a purchase? As surprising as it sounds, the answer is no. Satisfied customers are not loyal shoppers. Brands must create a positive experience for their customers, from when they get in touch to when they deliver the goods or services. Customer experience builds loyalty and advocacy and encourages customer retention.
