All brands have a common goal: to grow their business and make a profit. Naturally, each brand goes about expanding and increasing its revenue stream in different ways. While some brands focus more on acquiring new customers, others prioritize retaining their existing ones. But which is the best approach?
If you consider the fact that companies spend up to 7 times more when trying to acquire new customers compared to retaining existing ones – and that simply increasing retention rates by 5% can actually boost profits by as much as 95% – then focusing more on customer retention is a no-brainer.
But what if there was a way to not only retain your current customers but also make them so happy that they can’t help themselves from spreading the word about your business to their colleagues, friends and even strangers?
It sounds a little bit like wishful thinking, doesn’t it? But it’s actually possible.
With a customer retention and advocacy strategy, your business can improve customer retention while also turning current customers into brand advocates that will go out of their way to bring your company new business. But like most things, this strategy is easier said than done.
A successful customer retention and advocacy strategy requires the highest level of customer service and an engaging community that customers actually want to join.
Provide The Service Customers Expect
For any business, providing good customer service seems obvious – especially when you consider the consequences of delivering bad customer service. For example, 72% of customers will not hesitate to switch over to a competitor after just one bad experience. But now, more than ever, customers expect more than just good service.
Customers want world-class customer service. They also want to enjoy their entire experience with your brand. This means providing an intuitive website experience, a personalized buyer’s journey and brand transparency that will make them fall in love with your business.
When your customers are happy with the product and experience your business provides, they will want to keep being your customers, and they will want to tell others how much they enjoy your company.
Create an Engaging Community (or Never-Ending Digital Party)
Creating an engaging community is about providing a space where your customers can interact with your brand and with other people around the world. And there’s no better way to do this than with social media.
Social media can help your company create a community that feels like a never-ending digital party that your customers actually want to attend – and also invite everyone they know.
When expertly used, social media can be the hub of your community and the key to a successful customer retention and advocacy strategy. In fact, 70% of people are more likely to make a purchase based on social media referrals, and 90% of people will recommend a company after simply engaging with them on social media.
But no one will want to be a part of a community if it’s boring, right?
Get your customers excited about your community by actually interacting with them and giving them reasons to engage. This means being on a first-name basis with them and providing interactive content, sharing creative metrics and hosting special events like online webinars and live streams.
Once you provide your customers the platinum-level service they deserve and the community they actually want, create a loyalty and advocacy program where they are rewarded for being your customers – and are also encouraged to tell everyone in the world how much they love your company.
If you need help creating a successful customer retention and advocacy strategy that is tailored to your unique business and what your customers expect, reach out to DeanHouston+!