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Five Tips to Increase Customer Retention

Category: Customer Experience

Five Tips to Increase Customer Retention
Mohab Customer Experience 0

Five Tips to Increase Customer Retention

If your company’s focus is solely on customer acquisition, you need to pause and reconsider your strategy. A study by Bain & Company in collaboration with Earl Sasser of the Harvard Business School shows that a 5% increase in customer retention rates increases profits by 25% to 95%. That should be enough motivation to focus on customer retention for your business.

Let’s first understand the “why” of Customer Retention –  

Some of the reasons to invest more in customer retention include:

  • Customer retention is cheaper than acquisition.
  • Loyal customers are more profitable than new customers.
  • Long-term customer relations boost your brand reputation
  • Repeat purchases from repeat customers translate to repeat profit especially when you accept payments online
  • Loyal customers are less price-conscious than new customers
  • Loyal customers stand by your brand even in tough times
  • Loyal customers offer free word-of-mouth advertising
  • Retained customers offer valuable feedback

Now that we have established why you must have a customer retention strategy, here are some tips which can help you build that plan.

Tips to increase customer retention

Like with any other business strategy, you have to be proactive and innovative to increase customer retention. The following are customer retention ideas you can implement for your business:

  1. Create a VIP program for your customers

The status an individual achieves in life can motivate them to act in a particular way.  When you accord your loyal customers an elevated status and give them exclusive offers, they become motivated to stick with your brand. They feel honored and their new status creates a sense of belonging and they will continue shopping with you.

  1. Target customers with special offers

The best CRM tools will also provide a lot of data about your customers. A customer’s purchase history comes in handy when you want to create specially targeted offers for them. Targeted marketing not only increases conversion but also builds a strong bond between your brand and the customer.

  1. Be where your customers are

If you want to compete in your industry, you have to keep up-to-date with consumer behavior and be present where they are available. If your data shows most customers are on social media, make sure you invest in a social media strategy and interact with your customers here. You have to provide a consistent and seamless experience on all channels if you expect to retain customers.

  1. Go big on feedback and act on the information

If you don’t understand your customers, there is no way you will improve customer retention. If for instance, you have installed a new feature on your site, you need to get reactions from your loyal customers and act fast on the information. Don’t believe your team alone but ask for regular customer feedback and leverage it to increase customer retention.

  1. Build a consistent customer experience

To build trust with your customers, you need to provide a consistent user experience.  For this reason, map out a consistent customer experience such that your customers can rely on you to always come through. Don’t offer nasty surprises thinking that it is a revolutionary move.

In essence, customer retention requires a clear-cut strategy touching all areas of your business. From your free payment gateway for website to the customer service support, use these tips to increase customer retention.

 

6 years ago
Using Your Social Media Channels for Customer Service
Mohab Customer Experience 0

Using Your Social Media Channels for Customer Service

When social media platforms first came into being, they were perceived as a unique way to connect with friends, families and acquaintances. Over time, e-commerce stores or online businesses began to make their presence felt through Facebook, Twitter and Instagram. Why? Because they quickly realized that social media is an intelligent way to enhance brand awareness. It is also a rising trend to market products and services through social media channels and gauge customer reactions.

Nearly every website today has a social media page and a social media strategy in place, to listen to customers, receive feedback and resolve queries or complaints. Hence, keeping the social media connection with your target audience is essential to expand client base, improve brand value and retain existing customers. Here are the top things to remember if you wish to use social media for customer service effectively:

  • Fast response is a must – Most online stores don’t offer round the clock phone or email service. But customers expect prompt response on social media channels, whether they have a query or a complaint. Responding late can cause customers to escalate the issue through other channels, tell friends about the bad experience, and buy less from you. They might also choose not to recommend your brand. This can hamper your brand image in more ways than one. So, timely responses are always a wise idea.

For instance, on Twitter, customers expect you to reply within an hour. And if you cannot resolve the issue in 280 characters, you can lead them to direct messages. On Facebook, response time rates are always shown clearly. And you must reply within 5 minutes if you want Facebook to consider your business very responsive or fast.

  • Understand public and private resolutions – No matter what you sell online, you should be prepared for negative comments or complaints. So decide which kind of comments you wish to resolve publicly and which ones you want to keep private. As comments impact your brand image, think carefully. Consider what kind of comments you usually get, who handles them, and how you want to redirect negative comments. Decide if they should be moved to direct messaging, phone or email.

For example, if a customer makes a negative comment on Twitter, or something that requires the exchange of sensitive information, you can reply to them cordially and send an automatically embedded link to direct messages. Your reply should clearly show what to do next or where to click for further conversation.

  • Don’t ignore even a single comment – Always remember to acknowledge every review or post on social media and answer every query without fail. If you don’t “hear” a customer, he or she is most likely to leave you! Ignoring a comment would mean you are ignoring the customer and it’s not desirable.
  • Fight negative comments positively – If a customer posts a complaint or negative feedback, don’t start defending your business. Address them politely by their names or initials, acknowledge the issue, show empathy and offer a phone number or email ID to continue the discussion and take it offline. Remember that the customer is always right and a thousand other customers are reading the complaint too. So, if you show a positive attitude, you will gain everyone’s trust and support. You can collate negative comments from your past experience and make a list of positive replies which you can use later in similar situations.
  • Use tools to monitor social media customer service – Tools like Buffer, Hootsuite and Mention can help you monitor customer service activities on social media channels. Through these, you can handle customer comments and queries on different platforms, simultaneously. These tools also let you tackle issues or queries in posts where your name has been mentioned but you have not been tagged or mentioned with @. You will get notifications even when you are away.

To conclude, being positive, responsive, understanding how to deal with negative comments and using the right monitoring tools can take you a long way when it comes to offering customer service through social media. As long as you are prepared, you can offer customers a supportive environment where they will engage with your brand more and trust you enough to stay loyal.

6 years ago
Crack the Marketing Code To Attract New Customers To Your Small Business
Mohab Customer Experience 0

Crack the Marketing Code To Attract New Customers To Your Small Business

To sell your products and services as a small business, you need the right information. I have distilled the vast information available online to make it easy for you to promote your business and attract customers on a shoestring budget.

This information comprises of some old school methods of promotion combined with some modern and innovative methods. All of these activities together will yield wonderful results. I have tried to make sure that the tips suggested here are proven yet low cost methods to promote your business and attract your customers.

All of the methods listed here may not be suitable for your business type, so focus on the ways that would work best for your business.

These methods can broadly be divided into three major categories.

  1. Offline Promotion
  2. SEO and digital marketing
  3. Other innovative methods

A. Offline Promotion

As far as offline methods of promotion are concerned, we can again divide it into the following points:

1.  Volunteer work
Start volunteering for community services in your neighborhood. Arrange free health checkup camps or simply sponsor an event.  Just try it, your community, church or mosque is waiting for your services. Its worldly incentives include free publicity.

2. Host community meetings

In spite of the fact that it’s prevalent mostly in the Western countries you can try it in the East as well. Invite groups such as book clubs, football fans, local groups, and political and religious groups for a meet up or get-together. Offer freebies, discounts, donuts and coffee. They will likely come back to buy from you.

3. Distribute leaflets and flyers

One of the most powerful weapons of the old school marketing arsenal, leaflets and flyers are still relevant and effective.

4. Do some charity and conduct charity shows

Arrange charity shows and invite children and other artists to organize the show. Distribute the proceeds to the poor and the weak and get free publicity.

5. Hold in person events

Get outside your premises and offer your services outside, or simply organize an event and invite people to your place. Collect their contact information, offer freebies and discount coupons, or send coupons to their mailing address.

6. Partner with other related businesses

If you are a wedding planner, partner with music bands, flower shops, decorators, caterers and other event organizers. Partner with these businesses and distribute discount coupons and membership cards to their customers. Offer a free appetizer on their first visit.

7. Offer great customer service

Customer service is the key to success in any business – big or small. Offer exceptional customer service, so that you get a lot of referrals and word of mouth promotion.

8. Nurture existing customers and expand your customer base
Use your existing customers to expand your customer base. Give personalized gifts to your customers on their marriage anniversaries and birthdays. Offer incentives to your customers to bring more customers for you. It may be a jumbo discount or a free offer.

B. Digital marketing

Digital marketing is one of the most effective ways to attract customers to your startup or small business. Try the following action tips and experience a flood of customers pouring in:

  1. Create a website
    It’s the first step of digital marketing and a platform for all your future campaigns. Later on, you can create a blog and a video log on YouTube.
  2. Go for directory listing
    List your business on all local and popular online directories to improve your visibility. Hire an SEO professional, if it’s too much for you.
  3. Create your presence on “Google My Business”
    It’s Google’s own way of local listing and SEO for your business. It will not only create your online presence, but also increase your visibility in organic searches.
  4. Create your presence on social channels
    Choose a social media channel that is popular among your customers and audiences and use it fully to promote your brand. It can be Facebook, Instagram, Twitter or WhatsApp.
  5. Do some online advertising
    Try Facebook and Google advertising. It instantly brings results, leads and traffic. This is the fastest way to convert your prospects well before you appear on organic searches.

C. Other innovative methods
Apart from these, there are some other innovative methods as well that you can try to attract customers.

      1. Leverage influencer marketing through word of mouth
        Use your existing customers to act as your brand ambassadors. Offer “real” and “valuable” incentives for every sale you close through those customers. You can also use them to distribute your flyers etc. Reward the people, who mention your brand in their public meetings and social gatherings. Run campaigns like, bring 5 customers and take your free gift, etc.
      2. Offer free gifts, discounts and deals
        This is a great way to promote your business. “Free” is a magic word in the world of business, use it to your advantage. Look for opportunities to offer freebies.
      3. Arrange contests

    Contests are a great way to attract customers. Arrange both offline and online contest. Use your creativity.

    4. Share your knowledge

    Sharing knowledge is a great way to promote yourself and your business. You can use a blog, a Vlog(video blog)            or an event to share your knowledge. Make sure it offers value to your customers.

    Final thoughts
    There is a long list of tips you can try to promote your business and attract customers. We have tried to present  all the valuable information at one place. Most of these tips can be tried by startups and cash strapped small businesses. You can learn digital marketing through Google itself. Pour some passion into it and see the magic.

7 years ago
The importance of knowing your customer
Mohab Customer Experience 0

The importance of knowing your customer

Whenever we are given a chance to describe our customer, the first thing we think of is demographic traits. 22 – 55, single, female living in a particular location. But is a statistical summation good enough to make business decisions? While this was true for the early days of eCommerce, things are different today.

Thanks to social networking sites, we are also privy to behavioral trails like their interests, hobbies and shopping patterns. That’s as far as the data available goes. But what about interpreting that data? How can we understand what is driving this person behind the computer to buy or not buy our products?

Several companies create an inside-out customer-first culture for their business. It’s a difficult trait but here are some points to help you get started:

  1. Map your customer’s journey

Your customer may visit your store and buy the product online or shop from your app. To do this, they may have either watched your TV commercial, heard about you on the radio, read about you in the papers or seen a social recommendation from a friend. In the era of omni-channel marketing, you’ll have to cross align channels with the phase your customer is in to see if each channel is working optimally.

The steps in the sales funnel for eCommerce include Discover, Explore, Gain Interest, Purchase intent, actual purchase and after sales support. When a customer reads about you on social media, they could be any one of the above phases. You’ll have to step back to see if your social messages are catering to customers in each segment equally.

  1. Listen to uncover insights

Survey tools have evolved over the years to go beyond the simple Google form. Instead, they now pop up at the right stage in a customer’s journey to gather valuable feedback. The only caveat is that you need to be able to ask the right questions.

If you ask your customer what they think of a new product line you’ve launched, you’ll probably get many answers that you want to hear depending on how you’ve framed the question. Instead, if you actually look for purchase patterns and interpret analytical data, you’ll get to know what your customers are actually doing. Listening to these patterns will allow you to tweak your product offering.

  1. Leave assumptions in the hallway

Even if your eCommerce business is successful, there is always room for improvement. There is always the issue of cart abandonment. You’ll still have to figure why only a fraction of your traffic goes on to become your customer and what happens to the rest.

The only real way to get your answers is to speak to the customer. You’ll have to zero in on a group, go in without fixed questions and let them do the talking while you walk away with insights that can be converted into action points.

  1. Go beyond heat maps

The analytics heat maps from your eCommerce website tends to show you a rough picture of where your customers are looking. But what does it tell you about their real time navigational choices? How are they examining products and charting their decision making journey. Which part of the cart is throwing people off? Are the taxes or shipping charges coming as a surprise? Are people unable to use their coupon code? Is your payment gateway (link) working as it promised?

To know answers to such questions observe how customers work in a focus group rather than just historic data.

Conclusion: After connecting data points with individual behaviour, the ongoing thing that you need to do is keep talking to your customers and check for feedback. The proactive approach to understanding your customer will be the difference between you and your nearest competitor.

7 years ago
Four Pillars of a Solid eCommerce Customer Experience
Mohab Customer Experience 0

Four Pillars of a Solid eCommerce Customer Experience

Is there a thing like loyalty when it comes to online shopping? In a world driven by discounts, sales, comparison shopping and endless scrolling, it is difficult to grab customer attention. The same sellers present their wares across multiple sites. So people move to check each site to see where the particular product is available at the best discount. In such a scenario, does customer experience really matter?

It matters more than you think. Imagine this – discount can’t be a competing factor because everyone is offering a lot of it. What matters then is customer experience. In fact, customer experience is considered to be a product in its own right.

In order to decipher what type of experience your customers are looking for, it is important to understand their journey and understand what they need at each touch point. Most companies try to concentrate on the customer life cycle which is a complex task, especially with omni-channel marketing. Instead, experts now suggest keeping focus on one customer journey at a time.

Here are the four pillars of a customer experience journey

  1. Make it simple to use

Buying from an eCommerce website should not feel like rocket science. You need to make it intuitive for customers to browse through your product range and get to a sale point. Most eCommerce shops follow a set pattern from discovery to the sales funnel to after sales service.

But a new app on the horizon – Elanic, is doing things differently. It has included an intuitive chat feature that allows buyers and sellers to interact before closing the sale. The chat is pre-programmed with common questions from the buyer like quality, size, condition of the product and more. This strategy is also followed by sites like OLX which sells seconds. In addition to the public comment feature, the site also allows customers to make an offer. The whole process is intuitive and automated which makes it easy to handle. Many sellers vouch that this feature has helped them close sales effectively.

  1. Make it personal

This strategy goes beyond knowing your customer’s name and saying ‘Hey xyz’ in your email. According to Campaign Monitor, 96% visitors to your website aren’t ready to buy. But they’ve shown some basic interest in what you have to offer and may probably come back if you communicate properly. Use retargeting to encourage users to pick up from where they left off. And don’t forget to inform them when the products they want are on sale.

  1. Stop them from abandoning cart

In 2016, as much as 69% of carts were abandoned! Can you imagine the billions lost because eCommerce portals did not work hard enough to push the sale? Constantly use A/B experiments to test what makes users stick or leave your website. In case they still abandon cart, make sure you send them a customized email reminder to pull them back

  1. Use the right payment gateway

Other than being secure, the right payment gateway will allow customers to pay in their own currency, using the wallet they prefer without making them work too hard. And of course, it should aid express checkout.

Conclusion: Don’t forget to constantly ask your customers for feedback and also incentivize them for providing it. There is no better way to enhance your customer experience than listening to them carefully – after all they are the heroes and champions for your brand.

7 years ago