There is no doubt that managing retention is the most critical aspect of a sustainable business. In many cases, customer retention is more important than customer acquisition. We have been harping that it is six to seven times more expensive to get a new customer than to retain your current ones since Day 1. And that is why as a business owner, you learn how to create an appreciative customer fan base, where they talk about your products and services for free and are so satisfied with your products that they keep coming back.
We are going to share five strategies that have worked wonders for our clients and the reasons why you should include them in your next strategy meeting.
What is your current churn rate?
Before you dive into a strategy for customer retention, you need to figure out what your current retention rate is. Monitoring retention metrics is essential for a company to learn lifetime customer value and to quantify the effectiveness of its marketing strategy and customer service program.
Customer churn rate formula: (Churned customers / Original number of customers) x 100
What is Customer Churn?
Customer churn refers to the percentage of customers who unsubscribe or uninstall your product or service during a set period. You can get the accurate numbers by dividing the number of customers you lost in a quarter by the number of customers you started that quarter with.
Addressing Customer Churn and Why it’s Crucial
Acquiring a new user costs five times more than retaining a customer. Nurturing new users to the same level takes time. It’s easier to get revenue from an existing customer than acquiring a new user.
Although it’s evident that retaining customers is more important because customers will remain customers as long as they see the value.
Strategies to reduce churn and improve retention.
1. Discover why customers are leaving.
You can start by figuring out why your users are unhappy. Examine the data, observe the session time, feature usage, and screen views to understand where the users are dropping off. You can do this by effectively using Upshot.ai’s robust app engagement and analytics tool.
Interacting with the customers will do miracles in analyzing churn. Leverage omnichannel engagement to take helpful feedback, recognize their pain points, and make corrections to prevent it in the future.
2. Engage with your users effectively.
Actively engaging with your users will make the users come back to the app on a day-to-day basis, making your products, services, offers, etc., a part of their daily workflow.
Use all the channels effectively to engage your customer throughout the customer lifecycle with the right content at the right time.
3. Nurture your customers
Not having sufficient information about your service will make users forget your business. Effective user onboarding methods play a significant role in providing first-hand knowledge about the product/service. Take advantage of video tutorials, webinars, free email courses, and product demos to make your users feel comfortable and educated.
Be responsive to their demands and proactive in delivering ideas. Engaging with customer feedback is an effective solution to customer retention for any business.
4. Create peaks in the customer experience
To create a stellar user experience, consider the entire user journey, understand the end-to-end experiences with customers, and how interactions happen at each stage. It will give you enough insight to fine-tune your product to deliver an excellent user experience.
Discover milestones in the customer relationship and find ways to reward customers when they least expect it. For example, assume your customer orders shoes for the third time in a row, and like a week later, they get a pair of socks that match with a note appreciating them for their continued trust.
These unexpected examples of appreciation go a long way (especially in the social sharing world) to improve customer experience and retain them for a longer time.
5. Formulate your customer loyalty programs the right way
Customer loyalty programs are proved to have a significant impact on retention. The loyal users are more likely to repurchase, seek new offerings, and show interest in referring other users.
Loyalty programs will retain users for a long time, provide higher LTV, and require less work to convert. Luckily, we have customer loyalty programs that you can use to set your program up correctly from the start.
6. Outline your most valuable customers
It is essential to create segments for your most valuable users based on the parameters you apply. Once you have your potential details based on profitability, proactively reach out to ensure that these customers are satisfied. You can do this with either an engagement tool or customer success teams.
Some businesses run “surprise and delight” campaigns to offer incentives, discounts, perks, or additional services to create goodwill.
About Upshot.ai :
Upshot.ai is an omnichannel, user engagement, and gamification platform that helps digital product owners and marketers improve their product adoption and conversions. Fortune 1000 companies such as GE, UHG, Puma, Sony, ITC, Tenet healthcare are using Upshot.ai and observed a massive increase in product adoption YoY increment in revenues.
Book a demo of the most comprehensive user engagement and gamification platform to achieve your digital product goals. Join our communities for more insights, guides, and best practices that keep you updated with proven strategies and tips to supercharge your campaigns.Follow @upshot_ai