Are you on a mission to improve customer retention, but are not able to make progress because of a low budget? That’s not a problem when you are using the right strategies to increase the value proposition to your customer base.
Just a 5% increase in customer retention leads to an 29% increase in revenue, which showcases how important it is to keep onto your existing customers. In this article, we’ll share some practical tips for improving your customer retention on a low budget.
Email marketing is one of the highest ROI forms of advertising. Firstly, collecting customer emails is easy with call to action throughout your website, offering customer loyalty programs, or selling products. In fact, it’s standard practice for customers to share their email when buying products online.
Once you’ve acquired the email address, you can send repeat messages to keep them interested. This can be through a combination of targeted offers and educational content.
Email marketing is inexpensive because all you need to write, copy and send messages to hundreds or thousands of prospects via the click of a button. In practice, it’s a bit more complicated than that, but it’s inexpensive
However, you may want to invest in customer relationship management software to improve the quality of your email marketing campaign. That’s because CRM software allows you to develop in-depth customer profiles, which improves the quality of the targeted offers.
Loyalty programs are an excellent strategy for increasing the number of repeat purchases from customers. However, the program must be good enough for interested clients to stick around and avoid being lured away by competitors. Here are some tips for improving your loyalty program:
- Low barrier to entry: the loyalty program should be free, and rewards must be offered without requiring a huge spending of money. Otherwise, customers will get put off by how much investment is required to receive rewards.
- Easy to understand: you should be able to tell another person how the loyalty program works within a couple of sentences. Easy to understand programs have a higher chance of ensuring retention isn’t a problem.
- Reward points: most loyalty programs work on a rewards points system. This allows customers to accumulate points and spend them on free samples, products, and discounts.
- Competitor programs: you should consider checking out your competitors’ loyalty programs to see what approach they have taken. This will give you ideas for how to set up a program that is niche specific and matches your customer’s expectations.
- High-ROI items: the products you should give away through the loyalty program must be high-ROI. That’s because you can afford to provide discounts and promotions on these products and still profit.
Customers love to buy from a brand that they can get behind emotionally. Therefore, you must create a brand image that’s impactful, easy to understand and consistent. Your branding should be consistent across all marketing material. This ensures customers interacting through various marketing channels get the same experience.
Branding includes various elements such as typography, colors, tone, images, and much more. You should create a brand template that is used on all parts of your website and assets across the internet.
One of the biggest reasons why customers move to other platforms is because of poor customer support. Visit social media portals and review websites like Trustpilot to see the kind of complaints people leave – in many cases it’s the lack of support.
Therefore, improving customer support leads to better customer retention rates, and here are some tips:
- Quick response time: make sure that the speed of the response is fast, so that customers are not waiting around for a long time. If customers don’t get a reply soon, they might leave to your competitors.
- Multiple contact methods: it’s vital that customers can contact support through the format they find most convenient. Ideally, this should include live chat, phone, and email. Also, live chat can be integrated with a chatbot, which allows customers to receive instant answers.
- Expertise: ideally, your customer support staff should be knowledgeable about the products and services they are providing support for. This ensures they can answer questions and leave customers satisfied after the interaction.
Send Discounts After Purchases
You should send discounts and promotions after the client completes a purchase. This could be 10% from the next order, 20% off from selected products, or anything else that offers value. Providing offers and discounts means the lead is more likely to buy in the future.
Once a buyer gets into the habit of visiting your store, it can become a lifelong habit that leads to many repeat sales. Therefore, the lifetime value of that customer might be extremely high.
You can fine-tune the quality of your discount offers by using CRM software. This allows you to understand the amount of money you generate from each lead. Also, you can determine the conversion rate of your offers.
Provide Educational Content
Your website could be a treasure trove of niche specific information that users keep coming back for. Therefore, create a blog and regularly release updates so that users can return to your website to learn more.
The type of content you can release includes industry-related news, information about your products, and step-by-step instructions on how to use your products. Also, you could release videos via social media websites to show tutorials or even host a podcast.
There are many methods to improve your customer retention on a low budget. You can take your pick from this article or try them all to skyrocket your sales from existing customers.
The cost of acquiring new customers is significantly more expensive than holding onto existing ones. Therefore, businesses on a low budget should consider taking advantage of these strategies to grow on a low budget.