Customer Retention - The ability of a company to retain its customers over a period of time.
Now... What does one do with all these customers they've obtained? If you haven't: Read this on how to get more customers. There's a million and one ways to bring in new customers, but did you know that attracting new customers is 7x more expensive than it is to retain customers?
Unless your business has money to burn, focusing purely on attracting new customers is simply not feasible for the long run!
Enter Customer Retention - The ability of a company to retain its customers over a period of time. It is measured by how many customers a company keeps at the end of a set time period, and the number impacted by the number of new customers acquired and the number of customers who churn. (Hubspot)
Why do I need Customer Retention?
Simple. Do you want your business to survive long-term? If the answer is "yes", then you definitely need to consider customer retention. After all, no customers = no business!
Remember, attracting new customers is 7x more expensive than retaining customers!
Why go to all these lengths to attain new customers (and it's not even guaranteed)? Trying to convince them your product is better than your competitors... Why not focus on those who've already tried your product? (i.e. your current customers)
After all, it is 60-70% easier to sell to existing customers, than new customers!
The Common Denominator
As a business-owner yourself, you would know the importance of good planning in order for ideas and plans to be successful. We've all heard horror stories where customer service is terrible... Or even products that are not up to standard.
Well... with such bad reputation floating around the Internet, it will definitely be harder for such businesses to have a high customer retention rate.
So, the common denominator for a high Customer Retention rate: Great Product and Good Customer Service.
It's really simple, just put yourself in the shoes of a paying customer! What would make you patronise a business again?
The logical choice would be to engage a CRM business so you'll be able to effectively manage your customers better and keep them coming back again & again!
What sets Advocado apart from the others is the simplicity & ease of use. At a price of only $5 a day, you'll be hard-pressed to find something better than us.
Why Advocado? Advocado offers a suite of features catered for businesses, big or small, to keep track of their customers, and subsequently turn them to recurring customers. Marketing to customers in your database is made effortless with features like SMS Broadcast.
How to get customers coming back
With several loyalty campaigns available, here's a few that does the job of retaining all your customers:
- Loyalty Points
- Prepaid Items
1. Loyalty Points
Everybody knows about points, it's been around since forever! Loyalty points reward frequent customers which means they'll just keep coming back again & again.
2. Prepaid Items
What better way to keep your customers hooked, than to offer value-bundles of your products that they absolutely love and can track? E.g. 10 Coffees at the price of $40 (Save $15)!
Cashback occurs when a percentage of the amount spent is paid back to the customer. The customer can then use the cashback on future purchases! Everybody likes discounts, especially when it's on their favourite food/product!
Lastly, membership! The best thing about Advocado? Advocado's various campaigns can be tied to a membership! E.g. Basic members - 5% cashback, VIP members - 15% cashback. And it's all customisable! All up to you.
To end things off, here's another infographic for you to read through - Why you should pay attention to Customer Retention.