5 Ways Your Business Can Increase Customer Retention
When it comes to customer retention, the answer is rather simple: customers who are satisfied with your business are easier to retain. However, the average business loses around 20 percent of its customers annually simply by failing to attend to existing customer relationships. In some industries this leakage is as high as 80 percent! And yet, only 32 percent of executives say retaining existing customers is a priority (Forbes).
We’re here to help fix the problem.
It is important to always try to look for new and unique ways to form a bond/partnership with your customers. 80% of ‘switchers’ feel the company could have done something to retain them (Accenture). Here are five ways to improve the customer’s experience
1. Loyalty & Rewards Programs
A great way to increase customer loyalty is by rewarding customers for preferred purchases and behaviours. Loyalty programs are great because they help create an ongoing relationship with your customers, and you can influence and motivate them to make decisions that best fit with your goals.
Some of the best loyalty programs are those that incorporate reloadable rewards, such as prepaid cards. The cards are great for a wide variety of programs, such as rebates, contests, prizes, referrals, etc., making them an all-in-one loyalty device. The cards conveniently store all of the funds in one place, and payouts can be made instantly.
Another key benefit is that these kinds of loyalty and reward programs also allow your company to track your clients’ general purchasing habits. With loyalty and track-ability comes data. Data is key to personalization of products, services, and offerings that are tailored for your customer base. Customize your campaigns based on past interactions with your customers for best results. With ongoing rewards and payments via their reloadable cards, customer interaction increases, making the cards a great marketing tool.
A contemporary and streamlined rewards program will help you differentiate yourself from your competition and ensure that you are building strong relationships with your customers.
47% of customers would take their business to a competitor within a day of experiencing poor customer service (24/7). The estimated cost of customers switching due to poor service is $1.6 trillion (Accenture). Pretty shocking numbers, right?
That’s why it is extremely important that your business provides its customers with an excellent customer service experience. Many businesses spend a huge amount of time, effort, and money trying to build an initial customer relationship, but lose interest once a sale has been made. If you’re not maintaining a connection with your current customer base, it’s easy for your customers to feel unappreciated and choose to move to a competitor.
Reach out to your customers to ensure that you are meeting their wants and needs. Ask your customers questions via social media, email surveys, or in-app questionnaires to find out what they value the most. Pay attention to social media and review sites to see how people really feel about your company. Make it easy for your customers to contact you, and make sure there are several different ways to get in touch with your company, such as email, phone, social media, etc. Barriers to communication with your brand will create a loss of trust and diminish your customers’ loyalty to your brand.
By paying attention to their individual needs, showing they are valued, and showing that the brand cares about them, your customer service team will make the relationship with your brand feel personal. Word-of-mouth is the most cost-effective form of advertising that you can have, and it only comes from your loyal, happy customers.
Knowing your customers is an important factor in retaining them. A strong loyalty program (see #1), along with data collection that will allow you to optimize offers to best suit your customers’ needs, help make the customer feel that your business cares about them as individuals. This is something that other businesses, who don’t know these customers, are not able to do. 56% of consumers said receiving a personalized incentive would improve consideration of the brand (Virtual Incentives).
Offering a personalized loyalty program card is a great way to increase visibility, word-of-mouth-advertising, and retention. Every time someone uses your card to make a purchase or redeem rewards, both the consumer and the vendor will be made aware of your company.
49% of consumers will gladly switch brands for a coupon, and 60% of mobile coupon users say they will gladly switch brands to use a coupon (GfK). Discounting and coupon systems are easy to implement, and can lead to an increase in customer satisfaction and loyalty.
Replace your old-school gift coupon program with a multifaceted prepaid program and offer something fresh and exciting to your customers. Prepaid cards replace cumbersome coupons and offer more security, accountability, and manageability. Offer a closed loop/semi-closed loop card and ensure that users can only use the card with selected vendors, still offering choice, while driving sales traffic back to your company.
5. Happy & Hard-working Employees
If your employees are happy working for your company it will show. As the direct liaison between you and your customers, employees are ambassadors for your company, so make sure you engage and motivate your employees. One of our upcoming blog posts will focus on ways to increase employee retention, so stay tuned. In the meantime check out How Employee Engagement Can Build Customer Loyalty.
Have questions or looking to learn more about prepaid cards?
Feel free to contact us by visiting our contact page. DCR offers years of experience and expertise in prepaid card program—from the launching stage all the way through fulfillment and program management.