How to Boost Profits by Increasing Customer Retention Rates
You might be focusing on the wrong areas if you have a low conversion rate. Increasing the number of sales will boost your market value. Don’t focus on only one thing when it comes to conversions. Dedicate your time, effort, and money to magnify your profits and sales. Work on customer retention if you need to grow and prosper. Experts at a leading search engine marketing agency share a few strategies you can follow to increase your customer retention rates.
Why Customer Retention Matters for Profit?
It is crucial to understand the reason behind customer retention. It can impact your brand or company. Customer retention means the number of customers that stays with you on a long-term basis. Your company will progress as long as the customers buy from you. Focus more on your loyal customers instead on a one-time buyer. You need to spend a lot to get new customers so keep the regular ones happy with your services.
1. Build Your Brand
Many people remain loyal to big brands like Apple or Samsung. The main reason these giants spend a lot of money rather than small businesses. Studies show that larger companies remain satisfied with their marketing campaigns. Giant brands focus on brand loyalty and recognition. They work on building a mentality that encourages customers to stay with them.
2. Have a Cause to Support
The biggest companies have used messaging campaigns in the past few decades. More than 70% of users support a brand who has a voice for a social cause. This means going after a specific cause is great to keep the customers hanging onto you. Incorporate a big idea into your brand instead of looking for a one-time campaign.
3. Use Social Proof
Show your customers that you have tons of followers to keep the retention rate high. Make your customers happy when they buy your products or services. This may help encourage existing customers to keep buying from you. The best way to do this is to put extra effort in using social proof to develop your brand name. Using testimonials on your website can increase conversions. Don’t compromise on trust issues. Discuss the dedication of your loyal customers as a form of social proof.
4. Resemble Your Customers
Understand the psychology of your customers. You need to become a part of their life to keep a high retention rate. Figure out the things that attract your customers the most. Harley-Davidson has made a noble brand by using catch phrases and selective images. For instance, they use phrases like a brass knuckle or Fat Bob to connect with their target customers.
5. Create a “Before and After” Scenario
Marketers understand that to get new customers, they need to impress them. Don’t forget that the buying cycle continues for a big brand. Offering a solution is not enough for a customer to keep buying from you. You need to influence customers that investing in your product is better than a one-time buy. Use a “before and after” scenario like the fitness companies to keep a high retention rate.