Keys to customer retention

Digital transformation affects businesses globally, pushing them to adapt to new conditions as their customer behavior fundamentally changes.

Uncertainty due to economic or health crises, changes in ways of working, employment, welfare, values, etc. encourage customers to rethink how to buy, what to buy and from whom.

Customers prefer businesses that offer digital platforms that handle sales, delivery, loyalty, offers, and customer service.

Customers are no longer attracted by the promotion, but by the connection.

Since promotions have become a less effective strategy for attracting new customers, the key is to reconnect with customers who have made a purchase and encourage business with them.

A relevant change derived from the digital increase is the Importance of data and correct use of them to reconnect with them in a personalized way and adding value.

These changes conclude that an omnichannel presence is not enough. You need a platform that allows you to take advantage of data to stay connected with your customers, keep them loyal thanks to the contribution of value and interact with them both online or in person in a homogeneous way.

You need a retention platform that is capable of managing sales, delivery, customer service, and personalized communication, globally. This retention platform will ensure the sustainability of companies by keeping and converting their valued customers.

• Customer retention is 5 times cheaper than customer acquisition.
• The probability of selling to an existing customer is 60% / 70%. The probability that a new customer will buy is 5-20%.
• 80% of profits come from just 20% of existing customers.

This means that the sources of income that the company has been looking for are already available, waiting to be found and cultivated.

Tools for customer retention

1.- Loyalty Programs

Encourage customers to upsell and return frequently through:

• Earning points / coupons
• Membership Grades
• Additional benefits for specific items

A loyalty program secures the customer in times of crisis. On the other hand, loyal customers are more likely to generate additional sales through referrals in their relationship circles.

2.- Subscription Economy

Convert customers into subscribers who agree to regularly pay in advance to receive benefits, such as free products, unlimited free shipping, or regular discounts, for a period of time set by them.

This allows companies to:

• Initial Cash Flow
• predictable income
• Secure client portfolio
• Increase subscription offer

See details in the monograph: Subscription Economy

3.- Affiliate to social commerce

Program to recruit resellers through an application or a website. Resellers act as the digital arm of a business to promote and sell products and services and recruit new resellers for profit.

An affiliate program must be

• Simple to use and clear
• Attractive as people earn extra income
• Allows marketing products / services in new channels or markets
• It is nourished by trust and information in social networks for decision making

Are there any examples of these practices that you want to share?