The sales funnel starts with getting leads and then driving them to a landing page. The landing page converts visitors into customers. Then, brands and businesses should nurture them to become advocates and loyal followers. According to a digital marketing speaker Hong Kong, the cost of getting a new customer is five times higher than retaining existing customers.
Even a social media agency Hong Kong agrees that the probability of selling to an existing customer is much higher than selling to a new one. There is only a 5% to 20% chance for a new customer to make a purchase. While there is around a 60% to 70% chance for an existing customer to buy offerings of brands that they have already experienced.
More than 65% of revenues come from the existing customer base of a brand or business. Loyal advocates spend 70% higher than the new recruits. Yet, for most brands and businesses, the average customer retention rate is only 20%. If you want to increase your profit through a loyal customer base, here are the 4 pillars of customer retention.
Audience Analytics means collecting data to get a deeper understanding of who your customers are and what they want. These include the characteristics of modern consumers, groups, and online users. They can be collected through advertising insights, demographics, device usage, social media activities, third-party data, and the use of media sources. Overall, they can help improve brand perception, customer experience, customer retention, and marketing strategies.
Interactive communication is another pillar of customer retention. It means nurturing your audiences and followers with relevant and valuable conversations. According to a video marketing agency Hong Kong, the simplest way is to upload different content formats on social media. Brands and businesses should focus on building long-term relationships by getting feedback and solving their problems.
More than 89% of modern consumers value customer experience as a pillar of customer retention. Brands and business should continuously delight their customers to turn them into brand advocates. Personalized experiences mean treating people as unique individuals. Take a customer-centric approach to make a brand or business stand out. These include:
- 24/7 chat, email, phone, or social media support
- Lots of choices between delivery methods, payment, products, and services.
- Periodic surveys
- Self-service interface
The last pillar of customer retention is user segmentation. Do not send ads and campaigns to everyone. People get annoyed receiving too many irrelevant ads and campaigns. It may only result in customers leaving brands and businesses. User segmentation means targeting relevant ads and campaigns based on the customers’ behavior, demographics, interests, location, etc., to get the best conversion results.
THE BOTTOM LINE
Brands and businesses lose $1.6 trillion of revenue every year as customers move away. By adhering to these 4 pillars of customer retention, we’re pretty that brands and businesses will get positive results in conversion and sales.