University:
California State University, Los Angeles
Course:
BUS 5026 | Global Business Environment
Academic year:

2024
Views:

315

Pages:

2
Author:

Amel S.

SIX CUSTOMER RETENTION STRATEGIES WHICH CAN BE USED IN BUSINESS A. Introduction Customer retention is a variety of actions taken by companies to retain customers to continue using their products or services. The surprising thing is, not all businesses prioritize customer retention. Based on data from Forbes, in 2012 many businesses prioritized driving sales, while customer loyalty was the last priority. Retaining customers is one of the most important things in running a business. Therefore, you must know the best customer retention strategy that can be implemented. For those who don't know, customer retention is an effort to retain customers who have already purchased your product so that they continue to make transactions. According to CrazyEgg, this effort is carried out so that the company makes a profit and does not need to spend more money to get new customers. B. List of Customer Retention Strategies 1. Create a referral program The first strategy to increase customer retention is to create a referral program. This program will be very beneficial for both parties. An example of its application is when they buy something and give a referral code to a friend who will also make a transaction, each party will get a promo. For example, the person who gives the code gets a gift card that can be used to buy something, then the party who uses the code will get a discount on their first purchase. You can retain old customers, get new customers, then people who make transactions also get rewards and will be motivated to shop again. 2. Start the subscription program You can also start a subscription program containing exclusive content for existing customers. No need to spend money like the previous strategy, this program can still increase customer retention rate and also sales growth. When you want to create a subscription program, make sure you and your team do research on what customers really want. That way, the content provided will also be appropriate and targeted appropriately. 3. Pay attention to the differences between the brand and competitors The next strategy to increase customer retention is to emphasize the differences between your brand and competitors. In this advertisement, the PC is portrayed as stiff and incompetent. On the other hand, the cast of Mac has a cool and reliable personality. They even chat about why Macs are a better choice compared to PCs. This advertisement creates a clear barrier between Apple and its competitors, by showing the image of customers who buy this brand's products. 4. Make sure the service is on the right platform Another strategy that can help increase the customer retention rate is to provide services on the right platform. One of the things that shows that your brand understands customers is by knowing where they spend the most time. That way, if at any time there is a problem, you can provide notifications and services to customers on the platform. 5. Focus on personalization As a customer, surely you don't really like automated messages that seem stiff and make you feel like you're talking to a robot, right? Therefore, to increase customer retention, you can use personalization strategies. Suppose you decide to serve customers via Twitter. Every mention and DM that comes in, try to reply according to individual problems. Don't let replies from your brand use templates and seem like a computer.