We may not want it to be true, but despite all our best efforts, it happens: Customers leave. It’s a part of business and is often something we can’t predict or avoid. With the average customer retention rate being below 20%, it’s becoming harder than ever for businesses to keep customers. But if you can, the work is worth it. After all, it’s 5 to 25 times more expensive to acquire a new customer than to retain one. To help you maintain your existing customers and convince those that have left to return, let’s break it down, looking at common reasons why consumers leave and how to solve for that problem.
- Brand Relevance: Though sometimes the reason a brand becomes irrelevant to a customer is out of our control (for example, aging or death), other times the problem just boils down to content, and the owner just needs to refresh it. If you collect customer preferences up front (and ask them to update their preferences on occasion), it can help you in evaluating your situation and assist you in product/services development, maintaining brand relevance for your clients.
- Customer Connection: Sometimes people don’t feel connected and heard by a company—and having a conversation can help that. More and more, making the customer feel like they are talking to a human and having a two-way conversation can make all the difference.
- Personalization: When content doesn’t feel personalized and talks about uninteresting topics to the consumer, customers walk. So, adjust your strategy: get personal and adjust your content to reflect recommendations based on their previous purchase history.
- Incomplete Purchase: Sometimes, a customer will go through the process of purchasing an item, but then doesn’t complete it due to outside circumstances (they get distracted, have to run out… things happen). Send a follow up email, to reach out and tempt them back. Consider even offering a discount to help them complete the sale.
- The Pressure of the Hard Sell: Sometimes shoppers don’t want to be told what to do or pressured into a purchase. Using a gentler approach, trying to help them, entertain them or just provide general useful information is a softer way to keep the conversation going with a customer.
- Forgotten: Sometimes a customer can just forget about you. Sending timely reminders, especially if an item they previously searched is now on-sale, can help keep you fresh in their mind.
- Unappreciated: Often a customer will feel unappreciated and that they are just another number when they continually get generic messages and emails. To make them feel special, reward those loyal customers with a discount or special offer, and circle back to personalization, trying to provide more targeted content.
- Too Much: On the other hand, it’s important to not overdo it and bombard consumers with constant emails. By letting your customers adjust the frequency they receive your emails, you can build trust with your customers.
Despite your best efforts, sometimes a business will lose clients, but it’s important to not let them get away before learning from the experience to avoid history repeating itself. Direct Opinions can take your efforts further, helping you gather insight from your lost customers. We can also provide assistance if you have experienced a drop in revenue or customer retention in determining why, so contact us!