5 buyer loyalty practices that can work in 2021
No wonder that customer loyalty is a priority business goal, especially since acquiring new customers is five times more expensive than retaining an existing customer.
However, the pandemic is having a significant impact on customer churn. The churn rate of our marketing software, a SaaS platform, increased by 25% between March and June 2020. Reach was measured in small and medium-sized enterprises (SMEs) in the travel, events and entertainment industries.
We have also heard calls for help from medium-sized companies with lost customers. We launched an awareness campaign with live videos and step-by-step instructions to directly help SMEs with online customer acquisition. With the insights from this campaign, we were able to develop convincing strategies for customer loyalty. Investing in customer loyalty is not only far more cost-effective than trying to win new customers. But the assessment of the question “Why my customers should come back” helps to win old and new customers and has a lasting effect on success and sustainability.
Let’s get started right away, which strategies will help reduce churn and increase customer engagement.
- Get a return visit to your customers through personalization
So far, 2021 has been the year of personalization. Companies of all industries and sizes have started investing in AI-powered engines that send tailored messages to their site visitors. At the same time, companies allow their customers to tailor their products and services to their individual preferences, Netflix has set a good example. As a result, customers are now demanding these shopping experiences across all industries. Studies show that 80% of customers are more likely to buy a product or service from a brand that offers them a personalized experience.
One of the most effective customer loyalty strategies is to send them personalized messages through your communication channels, mostly email. Using the data and information you have about your customers, you can send targeted messages to your subscribers. Let’s look at an example: Data from a home decor retailer shows that a customer bought a tableware set a month ago. The dealer can now send a message to the newly available plate coasters that match the design of the silver. This will drive customers to buy a second time.
- Offer discounts and frozen accounts
Can you customize your service and product offerings? For example, consider providing a more personalized experience in the context of Covid-19. CNBC reported that at the height of the pandemic, around 23% of small businesses were temporarily closed or ceased due to Covid-19. The decreased international demand has affected both B2B relationships and B2C sales worldwide. As we face more challenges through 2021, companies and individuals will be more cautious going forward.
When companies show empathy and flexibility in difficult circumstances, it leads to meaningful connections and encourages customer loyalty. Show your flexibility with monthly discounts for long-term subscribers or offer to freeze customer accounts and give them the option to resume their contracts after a few months.
We have allowed our customers in our marketing software company to keep their historical data, leads, statistics and campaign assets without paying for the product. Thanks to this freeze program, many could get through the unprecedented times and reorganize and rethink their business model. In addition, with a helping hand, companies can prove that they are adaptable and resilient in the face of a crisis.
- Live customer service communication
Delivering memorable customer service experiences increases customer value and the opportunity for customers to return to your company. After the pandemic forced us to minimize human contact for months, it turns out that we are looking for a human face in online and digital services. This human face relates to the respectful, flexible and empathic approach to customers when dealing with you.
One way businesses can improve their human touch and increase customer satisfaction is through live chats. Interactive web chats offer a personalized, time-saving and seamless communication experience between your company and your customers. This ultimately leads to higher retention rates. Everything indicates that 51% of consumers are more likely to stay loyal to a company that offers human chat support.
Live chats can be easily integrated into your website and applications. Start by analyzing your customer service needs, such as B. Times with heavy traffic and typical customer service inquiries (e.g. shipping or complicated matters like product support?). In the second step, you can set up your live chat accordingly by offering a live chat window during peak hours and a “callback” function outside of business hours.
- Invest in live video, webinars, and educational content
Over the past year, the e-learning market has grown exponentially and is expected to grow by over $ 72 billion from 2020 to 2024. Webinars, live videos, and free educational content have become the primary source of education.
As a SaaS company, we have seen the need for educational content and online training increase enormously in 2020. Many companies had no knowledge of conducting online marketing efforts and were struggling to get their remote work business online quickly.
After offering all current customers and prospects a one-hour free online consultation in 2020 to better understand our platform, we concluded that investing in training materials is effective in reducing customer churn. As many companies move into global markets to diversify their customer base, translating educational content into different languages can add to the overall value.
Setting up a content blog on your website is a good start that will require a small investment. If you can allocate more resources, produce videos with how-to, tips, and advice. Educational content has a positive impact on trust and brand affinity, so it’s well worth investing time and effort. Informative and engaging resources that show the daily value of a product or service improve accessibility and turn the number of visitors into leads.
- Simplify your customer experience
Steve Jobs repeatedly said that Apple’s mantra would be simplicity and urged its employees to make the machines “look friendly”. He emphasized that products must be intuitive and easy to use.
Keep in mind that existing products or services may need to be tweaked or new ones added to improve the usability and help existing customers better understand the products available. Gather customer feedback to refine offerings and repackage existing products or services to meet customer needs. We conducted a survey that found that SMBs had particular difficulty managing Google Ads. So we’ve added a simple in-house product to our platform to seamlessly manage and create ads from one interface. Without doing expensive and time-consuming market research, SMEs can learn from customer feedback through surveys and other communication channels.
Finally, optimize your website for voice search. Voice search is a super hot SEO topic as it is predicted that 55% of households will own a smart speaker by 2022, and that’s only in the US. Content would also become more accessible to the 2.2 billion people with visual impairments. Businesses need to focus more on long-tail keywords in their content because people don’t use the same keywords when they speak as they do when they type. Also, consider adding voice-over to blogs and long-form content in different languages.
A 5% increase in customer loyalty can increase profits by 25 to 95%, which companies need to take advantage of. Customer satisfaction should come first and can be achieved by leading with flexibility and convenience, rewarding loyalty, and engaging with and responding to feedback. A customer-centric culture enables companies to rely on their loyal customers even when the market fluctuates.
Written by Aleksandra (Siciarz) Korczynska.
Follow the latest news live on CEOWORLD magazine and get the latest news from the US and around the world. The views expressed are those of the author and not necessarily those of the CEOWORLD magazine. Follow the CEOWORLD magazine on Twitter and Facebook. For media inquiries, please contact: [email protected]