How to Gain Regular Customers
Regardless whether they offer physical products, digital products or services, no company exists without customers.
The backbone of business growth and further development is made up of satisfied customers. Every brands’ goal should be to use customer retention to turn new customers into regular ones and to retain them. That is why customer relationship management (CRM) plays such a special role in corporate strategy.
Table of Contents
- How Customer Orientation Drives a Company Forward
- Where all Efforts Begin: Winning New Customers
- From New Customers to Regular Customers
- Maintain Relationships and Build Real Customer Retention
- Marketing Measures to Strengthen Customer Retention
- Holistic Measures for Successful Customer Relationships
- Results at a Glance: Measuring Customer Loyalty and Retention
- Turn Customers Into Regular Customers with Retention Marketing
- Prevent Customer Churn and Successfully Win Back Customers
Where all Efforts Begin: Winning New Customers
Attracting customers is the main goal of any and all marketing efforts. Once you know your target group, you can deduce from them where they are and which platforms, media, and channels they use. Through individual sales and marketing strategies, companies win new customers through a targeted approach that motivates them to buy. These can be advertisements, referral marketing, discount campaigns, events, or classic acquisitions. It is important to always keep an eye on the market and new customer acquisition activities to continuously advance.
It is possible to encourage new customers to make purchases without spending large amounts on advertising. In particular, this works in such a way that the product and its properties (USPs) are not the focus of the activities as usual, but an image or emotional benefit (UAP). The spirit which stands behind it could communicate that it makes life easier, meaning there is more time for other beautiful things like hobbies. Or the buyer is promised more success. Depending on the product and target group (B2C or B2B) emotional aspects play a greater or lesser role in the purchase decision. Companies should therefore deliberately emphasize this and use it to acquire new customers.
From New Customers to Regular Customers
Anyone who has already bought something from a shop more than once is considered a regular customer. The goal must be to turn existing buyers into regular customers, as caring for existing customers is known to be a lot cheaper than acquiring new customers. This should give it a firm place in corporate strategy. What is needed here are customer retention measures which strengthen customer loyalty.
The so-called impact chain of customer retention details the different phases that a customer goes through until they reliably and sustainably increase the company’s turnover. The chain consists of the following links:
1. First contact
2. Customer satisfaction
3. Customer loyalty
4. Customer retention
5. Economic success
The customer should be convinced of the company in each of these phases. For this, the company/customer relationship must be fostered.
Maintain Relationships and Build Real Customer Retention
Unlike customer loyalty, which emanates from the customer, companies can actively influence customer retention. These efforts have a direct impact on customer satisfaction. Goals and measures for customer retention can be derived from corporate strategy and should be seen as ongoing processes in customer relationship management (CRM). In addition to marketing, IT and the service department should also be involved. The customer must have a positive experience at every point of contact so that they buy again and develop a long-term relationship with the company. There are several different types of customer retention (check image).
Since the first three items listed are involuntary customer bindings, marketing and service should focus on the last two types of customer retention, which create customer loyalty. Economic ties are the goal of discount campaigns and loyalty programs, emotional ties are the goal of product, service, and image campaigns.
But be aware – customer retention is not the same as customer loyalty. While customer retention can be involuntary through the first three points mentioned above, customer loyalty is based entirely on positive experiences. The customer is loyal to the company or brand and plans further purchases in the future – or considers them possible and, given the circumstances, likely. Brand loyalty can also be supported by targeted marketing activities. A brand must be distinctive and easy to grasp, with its products having a rational or emotional benefit.
Depending on the business model, a bond based on monopoly or contractual obligations can also be part of the strategy. However, these types of attachment do not release you from the need for emotional attachment. When a contract expires or economic circumstances change, the question if you have managed to convince the customer of your company’s offerings in all the essential points suddenly becomes relevant.
Marketing Measures to Strengthen Customer Retention
Loyal customers are the best brand ambassadors. There are many ways to bind customers to the company, for example with one-time actions or customer loyalty programs. A bonus program based on a points system can even be set up, for example, if you do not yet know the customers well. However, getting to know each other is essential for individual approaches to customer retention. For this purpose, the buyers are divided into customer groups, for example with regard to certain properties or usage channels. The decisive factors here may include usage behavior, buying behavior, expectations, or demographic background. The following proven measures can be used as cornerstones for individual activities: