5 Customer Retention Strategies That Don't Break the Bank

If your customer retention rate is low, then bringing it up should be your number one priority. Your business can only survive for so long by attracting first-time customers and letting them go afterwards. 

Here are some strategies to help you increase your customer retention rate: 

Find out why they're leaving 

The first step is always to find the source of the problem. If you can figure out why customers are leaving in the first place, then the rest of your job will be much easier. 

To do this, you can send surveys to past customers, read your reviews, and see if your business was mentioned in any blogs. There might be a really obvious reason why customers aren't coming back that you just aren't seeing. 

Prioritize your market segment over random customers

This strategy calls back to your lead generation campaign. In the business world, it's hard to say "no" to a customer, and while you shouldn't necessarily do that, you should definitely focus more on those in your market segment. 

If someone outside your market segment is interested in your products, the right answer isn't always to nurture the lead. These prospects sometimes cost more money than they're worth and are less likely to return. 

According to this recent Inc article, you should concentrate more on the customers you identified in your market segment: 

"The right customer is one you are prepared to serve -- in every sense. It is the one you are targeting -- not the customer who is targeting you. It means distinguishing capability from strategy. Capability is what you can do; strategy is about what makes sense for you to do."

These customers will find more utility in your products and services. They're more likely to return because you designed the customer journey explicitly for them. 

We're not telling you to turn down someone's business, but you should note that some leads are more valuable than others. 

Make payment an easy process

Here's a good one. Some people never return to a business because the payment process is too complicated. 

Imagine that. You've done everything right from your product development to your lead nurturing strategy. Yet something as simple as your site navigation is holding customers back. 

Try to minimize the number of links users have to click and the number of forms they have to fill in. Make payment as easy as picking a few options on a page and confirming the order. 

Add new products and services

This strategy is more involved, but will raise your retention rate to elite levels if it's already high. If customers are satisfied with your products and services but don't need refill orders, then you should add new ones to your lineup. 

They don't have to be big or intricate. They can just be accessories that enhance the customer experience. A good example is Apple and their wide array of accessories for their main products (laptops, phones, etc.). 

Stay organized 

Some businesses have a hard time retaining customers because they can't keep track of them. This is common for growing businesses that don't have the technology to organize their leads and customers. 

A simple solution here is to get customer relationship management software. CRM software is simple to use, so virtually all of your employees can have access to it. 

The software stores all information regarding customers from their email preferences to their order history. This makes it easier for you to know who you're dealing with and make a personalized offer to a returning customer. 

Email Marketing Campaign is Like Preparing for a Marathon

What's the most important thing when it comes to running a marathon? Maybe it's because we're marketers, but we'd say having a plan to guide your training and executing it would be #1 on the list. 

Visualizing Success

Whether you're planning on running a marathon or starting an email marketing campaign, it's normal for people to first think of the end results. Even though these come way later, visualizing the benefits is what draws us in in the first place. 

With proper planning, email marketing can be incredibly effective. This Business 2 Community article gives some insight into its potential ROI: 

"Reports have suggested that email marketing can yield as much as 3,800% ROI (Return-On-Investment) for businesses. This is not a figure to ignore, but it does allow us to answer the question of ‘why is it so effective’? Enewsletters are highly personalized and are supplying the customer with relevant information. If the customer has been thinking about buying and the email comes at the perfect time, they are more likely to make a purchase."

This assumes, however, that you have a good plan in place. 

What happens when you don't have a plan

Take a random guy with a slightly inflated ego off the street and tell him to run a marathon. Most likely, he'll try to keep up with more advanced runners and burn out well before he could have lasted had he run a slower place. 

Likewise, if you don't have a solid email marketing strategy, you'll never cover any ground. You'll just spin your wheels, never really engaging subscribers or converting leads. 

Planning your strategy

Coming up with a good strategy is half the battle. You have to understand your business, your target audience, and the platform, just like runners have to understand their bodies, their current fitness level, and the conditions in which they'll be running in. 

Testing your plan

After designing your strategy, the next most important step is to test it.  In the case of the marathon runner, this is when he would slowly build up his times by doing 5Ks, 10Ks, and then eventually half marathons. 

In the context of email marketing, there are a million things to test. This Marketing Land article, for example, says that the average read time is 11 seconds, so you should optimize your emails according to the fact:  

"Don’t overload your emails with endless walls of text. Given the average read time for an email is 11 seconds, you’ll lose your reader if you overload them with copy. Instead, create short, concise emails that whet the appetite of the reader and focus on one topic. Include all the details on the landing page that the reader will see after they click."

In your testing, you have to see how long it takes for people to scan your message. If it's over 11 seconds, then you need to condense your email. Otherwise, most users will just click away. 

Putting your plan into practice

Eventually, the time comes to either run the race or start your email campaign. Although some would think this is the hardest step, it's actually the easiest. You already have a bona fide strategy thanks to your planning and testing. Now you just have to put it into practice.

The aftermath

The aftermath takes us right back to where we got started. Except now you're not visualizing any success, now you're crossing the line and soaking the moment in. 

Everything is easier once you have a good email marketing campaign. Converting leads, increasing revenue, and advancing consumers through the buying process are all covered by your campaign. And just like preparing for a marathon is easier the second time around since you understand the process, running a second email campaign is a breeze.