One of the easiest ways to increase customer retention is through your social media channels.
According to Bain & Company's research, increasing your customer retention by 5% can boost your profit up to 95%.
This explains why you should understand the importance of keeping your local customers.
Keeping your customers loyal to your business allows you to maximize your marketing budget. Plus, they are most likely to repurchase your products that move on to other brands unless you are giving them a reason to switch.
But what is customer retention - and why does your business need it?
What is Customer Retention?
Neil Patel defines customer retention as the process of "engaging existing customers to continue buying products or services from your business."
Because it is a process, it means it is a culmination of various marketing activities. This includes attracting a prospect, turning them into customers, and keeping them loyal to your brand.
The end goal here is to transform your first-time buyers into repeat customers and enhance their lifetime value.
Why is Customer Retention Crucial?
At Voy Media Marketing Agency NYC, we always tell our clients how more than 50% of their business comes from loyal customers.
Imagine not having to worry about where half of your sales will come from, right?
But what you need, though, is a robust customer retention plan. This includes any marketing channels that can help drive loyalty, like social media.
Social media can be a great vehicle to drive customer loyalty and retention. Plus, it is a low-cost strategy to retain existing customers.
Using Social Media to Drive Customer Retention
Customer retention is all about building the right relationships with people. And what better way to do that than to use social media?
Here are seven ways to do drive customer retention through the use of social media:
1. Embrace Your Brand Advocates
If your loyal customers go out of their way to recommend your products or services to others, then it would make sense to reciprocate it. Let them know that you appreciate it.
If you spot one of your customers recommending your business on social media, then send them your heartfelt thanks. You can do this by replying to them in the comments or sending them a DM.
This shows that you're paying attention and that their testimony somehow matters to you.
Another way you can recognize advocates of your brand is through a customer referral program.
You can give them a discount or a promo code if they refer someone to your business and eventually becomes your customer.
2. Provide Exceptional Customer Service
Exceptional customer service attracts new customers to your business. It is also what makes them loyal to your business.
You can even use your customer service as a marketing asset. That's because customers who appreciate your service will recommend your products and services to their friends and families.
So much so that they would even mention customer service in their online reviews.
Approximately 91% of people aged 18-34 trust online reviews as they would with online recommendations.
This explains how customer service plays a role in improving your customer retention.
3. Tapping Creative Strategies
You should also ensure that your ads are creative enough to stand out from the rest of the pack. Doing creative advertisements will entice your customers to check out what you're promoting in the first place.
You can also try expanding your ad types to keep your customers' attention. You might also want to take advantage of suggested videos, instant articles, and then Facebook stories.
However, you must have a strategy in mind. Once your systems are consistent and creative, your customers will return for more updates.
4. Customer Engagement Is Key
Customer engagement keeps on evolving. This lets brands establish relationships between existing and prospective customers.
Engagement will not only remind your customers of the overall value of your brand but it will also keep them engaged with what you do.
Offering real engagement will allow brands to look more authentic while keeping customers engaged at a more personal level. Your customers will appreciate an instant response, so the last thing you want is to keep them hanging.
5. Use Facebook Dynamic Ads
With Facebook's Dynamic Ads, your products and services will be promoted automatically to people who show an interest in your brand.
Chances are, the majority of these people are already your customers. They visited your site yesterday, or they've been inactive for quite some time.
When placing a dynamic ad, you can use it to target people who have already been on your site. Similarly, you can also use it with a group of people who may not have been exposed to your content before.
Dynamic content will follow your target customers from one device to another and show your ad to them numerous times.
Capturing an individual's interest with dynamic ads is one of the best ways to keep your customers. That because your current content drives your customers to become repeat customers.
You can also engage prospective customers in the process.
6. Show the Additional Uses of Your Product
If there are any other uses for your products, you should let your customers know about them. If there aren't any, you can come with your list of benefits and then share it with your fans.
Now, think about how your products and services can provide additional value to your customers.
Thinking of creative ways to utilize your products allows you to cultivate meaningful relationships with your customers. And this can compel them to stay loyal to your brand.
7. Publicly Address Customer Concerns
Even the best business owners and marketers are prone to mistakes.
No brand will ever be immune to failed campaigns, mismanaged incidents, or even a social media crisis.
So, if ever you make a mistake, try to stay humble and apologetic. Also, look for ways in which you can move forward.
If you find yourself in a pickle, it would be best to own up and step up. That way, you can retain your current customers, and you can win over new ones as well.
Conclusion
The "social" in social media means interacting with your customers as if you are spending time with friends. This explains why social media is a great driver of customer loyalty and retention.
If you want to make the most out of your existing customers, consider following the tips listed above and start making a difference.