Converting a new customer is an exciting experience! Many businesses, on the other hand, make the mistake of overlooking their existing customers and focusing their marketing efforts on recruitment rather than building and implementing customer retention strategies.

According to Kissmetrics, retaining an existing customer is nearly 7 times less expensive than acquiring a new one.

Customer retention is not only cost-effective, but it's also a great branding exercise for delighting your customers and turning them into brand ambassadors If they like you, they'll refer others to you (for free!) Here are seven ways to keep your customers happy and engaged. Never undervalue the importance of customer retention strategies. Maintaining a favorable brand experience is essential for a successful customer relationship and higher ROI.

According to Harvard Business Review, onboarding new clients costs between 5x and 25x more than keeping an existing customer. You may raise profits by 25 to 95 percent by simply increasing retention rates by 5%.

Let us learn 10 crucial and effective customer retention strategies to grow your business.

1. Stay in touch with your customers and encourage them to interact.

Notify your customers about promotions, rewards programs, product updates, and any other content you think they'll enjoy. To encourage participation, ask people to share their stories or hold contests. Predict future challenges and propose new solutions to stay one step ahead of them.

Don't be afraid to contact customers if you haven't heard from them in a long time. Even if your efforts don't immediately result in sales, they'll go a long way toward keeping your brand top of mind with your customers.

2. Use social media to its full potential.

After the initial sale, social networks are extremely useful for keeping in touch with customers. By showcasing the human side of your business on social media, you can engage your customers and build trust. Keep an eye on your customers' thoughts, desires, and motivations. Identify and reward your most devoted clients.

By providing excellent customer service, you can help change the negative perceptions that some of your followers may have. To ask questions, register complaints, and resolve product issues, consumers have turned to social media platforms. Use it to demonstrate that your company listens to and cares about its customers.

3. Improve your customer's buying experience

Many customers value the quality of your service as much as the quality of your product—friendliness, comfort, and familiarity. Remember that the customer's perception of how they are treated accounts for 70% of the buying experience. Make your company a welcoming and accommodating partner in the eyes of your customers.

For starters, instead of attempting to make predictions based on general demographics or your personal perceptions, try customizing your offers based on actual customer behavior via analytics. Recognize long-term customers by their first names. Coupons, special offers, sneak peeks and thank you notes are all great ways to show your gratitude. To show them that you value their opinions, invite them to forums or ask for feedback.

4. Accept responsibility for your actions and apologize for your mistakes.

Your company's brand is as good as its reputation. Admit your mistakes and apologize if necessary when problems arise. Authenticity is demonstrated by honesty. It also shows customers that you're willing to fix broken processes and avoid mistakes in the future.

5. Maintain a steady pace.

According to a customer poll, a response time of 24 hours or fewer is typically seen as acceptable. Make sure your customer service actions are in line with the brand image you want to project as well as the expectations of your customers. If you're selling a product or service to boost system performance, for example, don't wait too long to answer consumer questions.

6. Listen, Understand and Care

According to Kissmetrics, 71% of customers have terminated a company connection due to bad customer service. It's never pleasant to lose a customer, but if it's inevitable, always try to conclude on a positive note. Keep in mind that how you treat a customer's issue.

7. Solve the issue

When clients have issues, make sure they can talk to a live, sympathetic person, preferably in person or over the phone. Even in our digital age, individuals enjoy interacting with one another. This desire is so strong that 75% of customers say it takes too long to speak with a live agent over the phone or through an online chat. Referring irritated clients to a FAQ page or an email contact form will almost certainly make things worse.

Give your employees the authority to solve problems as they emerge. Employees who are constantly informed and believe they have a chance to make a difference are more likely to care and take responsibility.

8. Keep your items and services at the forefront of your customers' minds.

Just because someone is a customer doesn't mean you can stop marketing to them. You must stay top of mind in today's industry, where competition is fierce and loyalty is minimal.

You can accomplish this using a variety of methods and procedures. Weekly email newsletters, social media contests, and providing high-value material are all viable possibilities (like videos, podcasts, or downloadable PDF resources).

9. Personalize!

According to Salesforce research, 75% of business customers expect organizations to create personalized experiences, anticipate their specific needs, and provide relevant recommendations.

Amazon's Personalized Recommendations

One of the most well-known and successful examples of personalization is the Toyota Prius. Amazon's product suggestion engine reportedly accounted for 30% of the e-commerce giant's revenue by 2015, and in theory, with five years' worth of more data pouring through its algorithms, its recommendations should only become more effective.

Netflix's Personalized Recommendations

Subscribers do not need to search Netflix for new content to watch because the machine learning algorithms in Netflix enable it to learn more about consumers and offer interesting recommendations that will keep people using the subscription streaming services.

10. Treat Your Employees well

The key to providing excellent customer service is to first and foremost treat your personnel well. A motivated employee treats the customer well.

Southwest Airlines

The airline's response to the Covid-19 incident is a recent instance of its commitment to its employees. At a time when other airlines are slashing expenses and laying off personnel, Southwest Airlines CEO Gary Kelly reminded his employees that, unlike their big competitors, they will neither furlough nor dismiss any Southwest employees. 

He also said that there are no plans to pursue furloughs, layoffs, pay rate reductions, or benefit reductions until at least the end of this year. He went on to describe how the company would leverage strong profits beginning in 2019 to help it get through the difficult moment.

Great customer retention strategies lead to good customer service, which further leads to a fantastic client experience, especially when your support team goes beyond simply reacting to issues and solving customer issues.  When support agents are empowered to go above and beyond for clients, they may create winning experiences that help you stand out from the crowd.

Read More: Customer Service: 10 Easy Steps To Deliver Excellent Customer Support!