Nurturing customer relationships is crucial for the growth of any business. That said, many small businesses get distracted with spending too much time, money and effort recruiting new customers at the expense of the ones they already have. Companies should focus on retaining their existing customers as these are the ones that provide the most consistent long-term revenue streams.
According to a Harvard Business School report, increasing customer retention rates by five percent can increase profits by 25 to 95 percent. A satisfied and happy customer will keep coming back and will even share his/her experiences with other potential customers, positively affecting your business. To solidify your relationship with your contacts in a meaningful way, Check out these five smart ways to keep your contacts engaged:
1. Contests and sweepstakes
Who doesn't enjoy being rewarded with free stuff? Launching a contest through social media is a great way to engage with contacts and deepen their connection with the brand. There are numerous ways to run online contests, including having participants submit some type of original content, enter their contact information, or even share one of your social media posts to be entered into the sweepstakes. Regardless of the type of contest you run, make sure to select a reward that your audience will love and want to win.
2. Promote stand-out customers
Any business that takes time to appreciate its customers will eventually build loyalty. Some of the ways you can acknowledge your stand-out customers include having a customer of the month, sending appreciation emails and publicly congratulating them through your email list and social media accounts. If you want to go the extra mile, consider holding a customer appreciation event to thank them for their loyalty!
3. Discounts and exclusive offers
You can reward your repeat customers with special discounts and exclusive promotions to retain their loyalty. Instead of sending promotional offers to new customers who might only take advantage of a sale but never return, use that opportunity to reward customers who have proven their desire to spend on your brand.
4. Build a community
Consumers want to interact with a business that clearly understands their needs and often involves them in the decision-making process. Consistently reach out using marketing automation, invite customer interaction by building campaigns that ask for their feedback and make your relationship more human and personalized. This will ensure they feel like they are more important to your business than a simple transaction. Research shows that personalization can lift revenues by 5 to 15%.
5. Use social media and keep your content relevant, vibrant and personalized
Social media is another great way of engaging with customers and build a conversation around your company. Facebook, LinkedIn and Twitter are among some of the platforms where businesses can set up topic or brand communities. Additionally, your company should post valuable content that establishes you as an authority in your field. Aim to convey information in a way that keeps your customers interested and engaged. No one wants to buy from a brand that seems to be lifeless, barely showing any energy or passion for what they are doing.
Strive to build customer loyalty
No matter the type of business you operate, there is need to focus on developing a lasting bond with your contacts, to build loyalty and increase customer retention. Captivate the interest of your target audience and constantly keep them engaged with these fun, effective strategies.