Going out to run, you put on the new Nike shoes. Intuitively you know what to do next: enter your Facebook account, tapping into the Nike+ application. It takes you a second to recall what day it is. It is Saturday - high time you set a new running goal in the app. Having never run 10 kilometres, this will be your new record. Reaching a milestone means receiving a congratulatory message from world-renowned athletes - you can’t wait to get it done just to be praised by Usain Bolt. Nike keeps you motivated. Nike keeps you engaged. Why would you change the Nike app for anything else?
Leads retention or generation?
According to the research carried out by Frederick Reichheld, increasing customer retention rates by 5%, increases profits by 25% to 95%. It is no wonder that nearly all the best marketplaces turn away from leads generation strategies, in turn moving towards leads retention regarded as 25 times less expensive.
Today, most clients get retained through web platforms that efficiently keep existing customers happy. Although the strategy changes from business to business, there are 4 techniques that all biggest brands use to help their users through their customer journey and retain them along the way.
Create feedback loops and referrals programs
Biggest businesses know their clients to the core. By using either clever testing or surveys, they heavily rely on customer feedback. Effectively, they are provided with patterns of customer behavior that can be further analyzed and shared within the organization. In effect, through the customer feedback loops, businesses can vastly improve their products and retain their customers based on users’ suggestions.
In turn, other companies turn in a different direction by fueling retention with their referral programs. MeUndies, an underwear company, encourages customers to refer a friend from the moment of purchase. For every friend you refer, you get $20, and they get 20% off their first purchase. When done well, both feedback loops and referral systems can be highly effective for retention.
Form a community empowered with convenience
When making a purchase, 81% of customers claim that trust is a key factor in their decision, where the feeling of belongingness seems like a prerequisite. That is why many companies focus on building a community within their web platforms. Flo, a company analyzing individual health data, pairs each client with a virtual assistant and uses chat rooms where you discuss your health issues.
In doing so, it supports the idea that the community must revolve around the convenience of their users. When Starbucks founders created Mobile Order & Pay feature, enabling the clients to order coffee before they even arrive at the store, Starbucks made convenience the company’s main strategy to retain leads.
However, after all, the big brands do not ever assume they reached the maximum level of leads retention: just because customers buy from you, it does not mean they will trust you forever. You need to keep juggling your strategies relying not only on attracting new customers. Sometimes, retaining your existing customers seems more cost-effective than wasting time and energy on nailing down new clients.
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