This means getting right down to an individual customer level.
So what exactly is the art of customer retention?
And what should you be doing to better understand and hold onto your customers?
1. Look for changes in engagement from your customers
Seeing engagement by individuals should be relatively easy, assuming you have a Single Customer View.
But it’s not just about who uses your product the most. It’s about changes in their behaviour.
Look for those customers who are buying from you less.
- How long before they hit dormancy?
- And what can you do to prevent it?
It’s not only reduced usage that you need to focus on though – an increase in usage could also be a sign that someone is going to attrite. For example, someone bingeing on a TV streaming service, so they cancel before the next month’s payment.
So consider what might count as disengagement in your own sector, and learn to spot the signs before it’s too late.
2. The power of predictive modelling for customer retention
Profile your lost customers from your first-party data
- Who were they?
- What were their characteristics as a customer?
Identify common features and then look for similar profiles in your remaining customers.
Your data analysis will identify all the drivers of future engagement and value, and even their triggers.
Focus your marketing efforts on retaining those customers who will take the greatest value from you when they go.
3. Save those abandoned baskets to retain customers
Customers who browse but don’t checkout present an opportunity to both better engage them and to make a sale.
It’s the equivalent of in-store customers filling their baskets and walking out of the shop before getting to the till. If they do it too often, you might lose them completely.
An abandon basket strategy is commonplace for businesses now but to take it one step further you can target those who abandon their browsing on your website too through Real-Time marketing.
4. Using data to personalise for customer retention
‘Talk to me like you know me’ is often used for describing how a customer wants to be treated by a company.
As marketers we’ve never had as much data as we do now to do exactly that.
- Names,
- Addresses,
- Emails,
- Phone numbers,
- Devices,
- Browsing history,
- Purchases and returns,
- Every single action by time of day and location
Just to name a few.
But if you’re not using all this data to have relevant conversations with your customers, what on earth are you collecting it for?
Many companies are still sending one-size-fits-all comms to their customers. Focus in on what each customer wants and serve that to them.
5. Don’t forget about your competition
Consumers have a finite budget, make sure you know how your value model compares to your competition’s.
You don’t have to be the cheapest but you have to offer something that others don’t.
Brand loyalty isn’t created overnight – but it doesn’t mean they’ll stay with you if the competition is doing something better.
6. Not all customers are equal
Which brings us to the question – are all your customers actually worth saving?
What about the low value, low frequency ones who return a lot of their purchases and tie up your customer services line every month?
What about the late payers who need chasing every month?
Don’t waste time and money in trying to get customers back who are actually draining your profit, or at best, contributing very little.
7. Meet your customers to understand them better
Finally – talk to your customers. They know what they like and what they don’t – you can’t always get that from data.
Ask your departed customers why they left you, what you could do better. Ask your current customers what they like about you and how they rate you against your competitors.
And if you really want to get to know your customers, a Meet Your Super Customers project is your answer. Get the insights you’ve been looking for from your data to incrementally increase sales and retain more customers.
So what’s the key takeaway?
Don’t be complacent about your customers.
