Generating new revenue is great, but retaining that revenue is even more important. Reports cite that obtaining a new customer is 5 times as expensive as retaining an existing customer. Additionally, the probability of selling a new customer is 5-20%, whereas the probability of selling a previous client is 60-70%. Here are three kung-foo kicking strategies to help your company improve customer retention.
When I first started Confetti our rebooking rate hovered around the 65% mark.
One day, I asked myself, “If I booked an event online, how would I want the experience to play out for a great result?"
Next, I jotted down those ideas.
One thing I realized was that I would want someone to email me a day before the event to assure me that everything was in order and that someone was there for me if I needed anything.
As a result of that idea, here is the exact email that I sent to our next new client:
Hopefully everyone on the team is excited for tomorrow :) Everything is confirmed and ready to go.
I'll follow up with you around 8:00 PM to see how everything went.
During the event, if you need absolutely anything I will be readily available at 917-XXX-XXXX.
We want to make sure you have the best possible experience with us always - if you ever come across anything concerning or bothering even to the smallest degree, just give me a call as I probably (hopefully haha) have an easy solution for it.
Oh, and don't forget to have fun!!!
Today, this email is used the day of/or before every first client event.
I normally receive responses like “Thank you! It’s been great working with you so far and the entire team is very excited."
Since implementing this small change we have boosted customer retention by 30%.
Micha, CEO of Giftedd, uses a similar email template during the Post Onboarding experience of a new client:
We're so excited to work with you and XXX – so thank you for the opportunity and trust!
We understand the importance of employee retention and we’re here to help you maintain a company culture where your employees feel appreciated and helps retain the talent you worked so hard to find.
My top priority is to ensure XXX's entire recognition and gifting process is seamless and enjoyable for all involved.
I'll be sure to follow up with you after you send your first manual gift and of course, I am here to walk you through any questions you may have during the process.
Our team is constantly tweaking, growing, and developing using the feedback our clients provide us. If you ever think of ways that we can improve our offering, I'd really appreciate you reaching out.
And as I mentioned to you before, I'm always available if you have any questions or concerns.
In both email templates you get a genuine sense of care for the client. It’s important to ensure the client that we’re not just here during the process of selling you, but also when things go wrong (which sometimes they do!).
Kind and supportive email strategies are nice, but CEO of HYPR, Gil Eyal, approaches customer retention head on with technology. HYPR is a comprehensive platform aggregating over 9 million influencers across every social channel. It allows users to search for influencers by name or by audience demographics, allowing marketers to find the best social influencers available for any campaign.
HYPR relies on a preemptive approach using an internally built tool that looks at every paying user and generates live reports of how much they use the system. A two day decline triggers a notice to the Account Managers to reach out to less active users.
The system also knows how to recognize “disappointed” behavior. For example, if someone repeats a search again and again, or if the search prompts a small number of results – the system automatically offers the client an opportunity to speak with someone in order to improve their experience.
Gil says “The key is to keep a close eye on any changes in their behavior while they’re using your services.” He advises, “…every company needs to customize their customer retention strategy for their product. Engagement is primarily about understanding your customer and being able to recognize in advance whether there is a change in their mood.”
When you think of UX you often think about websites, applications, dashboards, etc. UX guru Rotem Elimelech and VP of Product at Adoric, an innovative provider of digital marketing services, is so passionate about creating a friendly user experience he’s even integrated the concept into their customer retention strategy.
Adoric’s technology has a lot of moving pieces, which causes customer updates to be long and information heavy. Utilizing bolding, highlighting, spacing, and numbering techniques Adoric was able to breakdown the information they were trying to convey to their customers and give them easy and actionable instructions.
Articulating service updates and advancements is difficult in person, let alone via email.
A typical email from Rotem acts as one organized CTA (call to action). We’ve outlined the technique below by condensing this article into an email template:
The point of this email is help you improve your customer retention rate.
1. Send supportive & friendly emails
By sending supportive emails throughout the relationship with your client, you establish strong communications and cement their trust.
The goal: Your customers will trust you, refer you to others and return for future business.
Our progress: We’ve put together two email templates for you (attached).
Notes: Send one of these email templates to approx. 20 clients and get back to us with the results on customer retention.
2. Use preventative technology
By using client self service portals, your team can empower customers with the tools and resources that they need to solve their own problems. technologies within your platform, your team can become aware of unhappy users and take action.
The goal: You can address customers’ pain points before they leave.
Our progress: We’ve done research and recommend Intercom as one tool to help you do this.
Notes: We want you to practice this outlining technique yourself, so we left #3 below empty as an exercise. You can fill it out and post it in the comments below!
3. Implement user friendly emails
The goal: ...
Our progress: ...
Notes: Customer call to action...
By organizing what are supposed to be long, time-consuming emails, this method allows clients to quickly scan, get the key points and go back to their work without feeling hassled. Although just a template, the point is to show you how Adoric simplified emails into short sentences, digestible sections, and most importantly actionable points. Adoric saw a 15% increase in customer retention after implementing this technique.
That equates to a few more customers you don’t need to say good-bye too. :)
Oh. And more money, of course.
Don’t wait till your customer is at risk of leaving. Take the time now to look at your business and ask yourself, "Am I doing everything in my power to make sure my customer has a great experience?"
You can easily check by imagining you’re in your customer’s shoes. Simply jot down ideas for how you would want the experience to go step by step → and implement!
If you get stuck along the way or have some ideas and want my opinion, email us at email@example.com and we'’ll be happy to help.
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