Customer retention is at the core of every successful and growing business. To achieve this goal, it’s key to understand what’s driving loyalty today while appreciating that the needle is constantly moving as customer preferences evolve.
Surprising Loyalty Insights from Recent Data
Some recent data has some surprising insights. For example, you might think that customers who buy frequently from the same company are demonstrating loyalty. However, 67 percent of customers who meet this criterion claim they are not actually loyal to that company!
The Risk of Customer Defection
Without loyalty, the risk of customers deflecting to another company is ever present. This same research indicates that approximately a third of customers have changed companies in favor of a brand that offered better promotions, and 21 percent did so because they didn’t feel valued as a customer.
Loyalty as an Ongoing Initiative
These stats reinforce the importance of approaching customer loyalty as an ongoing initiative rather than a one-and-done activity. Companies who are serious about keeping customers must make the effort to connect with them through personalized communications that include targeted promotions and other tactics that put the customer first.
The Power of Personalized Communications
There are many ways to provide personalized communications to customers. One important place to start is by identifying customers’ communications preferences and then catering to those preferences. Allowing customers to choose whether they prefer text messages, email messages or another option will show them that their preferences are heard and respected, an important step towards helping them feel valued and receptive to your company’s messages. Digital communication strategies are an important part of this puzzle as more and more customers are going digital, and they want the companies they do business with to keep up.
Other ways to personalize communications are to send customers information on the topics that are of interest to them while steering clear of the conversations they’ve opted out of. You can also include their name in emails and direct mail pieces to reinforce that the message is just for them.
Cross-Selling to Strengthen Customer Relationships
In addition to personalization, companies can demonstrate to customers that they are valued through targeted cross-selling opportunities. This is a good bet for your business as research indicates that current customers are 50% more likely to try new products compared to recently acquired customers. Using the data you have about your customers’ preferences and purchase history, provide them with suggestions for additional products or services from your company that complement their interests and previous purchases. Remember that promotions are important to customers, and asking them to try a new product or extend service is the perfect opportunity for a targeted offer.
Why Personalization and Cross-Selling are Worth the Effort
Integrating personalization and cross-selling opportunities into your marketing program takes some work, but the payoff is well worth it. A trusted partner can help you simplify the process and reap the rewards, taking the guesswork out of customer loyalty while freeing your team to focus on other initiatives. From e-solutions to direct mail, Matrix can help you build a comprehensive customer communications system that fosters the loyalty you need to build your business.
Building customer loyalty is business-critical, and we’re here to help. Contact us today to get started.
