7 Techniques Every Startup Can Use to Retain Customers

Thriving in a diverse and dynamic market has always been a challenge for businesses. To stay atop, many opt to focus on lead generation. However, startups should not overlook the more vital determinant to success—customer retention.

This refers to the company’s ability to engage its existing customers to continue buying its products or services over time. Customer retention reflects not just the success of a company in gaining new customers but how it delivers satisfactory and value-adding services to its existing customers.

Customer retention helps build brand equity and boost revenue. Per a survey by SAS and Loyalty360, 68 percent of the business sales come from existing clients. Marketing Metrics also underscores that the probability of selling to an existing customer is up to 70 percent.

If you are wondering how your startup can drive customer retention and breed customer loyalty, consider these techniques:

1. Keep a communication calendar

A communication calendar is a tool that lays out the what, when, and how of your company’s communication activities.

These activities may include your events, special offers, text messages, emails, and others that you intend to send to your customers periodically using automation software. 

Having a communication calendar aids you in sending your message to your market on time, easily managing the content flow, and tracking the progress of your activities.

By having this, you also get to ensure that your customers stay engaged and up-to-date on your latest product or service developments.

2. Personalize interactions with target customers

While convenient, one-size-fits-all messaging won’t resonate with all your customers. You can only clearly and effectively communicate to your target market should you tailor your messages. Some examples include personalizing your emails based on your customers’ needs, creating custom content that fits their preferences, and offering promos and discounts on their special days.

But of course, there’s no personalization and seamless transactions without quality data. Thus, you have to collect (and safe keep) your customers’ purchase history, preferences or interests, behavior on your web properties, interactions including message opens and clicks, card details, and other relevant personal information. As you collect data, make sure to be PCI compliant.

A report from Epsilon shows that 80 percent of customers are more likely to make a purchase when businesses provide a personalized experience. Who does not want to hear their names from their favorite brands?

3. Meet your customers where they are

You won’t attract more customers to your business by staying in one place or platform. You’ve got to have an omnichannel presence. This means that in addition to your brick-or-mortar or website, your business is also available on widely used social media platforms such as Facebook, Twitter, Instagram, or YouTube to reach your customers better.

Per Sprout Social’s research, 65 percent of consumers feel more connected to businesses that have an active social media presence. Through these platforms, you can provide them timely updates and product promotions, hassle-free purchase options, and strong customer support to stay connected with them.

Surely, they would appreciate it if you help them reduce the effort it takes for them to purchase from you or seek support.

4. Bolster customer feedback loop

A good business listens first before it speaks. Listening to your customers’ feedback allows you to be guided on your next business decisions, identify how you can innovate and improve, and measure customer satisfaction.

And it’s always best to complement this with a swift and relevant response to their reviews, queries, or complaints. This allows you to show to your customers that you care about them.

Likewise, this helps make them feel that they are heard and understood, thus leaving a positive customer service impression on them. 

5. Incentivize your customers’ loyalty

Everyone loves rewards. As a startup, another technique you should not miss to see your customers journey with you as you grow is to express your appreciation to them through giving rewards.

Let your customers have that five-star experience with you by giving out loyalty cards, special offers, and discount vouchers for them to enjoy.

Such programs will also help you in collecting customer data that you need to personalize your approach to them.

6. Build partnerships with other businesses

Don’t be a lone wolf in this diverse business world. Establishing valuable partnerships with visionary businesses allows you to expand your market reach, create a bigger buzz around your business, attract investors, and supercharge your business’ innovation.

Some ways you can partner include doing friendly shout-outs, guest blogging, co-organizing events and promotions, and utilizing affiliate marketing—a sales tactic where you collaborate with a third-party marketer to generate leads to your products or services.

7. Pay it forward

Be a relevant business—one that does not only drive sales but also drives a meaningful impact on people and communities.

Some businesses opt to go plastic-free to promote environmental stewardship, donate a portion of their proceeds to causes, actively provide upskilling opportunities for their employees, offer free expertise, and promote causes on their blog. You can identify your advocacies and align them with your mission and vision.

Stackla’s study shows that 86 percent of consumers see authenticity as a huge factor when deciding what brands to support.  So as you pay forward, make sure to be authentic.