Customer Feedback and Data Analysis: The Keys to a Good Customer Retention Rate

One method of achieving this retention goal is to focus on customer feedback and to perform data analysis based on that information.

July 17, 2017
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Every company needs to focus on one, a key aspect to keep their business going: retaining customers from one purchase to the next. Efforts focusing on how to bring in new customers are a great feat to undertake, but such tasks are meaningless without considering a way to bring those customers back again and again. One method of achieving this retention goal is to focus on customer feedback and to perform data analysis based on that information. However, there are other, essential things to focus on for creating a good customer retention rate.

Understanding the Typical Customer’s Profile

Building a solid customer retention rate begins long before the company offers their services online. Marketing and management teams need to come together and focus on generating a profile of what their typical customer base will look like. Things such as race, gender, age group, geographic location, and other such demographic information need to be compiled into a few different profiles. With these profiles set in motion, then a company can focus on figuring out ad campaigns that will attract more customers.

These profiles are not stagnant, though. As the company grows, they need to be revisited and refined as needed to tailor the company toward a specific customer type. Additionally, it is important to understand that more profiles might need to be created over time. These profiles are going to match with new products and services that a company might be willing to offer in the future. These profiles will ensure that retaining customers happens for a lifetime instead of just for one instance.

Giving Customers a Positive Experience

First-time customers and returning customers alike are going to look for an ease of use with any company’s website. Therefore, the website’s layout needs to be easily understood in how it works. Having a no-gimmicks policy here is what will leave a lasting impact. Customers want to have their purchasing process spelled out for them in black and white without any gray areas.

At the same time, customers who need to reach out to the company for questions and concerns need attention above all. The more promptly an accurate answer is given to their queries, the more likely they are to come back and purchase other items in the future.

Understanding Customer Retention Goes Beyond Ad Campaigns

Advertising campaigns are a great idea to generate business. They should be focused on bringing in new customers while attracting repeating customers to revisit again, though. In essence, focusing on customer success rates matters more than the money being lost or made through an ad campaign. After all, returning customers are going to expect the same ease of use with a company’s website time and time again.

Offering Subscription Information

Most companies think of the word subscription as offering a specific product at a certain price for each month. However, there is a way for subscriptions to generate customer retention without costing the customer anything. Various companies have e-mail lists that customers can subscribe through as a means of communication. Customers on these subscriptions are likely to hear about ad campaigns and new products or services first. This tactic is great for encouraging customers to hold conversations about a business without being told to do so. Consequently, word of mouth advertising is still one of the strongest marketing modes available today. This type of marketing becomes even easier as customers only have to share the email to other e-mail addresses in their contact list with a push of a button.

Moving Subscription Models to Social Media

What most customers do not realize is that a lot of businesses pay attention to people who subscribe to their social media outlets. Going through Facebook and generating a page about a company is easy, and it is a great way for customers to be reminded about upcoming sales and new products or services. One, simple message on a social media post can reach thousands of customers within minutes. This number skyrockets as people are likewise able to share the post by simply pushing a button. Statistics indicate that customers who subscribe to a social media outlet are bound to return as information becomes available. Therefore, social media posts, like e-mail subscription lists, need to be updated with information routinely to maintain customer interest.

Conclusion

There are many ways to go about retaining customers for the long haul. Most of these efforts are simplistic and do not take much time to perform. The overall goal, though, is to make a first-time customer feel enticed to be a full-time customer. The more welcome and informed they feel in the long run, the more likely they are to return. After all, the main point here is to form a relationship with that customer, which will last a lifetime.