According to Bain & Company, merely a 5% increase in customer retention correlates with at least a 25% increase in profit.
On one hand, brands are ignoring the customer retention rate, while on the other hand, a few brands are nailing their unique Customer retention strategies. Let’s dive in together to know the brands and learn from their unique customer retention strategies.
1.Amazon – Though, being a commodity-based business, Amazon launched its Prime membership. Initially, they promised free and faster delivery. But this was not enough for their customers to love them. Therefore, they have added movies, books, music, etc free for their prime members.
Amazon’s Prime membership is one of the most unique loyalty programs. There was no way for customers to go back to any other eCommerce site because of the numerous resources that Prime members get. These loyal customers spend around $1300 more compared to $700 by nonmembers every year.
Amazon’s Personalized Product retention is a very unique customer retention strategy. Leveraging the data of its customers, Amazon offers product suggestions to each customer based on their previous purchase decisions. These personalized recommendations make the customer feel special by helping them to find the right products. 35% of Amazon’s revenue comes from its recommendation engine.
2. TOMS – Trust is the most important factor to build brand loyalty and brand loyalty means customer retention. As humans, we tend to trust the people who are good to others. Brand loyalty can be built by showing people what you stand for.
TOMS has built an altruistic brand image among the consumers through its “One for One” policy of donating a pair of socks for every pair being sold and several CSR activities. Find out something that people care about and build your brand’s message around it.
Your customers feel like they are contributing to the good cause for every purchase they make. It inspires them to make more purchases from you.
3. R&G Technologies – Customer retention for a B2B brand isn’t that easy but R&G technologies have cracked the code. R&G technologies is an Australian IT support firm that has built a strong connection to its clients, resulting in a higher retention rate. Their Customer satisfaction survey makes them stand out among the competitors. It allows their customer to express what they feel. Talking to our customers and genuinely caring about their opinion can help you to build a loyal and strong bond.
Asking the right questions to gain important insights which help in important business decisions is a crucial factor for R&G technologies. Therefore, they carefully listen to the challenges faced by their clients to improve their services.
4. Hubspot – Your after-sales service is a key factor involved in customer retention. If your customers have made the purchase, that doesn’t mean one should remove them from the email list. Educating their customers with free ebooks, video tutorials, courses, emails have helped Hubspot to have a high retention rate.
Hand holding your customer, at each step in their learnings makes them feel really special. The feeling of being special is the ultimate formulae of a high customer retention rate.
5. Evernote – People tend to buy a product more likely if any of their friends or family have suggested it to them. That’s the basic idea behind the referrals program that not only brings new customers but gives a strong reason for the existing customer to stay, for the referral rewards.
Evernote leveraged this reward loving behaviour of the customers and launched their referral program. The customers are rewarded with the free trial of their Premium version for inviting a specific number of new members. The referral strategy has helped Evernote to become the market leader in the industry. The referral program not only brought new customers but gave a solid reason for the existing ones to stay.
6. Costco – It is among one of the world’s largest retailers. Costco offers membership cards to their customers. They offer exclusive offers, discounts, and gifts for their members. The Costco offers make the customers look bulk buying the best option for them, resulting in saving money for customers and good sales for the brand.
The customers with membership are offered free samples of several products that help them in decision making for the product that meets their expectations. Along with it, they offer product return policies for several products. Therefore these enormous benefits bring customers back to their store every time they shop.
7. Starbucks – It is not possible to complete this list without Starbucks. As they are one of the best when it comes to customer retention and high brand loyalty. Starbucks is rewarding its customers for their spending with Starbucks.
They are rewarded with stars and each person has a different star rating depending upon the amount spent by them. These stars are the reward points. The customers can use these reward points to get free refills, exclusive offers, birthday gifts etc.
Customer retention is a crucial segment for every business. Each brand has a different customer retention strategy that works best for them based upon their customers. You need to find the best strategy that fits your customers.