CUSTOMER RETENTION STRATEGIES THAT ARE NEEDED IN TODAY’S RETAIL SECTOR

Customer retention in today’s retail sector need some dynamic, creative and most intelligent retention strategies. These are strategies for the sake of increasing the profits. Furthermore, for the sake of return on investment for the retailers. Retention strategies are target oriented strategies that aim to target the benevolence and attention of customers in the dynamic retail environment. Why customer satisfaction is a prime focus? The most obvious answer is customer loyalty. An aspect that has a high level dependency on the retention strategies with a focus on any one factor. For example, customer feedback regards to a new product launch.

Why a single customer is so important for a retail environment? An ironic answer is every customer is worth the difference. Hence, if you tend to ignore one, you will obviously ignore many. Thus, ignorance in most circumstances, or partially rare circumstances is always a negative approach in a retail environment. It highly effects the bench-marking and creates plenty of hurdles in futuristic goals.

As a matter of fact, the difference between companies that grow and companies that don’t grow is customer retention. The more customers that you can keep and continue to sell to, it’s more likely you are to achieve your business goals. Same is the case with CFT or Customer’s Foot Traffic. The higher the foot traffic, the higher the profitability levels in the retail sector.

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ROLE OF CRM IN IMPROVING THE CUSTOMER RETENTION:

When it comes to CRM or Customer relationship management, the secret or the universal secret lies in just one word, ‘Relationship’. CRM is the art of knowing your customers more closely. Hence, while creating relationship and improving the relationship for a long term and a sustainable future together. How well you can improve customer engagement for the sake of improving the customer experience. What are the key things that are needed to influence customer retention? Is the key understanding or goal of a CRM strategy?

The customer retention strategies are not done on paper, you need to have a wide range of data and information about your customers. In addition to this, their purchase and sales activities. Their buying behaviours are a high-level necessity for improving the face of the CRM and proper relationship management.

Here are some of the most integral Customer retention strategies;

1. BETTER LISTENING SKILLS WITH YOUR CUSTOMERS:

Improving the listening skills with your customers is a high level need in the retail environment. Whether it’s in-house retail marketing or online retail. Obviously, both of them needs to be given the same treatment. According to an Oracle report, a huge 90% of the customers surveyed claimed to switch to another competing brand, after having a bad experience. Most of them had a bad experience with the customer service not listening to their queries. Alternatively, rather ignoring them in few cases. The best way to improve such survey results is to ask them more frequently and enrich a customer feedback system.   

2. TARGETING THE CUSTOMERS WITH SOME SPECIAL OFFERS:

Targeting customers with special offers always helps in increasing the retention strategies. The more you know about your customers, the better you can tailor your approach to each individual. A CRM software lets you view a customer’s purchase history. Ironically, so that you can easily determine what kind of offer will be the most appealing to each individual. Furthermore, also increases relevancy, something which will keep your brand on the customer’s minds.

What needs to be done is the identification of ways to revive customer interest. On top of this, finally to convert it into an actual purchase. This can be done by a customer service agent by offering them some special discounts or some additional value for your product.

3. KEEPING UP WITH YOUR FOLLOW-UP PROMISES:

Keeping up with your follow-up promises is truly an ultimate sign of pure professionalism in the business world. Part of the scheduling features in a CRM software allows you to schedule follow-up calls or even emails. Alternatively, assign follow-up tasks to the members of your team. Follow-up procedures not only creates importance in eyes of the customers. But, also helps in confidence building between the two, i.e. customers and retailers.

A follow-up procedure aim to take customer feedback or just ask them their satisfaction level with a product or service is something maintained by all retailers. However, not everyone knows how to use the follow-ups effectively. Especially, for the sake of bringing improvements in customer retention strategies.

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4. REWARDING THE MOST PROFITABLE & VIP CUSTOMERS:

Rewarding the most profitable and the VIP customers should be ranked as the number one retention strategies. These are customers that as a retailer you can’t afford to ignore or let go. Importantly, as they have been high level contributor towards your sales. Knowing your customer who gives you the most revenue always allows you to allocate your vital time and resources efficiently. At the same time it also increases your chances of cross-selling or up-selling.

These rewards can be in form of gifts or offers or packages that will make your customer think of choosing your products or services again and again. Awarding your VIP customers also helps in creating a long term rapport. Finally, a relationship which in technical retail terms are known as ‘customer retention strategies’.