Customers’ loyalty towards brands is one of the deciding factors for its success. One-time customers are never going to show loyalty towards the business and thus, service providers need to work on customer retention strategies. It is one of the important phenomena for a sustainable business growth. Even researches claim that a slight 5% customer retention can offer profits up to 95%.
Understanding how businesses have the chance to build customer retention programmes will benefit organisations in the long run. Thus, a business must have robust customer retention strategy to gain continuous profit. It is a better practice to retain old clients than making efforts in adding new ones. It also involves fewer expenses, which is again beneficial from the business point of view.
Before getting deeper into the client retention strategy, let’s take a look at why clients may leave a business:
- Nearly 68% of clients leave a business because they are not happy with the services.
- Some find competitor’s services more appealing
Both these factors are a big threat to the business, and thus, it is important to apply some retention marketing policies. To familiarise you with the ways that could help in client retention, here is an explanation of the top practices that are generally recommended.
The Freemium Model
There is no doubt that freemium model does work for the business. If done effectively, this model can help business professionals convert users into customers who pay for your services. The practice is easy to initiate by giving a free 1-month trial to the clients allowing them to use the services and the products for free.
Service providers can also choose to introduce the features for customers in a way that they will be awarded with free incentives if they successfully invite other users to sign up for the services through email or other social media networks.