Customer retention should be a priority for all businesses. However, this is more so for small businesses that lack the funds for mass marketing (consistently attracting fresh waves of clients). Research shows that customer retention has significant benefits. Specifically, a rise of 5% in retention may lead to a 25%–95% increase in business revenue.
Since small businesses rarely have the blockbuster budget to create and run sophisticated customer outreach campaigns, there’s a need to get creative. And it all begins with a closer look at the buyer’s journey and the key factors that drive customer loyalty. The process will help small businesses assess their customer’s lifetime value (CLV) and determine the best strategies to optimize their experience.
Accumulate Feedback
The best way to know what customers want is by asking them. And this doesn’t necessarily involve pricey outreach campaigns backed with costly incentives (although those work fine too if you have the budget). One thing to note about feedback is that it should include the good, the bad, and the ugly. A quality customer feedback program takes every response/opinion into consideration.
Online surveys are some of the most affordable and effective methods of receiving valuable feedback from your prized customers. Small businesses may consider implementing drip email campaigns that automatically send feedback forms to customers after they fulfill an action (e.g., purchasing a specific item).
Surveys will help businesses discover the sentiments of their customers and make the changes before the matter goes beyond control. Consider it a proactive method of tailoring to the needs and concerns of customers. With feedback, customers feel valued by a business and are more likely to return for repeat purchases.
PassKit provides seamless integration that empowers small business owners to deliver quality surveys and communication via POS, emails, and proprietary systems.
Optimize Services
Seventy-one percent of consumers have ended their relationship with a brand due to poor customer service, and 61% of consumers jump ship to a competitor’s brand upon severing ties with a business. You’ll need to hire the right people for the job, especially if you run a small business.
Each employee should provide the best service standards at all times and represent your business mission and principles. Small companies have the advantage of fostering close (near-personal) connections with every customer on a granular level. It’s an impossible feat for MNCs and national brands managing a vast customer database.
Small companies should check in with their customers often, and essentially build a strong rapport with them. When possible, small businesses should personalize their services based on customer feedback and purchase history—also, there’s a need to pay attention to the minor details, such as addressing customers by name in newsletters and emails.
Then there’s the need for businesses to stay accessible and present. Companies should avoid delaying replies to customer queries, which usually leaves a negative impression. Ensure there are employees specifically tasked to manage customer communications across social media platforms and proprietary communication channels.
PassKit offers bespoke app development and deployment services that will enhance your customer outreach programs. Your employees can look forward to conveniently maintaining optimal communications with every customer without missing a beat.
Perhaps most importantly, your business should always uphold its end of the bargain. Few things hurt customer relationships as much as false advertising and broken promises. Trust is one of the most precious commodities involved in running a business, and your service standards will directly affect it.
But customers should also have a good reason for sticking with your business amid the sea of competitors. Excellent service and attractive price points will not suffice in the increasingly competitive business world. That’s why most successful businesses have a unique customer loyalty and reward system in place that proves to be the ultimate game-changer.
Leverage with a Customer Loyalty Program
Customer loyalty and reward solutions have existed for decades as a significant part of customer retention strategies for small businesses. In their modern digitized context, these systems provide customers with easy-to-redeem rewards while offering businesses insightful shopper data. Businesses should also implement various types of customer loyalty reward programs—such as digital coupons, ongoing memberships, and referral discounts.
Additionally, it’s essential to provide mobile-friendly customer loyalty programs that users can apply on the move since more than half of online shoppers purchase via their mobile. However, creating and managing a dedicated customer loyalty application might prove too costly for small and medium-sized businesses.
PassKit Solutions
PassKit helps small business owners navigate the cost barrier and hassle with intuitive software solutions to customize and launch their customer loyalty programs with ease. The PassKit method provides a guided approach to creating and maintaining reward passes linked to your customer’s Apple Pay or Google Pay e-wallets. With PassKit, there’s no complexity involved in user onboarding and development delays.
The Coupon Creator enables business owners to design and distribute original digital coupons for their customers, featuring attractive offers and discounts straight from their e-wallets. PassKit also offers a member management solution for the fuss-free creation of digital membership and loyalty cards that will keep your customers’ wallets clutter-free.
And if you’re concerned about the technicalities involved in running a customer loyalty app, PassKit handles that too. The developer kit will help your business integrate newly minted passes to existing customer programs, offering a comprehensive and seamless experience for your most valued customers.
Check out these PassKit samples to discover the possibilities for your business, or schedule a call with one of our experts to optimize your customer retention strategies today!
