How do you retain customers? What makes them stick around? How do you get them back?
Retaining customers is vital to the success of any company. In fact, according to research from McKinsey & Company, retaining customers accounts for 70% of revenue growth.
“Customer retention is a key strategy for brands looking to increase their profitability,” says David Sacks, CEO at Customer Growth Partners. “It’s also a critical component of customer experience management, where companies focus on keeping customers happy.”
Here are 17 examples of customer retention strategies from some of the biggest names in retail, travel, banking, and tech.
1/17
Amazon
The world’s largest online retailer has been using customer data to better understand its customers since it was founded in 1994. It now uses this information to create more personalized shopping experiences and improve recommendations. Amazon’s efforts have resulted in increased sales and higher customer satisfaction scores.
2/17
Target
In 2014, Target launched an app that lets users check out with their phones instead of waiting in line. The app allows shoppers to scan items as they shop, then pay later when they reach their car or home. This frees up store staff time so they can help other guests.
3/17
CVS Health
In 2015, CVS Health started offering free flu shots to all customers who visit one of its stores. More than 1 million people received the vaccine during the first year alone.
4/17
Starbucks
To keep coffee lovers coming back, Starbucks offers discounts and rewards to loyal customers through its mobile app. Customers earn Stars based on how much they spend at Starbucks and what kinds of purchases they make. They can use these stars to redeem gift cards and buy merchandise in-store.
5/17
American Express
AmEx introduced Amex Offers in 2016. These special deals allow cardholders to save money by signing up for services such as insurance plans, mortgages, and credit cards. Cardmembers receive emails about new offers every day.
6/17
Apple
When Apple announced the iPhone 7, it included a feature called Bands. This allowed users to customize their phone by choosing different colors and materials for the bands that hold down the device. Users could select between gold, silver, space gray, and rose gold options.
7/17
UPS
UPS partnered with Walmart to send packages to customers’ homes. Now, UPS delivers packages straight to your door without having to go to a local post office.
8/17
JCPenney
Penney’s redesigned website in 2013 gave visitors more ways to browse products. For example, they could view images of clothing items before buying them.
9/17
Bank of America
BofA created Banker Chat to connect with customers after hours. Instead of sending automated messages, employees would talk to customers over live chat.
10/17
Taco Bell
Taco Bell started testing Doritos Locos Tacos in 2011. To celebrate the launch, Taco Bell offered a limited edition taco shell shaped like a Dorito.
11/17
Costco Wholesale
In 2017, Costco began selling wine by the bottle rather than the glass. The move made it easier for customers to sample different wines without spending too much money.
12/17
Walmart
Walmart introduced ClickList, which helps customers find similar items. When searching for a specific item, customers see related items along with prices and reviews.
13/17
Office Depot
Office Depot teamed up with Google Maps in 2012 to offer directions from any address to nearby stores. In addition, the company added a “near me” button to its website that directs consumers to local locations.
14/17
Sears Holdings
In 2016, Sears Holdings Corp. closed hundreds of underperforming stores. To entice shoppers into remaining open, Sears offered $1 off coupons in exchange for feedback.
15/17
Best Buy
Best Buy started allowing customers to return items via text message in 2010. With this service, customers simply enter the code sent to their cell phones when returning an item.
16/17
Dollar Tree
Dollar Tree has been giving away extra dollars to customers since 1993. Each week, the retailer sends out a coupon good for 10 cents off a purchase.
17/17
CVS
CVS Caremark has given out more than $2 billion in rebates to customers since 2008. It also provides free prescription drugs to low-income families and seniors.
Conclusion
The best way to retain customers is to provide them with value. If you want to keep customers happy, make sure you are offering them discounts or other incentives.
Customer retention strategies can be used to increase customer satisfaction and loyalty. A recent study found that companies that use these strategies have higher profits and lower costs. However, there are many factors that influence whether a strategy will work.
0 Comments