With the promise to opt-in or cancel at any time, subscription businesses have truly empowered the contemporary consumer. As a result, the success of a subscription-based business relies on a customer-minded focus to achieve sustained long-term growth.
While subscriber- and membership-driven businesses are now working aggressively to acquire new customers in the post-Covid environment, it can be expensive and time-consuming as well. The key to effectively mitigate the cost of acquisition is to also have a healthy retention dynamic.
So, what’s the secret to achieving a healthy retention rate that fuels growth and revenue? Customer retention does not cost nearly as much as acquisition, and even small improvements in retention rates can produce huge financial impacts. It is possible to ensure a steady stream of income and significantly reduce the churn rate with the help of several retention strategies. Let us check out some foundational options and then a relatively new option!
1. Thank your customers
One of the best retention strategies to ensure that customers stick with you is to add value to them and treat them nicely. Expressing your gratitude from time to time is an excellent way to show that you care and appreciate them as customers. This goes beyond the transactional relationship. If you help them feel like they matter all the time, it is more likely they will continue being a loyal customer.
2. Offer multichannel support
Each customer has a preferred way of reaching out to your business. Offering support on as many channels as you can gives clear access to your customers so they can communicate with you whenever they want. Whether you choose to engage them via a live chat tool, email support, social media, or a traditional call center, use as many options as possible to make sure you keep them well informed and happy.
3. Keep your customers in the loop
Purchase frequency is the backbone of a successful subscription or member-based business. Email marketing is one of the best ways to keep your customers in the loop and stay engaged. Sharing an email with onboarding tips for new members or special “return rewards” for inactive customers can trigger better retention. However, it is also crucial to avoid spamming your customers with unnecessary or lengthy emails. Keep them short, crisp, relevant and beneficial.
Another way to encourage repeat purchases is by sending follow-up emails. You can send an acknowledgment email after their purchase and even recommend products/services related to their initial purchase. This will make your brand more approachable to your customers and they will be less likely to drift off to your competitors.
4. Use the element of surprise
Everyone loves a nice gesture or a surprise. Unexpected rewards are a great way to build thoughtful relationships with your customers and convert them into brand loyalists. Even a small gesture like a complimentary service or special rewards on purchases during special days can delight your customers and make them come back for more.
5. Act on customer feedback
Share well-crafted surveys with your customers asking them what works and what doesn’t. You’ll likely receive informative and helpful replies from loyal customers that can be used to make strategic business decisions. Gathering customer feedback can only serve to strengthen product design and reduce churn rates.
When the inevitable mistake happens, use that feedback to sharpen and improve your approach to prevent it from happening again. In the meantime, acknowledge the mistake and correct it as soon as possible. An important part of subscriber and member retention is transparency and strong mutual trust. Sweeping a mistake under the rug will serve to negatively impact customer perception of your organization.
6. Improve customer service
Customer service can make or break a company. When done well, it creates loyal consumers. When not properly provided, it can be a huge turn-off. If your organization has experienced a high churn rate, give your customer service process a check-up by asking these questions:
- Is it easy for customers to reach you?
- What is the average wait time?
- How well does your customer service team respond to customers?
- Is your customer support entirely automated or does it add the human touch?
7. Create a smooth onboarding and renewal process
For subscription and membership-based products and services, it is crucial to have a smooth onboarding process so that customers understand their purchase better. The onboarding experience is a huge factor that drives customer retention. Customers who have a seamless and enjoyable onboarding experience are most likely to stick around for the long haul.
8. Product announcements and updates
Product news is a great reason to communicate with your customers and also inform them of new rewards, promotions, value-added benefits, and so on. Keeping your customers up to date with new product announcements and services will keep them engaged and curious to try out your new options. You can also ask for customer feedback on new products to give them an opportunity to feel heard.
9. Understand the key metrics
Tracking your subscriber or member data is crucial to revealing the insights needed to help reduce the churn rate. Strong engagement rates indicate high customer satisfaction. Utilizing key metrics and establishing clear goals is vital for the success of any business.
10. A relatively new and increasingly popular option
Many growth-oriented businesses are exploring new and better ways to keep their subscribers and members engaged on a regular basis. One of the most popular trends is the development of unique loyalty programs, and in these unprecedented times following the pandemic, a privately branded travel club is one of the options that has been gaining steam.
Travel clubs are proving to be an ideal solution for both B2C and B2B companies. Almost everyone loves travel, so an exclusive travel club gives a company lots to talk about with their subscribers and members. It becomes the ideal platform to engage and motivate members into buying more and earning rewards in exchange for their purchases.
An innovative loyalty program such as a members-only travel club incentivizes customers for their continued value to the business. It will help encourage repeat purchases and cultivate member loyalty. You can even encourage new customers by rewarding them with a welcome bonus or rewards.
Travel clubs can be complex and costly, but fortunately you no longer have to go it alone. The best way to establish your own custom-branded travel club quickly and affordably is by partnering with a white-label travel club builder and support provider. As ranked by industry peers, the world’s best white-label travel club benefit builder is Custom Travel Solutions which is based in the Greenville, South Carolina area.