With the internet being the focal point of every growing business nowadays, organizations have started to devise new strategies to retain and grow their online customer base.
One of the strongest suites of any business is to follow specific methodologies to hold on to their existing customer base. Rather than just jumping ships every now and then and finding new customers, businesses now are more driven by retaining the existing ones first.
As per a report by Harvard Business School Working Knowledge, a 5% increase in the customer retention rate could potentially lead to a 75% increase in the customer lifetime value for a business.
This is true for small businesses and start-ups as well.
Even if you are a small business, your existing customers could significantly impact your sales since the ones that are familiar with your company are more likely to buy from you again than explore other options.
Despite the modern tech and tools, business owners could still find it hard to devise new methods to acquire new customers and retain them.
The importance of the customer base is pretty significant, and we are here to tell you exactly how it's done.
By definition, your customer base involves the people that repeatedly interact/buy from you.
Your existing customers provide the most financial value to your company.
These recurring customers are the strongest selling points for your business since they have already bought from you and know exactly what to expect when they buy from you in the future as well.
With tools such as Google Analytics, it's easy to understand where your audience is coming from and what your key demographics are. However, to get a more detailed approach, you need to define what your ideal customer looks like clearly.
You can start by putting forward questions such as:
Getting answers to these questions gives you a lot of insights into who could be included in your customer base. This ultimately helps you channel your marketing campaigns to the right audience, and most importantly, help you understand your audience and the buyer persona better.
An installed base includes the group of customers (among your existing customers) that actively use your products.
These customers regularly buy from you, provide you feedback, and keep an open spot for any business activities you conduct.
Unlike the customer base, an installed base excludes the people who haven't recently purchased or engaged with your business's activities.
The fundamental of a business, large or small, is to grow its customer base since that's one of the most significant ways of generating recurring revenue. So if you have ever wondered how to get more customers, this section has the right answers for you.
For a business to scale, customer growth is the most valuable. While getting new people to buy your product for the first time is easy, getting the same people to buy from you again takes effort and strategy.
With the introduction of new offers, a great customer support system, enhancing customer experience, and most importantly, quality of the product, a business of any size would be able to build its loyal customer base in a small period of time.
Here are the 5 strategies that businesses of any size and type can use to grow and sustain their customer base.
1. Take feedback from existing customers
If you are an avid user of Zomato, you’d know that they ask for customer feedback after every delivery. In fact, they would send you feedback forms in your mailbox to collect your experience.
Collecting customer feedback is a strong customer retention method that most successful businesses have adopted. Seeking customer feedback allows the customers to voice their opinion and vent their queries.
Since small businesses fret about experimenting with new techniques, it would help them get a headstart to retain their customers from the very beginning.
As you regularly ask them for feedback, you potentially include your customers into a community of active users. The fact that your customers can voice their opinions when they want and individually review every purchase they make from you, develops a feeling of liberty among them.
People love to express themselves and belong to a community of like-minds. You can practically adhere to countless methods of collecting customer feedback. This includes:
Irrespective of you setting a proper customer feedback collection mechanism, your customers will still have opinions about your products and always share feedback. Rather than forcing your customers to approach other channels, you can set up your own proper page for collecting customer feedback.
2. Provide ultimate support leveraging customer service tools
As your customer base starts to grow, you have a lot of people to deal with. While hiring a large team would help, more than that, the use of customer service tools helps the most.
For a lot of business owners, this route may seem undesirable due to the increased costs and time consumed to integrate these services into your platform. However, once the hard part is dealt with, it's relatively easy to manage a huge customer base because of the automation involved.
Tools like Help Desk could equip you with a variety of useful customer service tools. The ideal tools could include:
Such tools automatically organize and distribute the incoming service requests, making it easier to work on customer queries.
Instead of finding customer cases in the database, customer service tools allow you to provide personalized answers and deal with more cases every day.
3. Try to Provide Fresh, Relevant, and Quality Content
Internet users are craving for new content and constantly prefer visiting the sites and forums that discuss the new updates in their industries of interest.
This means that if you want to fall into the category of such sites that have a great number of visitors, you have to offer something very specific: Fresh, Relevant, and Quality content.
Quality and relevancy are the primary customer-driving factors. The more happening your content is, the more visitors it is going to pull in. Businesses that push fresh, qualitative, and relevant content have more authority. Not just for the search engines, but for the people as well.
When your content page is updated with new material every now and then, not only are more users driven by it, but it also puts you in the good graces of search engines, where you practically rank among the top sites in the SERPs.
Producing new sections for your blog page would help as well. Try building a team of people that can help you produce quality content on the latest business news, key-takeaways, and trending topics belonging to your industry.
4. Creating a Customer Success Program
The most distinct quality of a successful business is that not only does it identify its recurring customer, but it also values them the most.
Suppose you're able to convince people to buy from you over and over. In that case, your customer base will have constant additions, providing you the ultimate feat of developing your very own loyal customer base.
One of the most effective tools for this purpose is a customer success program. These programs consist of teams that analyze individual accounts and try to eliminate any future problems a customer might run into.
While these problems aren't so evident at the moment, they could cause serious repercussions in the future for the business as a customer finds it hard to navigate around such problems.
Nipping the problem in the bud from the very beginning is one of the best ways of retaining your customers.
5. Optimize your Customer Loyalty Program
We have come a long way from having loyalty programs for businesses. From the use of discount codes to membership cards, businesses have tried their best to retain and grow their customers.
However, since the last decade, the internet has had a significant impact on the working methods of a business. Businesses have come up with their own methods of customer loyalty programs and have basically redefined them.
A typical example of this loyalty program includes the Prime Membership of Amazon.
Not only is this program a brilliant method of getting people to enter your customer base, but it also redefines the customer loyalty program, since they are entering an elite membership where they get these countless benefits from a single membership.
On the other hand, YouTube also introduced the channel membership system, which allows people to enter tier levels, where each level has its exclusive benefits.
The provision of membership programs and tiers encourages the customers to interact with your business continuously. This creates a sense of community and belonging, ultimately helping you build a customer base.
While your business could run on just the new customers for a while, you should know that your existing customer base is basically the fuel that runs your entire business.
It's very crucial to identify who is included in your customer base since they have a lot of value for your business. Not only do they buy your products frequently, but they also engage in all your business activities.
Depending on your industry, your customer base could involve people from different age groups, locations, and interests. It's important to identify them in your target audience, contributing to the importance of customer base in your business.
Recognizing such customers has a significant impact on your marketing, sales, and most importantly, build a productive relationship with your customer base. Therefore, while looking to increase customer base, it is also imperative to focus on customer retention.
We hope these tips help you increase your customer base significantly. To learn more insights from customer experience about how to bring about customer growth, stay tuned to this space.
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