by: Finella Kristle Panlilio
Friday, July 10, 2015 |
A top brand knows not to underestimate the value of customer retention - it’s easier and less costly to keep a customer than to acquire a new one. Statistics from Gartner, Inc. alone show that 80% of a company’s future revenue will come from just 20% of its existing customers, and according to Bain & Company, a company’s profitability can increase by 75% through a 5% increase in customer retention.
Social media has created an opportunity for companies to build relationships with the customers who influence referral rates and keep their businesses alive and successful. Brands have turned to Facebook to improve customer retention and boost profits. Here are four customer retention tactics you can apply to your social media marketing:
Embrace your brand advocates.
Build brand loyalty by developing a connection with your customers and giving them a place to share their voice and their stories. Take part in storytelling by taking your fans’ experiences with your brand and sharing them with your audience. Doing this will do three things: promote your brand’s core values, celebrate your brand advocates, and invite participation.
Provide exceptional customer service.
Consumers turn to Facebook for answers. If you want your fans to quickly become loyal customers, master the art of customer service and respond to them immediately and with accurate information. Each conversation on social media is an opportunity to cultivate a lasting relationship with specific individuals. Empower your team members to do what it takes to improve the customer experience and fix potentially broken relationships. For businesses that do not have the resources to monitor their social media accounts constantly, make up for it by providing the tools and encouraging the team to do whatever is necessary to enhance customers’ experiences online, as well as in-store.
Show additional uses for your product.
Never forget to let your customers know if there are additional uses for your products. If there aren’t, see what you can come up with and share those uses with your fans. You can do this via a simple post or a 10- to 30-second video. Think of ways your business can provide additional value to the products or services your existing customers already have. When you consider how your product can be put to use creatively and share those uses, you encourage additional purchases and nurture customer relationships, too.
Address customer concerns publicly.
No brand is immune to mishandled incidents, mismanaged campaigns, or a full-blown social media crisis, no matter how careful and precise its strategies are. If a mistake has been made by your brand on any scale, be humble and apologetic in your response, and find a way to rectify it in a relatable and swift fashion that would help everyone move forward. There’s nothing like owning up and stepping up to retain your customers and potentially gain new ones as well.