“The more you show gratitude to your customers, the more you retain your customers”.
Modern businesses are leveraging digital marketing techniques to retain and bring new customers to their business. Today, the food delivery business is gaining huge momentum as it ensures maximum profitability and offers comfort to the customers. This is why more and more food business owners are investing their time and money into developing online delivery apps.
Today, most businesses are heavily dependent on repeat customers as just offering quality services to the first customer is not a plausible idea.
As per HubSpot, it’s seven times more economical to retain a current customer than it is to bring a new one. If your delivery business has a high customer retention rate, it means your business is growing and will give you the desired outcomes.
Moreover, research conducted by Fred Reichheld of Bain and Company admits that increasing customer retention rate by 5 % boosts your delivery business profit by 35% to 95%.
Thus, it is true for many entrepreneurs in this competitive business arena where clicks and running ads campaigns seem to be increasing cost. In this blog post, we will understand the meaning of customer retention rate and best practices to boost retention across the board. So without any fuss, let’s get started.
What Is Customer Retention
No matter whether you are new to the online delivery business or running a well-established business, your core focus is always on profit and growth. The term “growth” here means the acquisition of more customers that can boost the revenue of your delivery business.
Customer retention means the act of keeping existing customers happy and satisfied who repeatedly order from you since they had been converted for the first time.
This is not a one-time process; it is a continuous process that goes through different channels of marketing such as social media, email marketing, and SMS to foster customer loyalty for as long as possible. However, it is very difficult to retain a customer for a long period.
Some marketers focus too much on bringing new customers that they forget to entertain existing customers happily by delivering a seamless customer experience. Moreover, if you treat current customers wisely, they will spread positive words about your business.
Surprising Customer Retention Statistics You Should Know
Customer retention increases your profitability and keeps your business afloat during challenging times. It also lets you build fantastic relationships with your customers. It means they will not switch to any other website or app; they trust you and are willing to do business with you because you give them value in exchange.
Let’s go through certain statistics that help you understand why customer retention strategy is important for your delivery business.
The above image clearly displays that customers stop doing business with you because they feel you don’t care about them and fulfill their requirements. (source)
- Customer acquisition cost you five times more than customer retention
- More than 65% of customers abandon a brand because of a lack of effective customer retention strategy.
- According to Forbes, 80% of your profits comes from 20% of customers
- Businesses lost $75 billion in revenue due to poor customer service
Now, let’s look into the strategies to increase the customer retention ratio.
# Personalization is Key
Personalization is another effective technique that improves customer retention rate.
If you truly care about customers- express it.
And if you really want them to stay engaged and come back to your brand again and again- get personal.
A business’s success depends on the ability to offer a unique and personalized journey for the customers. According to a report from Salesforce, 76% of consumers are willing to share information about themselves for personalized interactions in which they are offered a personalized experience.
Thus, leveraging the CRM system and integrating it with food delivery app development helps them to identify the potential customers of their business and let them know which consumer they need to prioritize. For instance, create a subject line addressing their name or nickname. There are chances that they will pay more attention when they see the name in the subject line.
Use customer’ information wisely so that you can personalize your communication in the future and take it to the next level.
# Exceptional Customer Support
Quality customer service is one of the best ways to reduce customer churn rate, increase customer retention rate, and to save your efforts and money in convincing customers to stay in touch with you. Offering world-class customer service is the most obvious strategy to increase the customer retention ratio.
This is how you can always stay ahead in the competition. You should have an open line 24/7 to hear customer’s queries and provide them with quick solutions related to your products and service. Instant customer support means satisfying your client’s needs by listening to them on social media and making them your evangelist by assisting them round the clock.
This is why many brands and companies leverage live chat options as it offers speedy solutions, gathers information about a customer, engages online visitors, and collects user’s feedback. No doubt, in-house customer representatives are useful, but they can’t be there round the clock for your customers.
# Offer Incentives
The more you know precise details about your consumers, the better you can offer them incentives to each individual based on their preferences. Incentives or loyalty programs come in many shapes such as discounts, giveaways, free delivery, exposures, and much more. And these all are a great way to increase customer retention ratio.
At the end of the day, a customer chooses the brand that offers quality products or services at cost-effective rates, and this could be only possible by offering them incentives. It would help if you build trust, good communication, and sometimes have to offer free gifts and delivery to keep them engaged and connected with your business.
As per eMarketer’s recent report, we can notice that after easy and smooth checkout, incentives and loyalty programs are the second things that keep consumers coming back. At the same time, more than 75% of consumers are more likely to recommend brands offering attractive loyalty programs. (source)
Hence, offering incentives to your loyal customers helps you kill two birds with a single stone, you grow your customer retention rate, and create a solid customer base that eventually boosts sales and profit.
The Bottom Line
Overall, a solid customer base is the backbone of your business success. Without them, you would not generate sales, drive traffic to your app or website, or grow your business. The only way to increase your customer retention rate is to offer them excellent customer service, delight them, and address their pain points.
This practice will always give you an advantage, and all your hard work will pay off in the long run.
Author bio
Deep Moteria
Deep is a serial entrepreneur and blogger who wishes to support the ground transportation industries with his writings.
He covers up all the known and unknown facts around the industry and puts it together to create trending articles across different websites.
He also includes details on the latest trends, fun facts, business expectations, strategies, and models to follow to achieve success in the transportation sector.
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