For many small and medium enterprises (SME), customer acquisition seems to be a more enticing expansion strategy. The idea at play here is that the more buyers they have, the bigger their potential for long-term success. However, this can cause brand managers to lose sight of their existing customers to the point that customer retention is totally left out of the marketing process.
If you examine your existing pool of customers, you’ll find that many of them present a more significant value for your firm than new customers who are just beginning to warm up to your brand. Encouraging these high-value customers to stay requires continuous relationship building. The gravest mistake that brands can do is stop marketing to the people who are already part of the company’s journey.
To help you get re-acquainted with them, here are the four types of high-value customers and some tips to help you cultivate better relationships with them.
1. The big spender
For as long as we all can remember, big spenders have always been among the most highly valued customers. Price isn’t an issue to them, and they always want to get their hands on the best products no matter how much they cost. But how can you get them to make a second purchase?
The customer retention strategy for big spenders is to keep releasing products that are consistently high-caliber and unmatched. Unfortunately, discounts or promo coupons won’t appeal that much to them. You can nudge them to return to your brand by throwing in personalized services to make them feel extra special.
2. The word-of-mouth (WOM) marketer
Also called the influencer, the WOM marketer is one of your most important assets. They generously tell friends and family about your brand, products, and services. As a result, you’ll find new customers crowding your doorstep. The fortunate bit here is that all this wouldn’t require grandiose marketing efforts on your part.
You can discover who your WOM marketers are by asking new customers where they’ve heard about you. Take a step further by directly reaching out to your brand influencers and rewarding them with freebies or giveaways.
3. The fully connected consumer
The fully connected consumer follows you on every social media platform you have. They’re fully informed about the latest news, upcoming events, and other important info surrounding your brand. If your content is interesting enough, they’re the first ones to share it with their friends online, thus giving the extra push your company’s online marketing direly needs.
In other words, these consumers are your online WOM marketers. As a customer retention tactic, simple perks such as freebies, discounts, and other special offers ought to do the trick.
4. The loyal customer
The loyal customer has seen your brand in all its forms, through all its ups and downs, its mishaps and successes, and yet they still remain by your side. Their loyalty is hinged not upon the quality of your products and services, although those factors do play a part. Rather, these customers believe in your mission and principles as an organization. As such, the best customer retention strategy is to give them a voice and make their insights part of your expansion strategies.