Using Social Media as a Way to Increase Customer Retention
For your business to grow, you need to attract prospects, nurture them, and have them avail your products and services. You want to make sure your customer finds the satisfaction they’re looking for because the more customers you keep, the higher your revenue will be. This is why it essential that you increase customer retention.
However, business owners and marketers tend to focus more on attracting more customers and nurturing them until they become sales ready. Putting customer retention aside, when in fact, the White House Office of Consumer Affairs has pointed out that bringing in new customers costs more than nurturing the existing ones, just a few years ago.
This does not mean you should stop seeking new customers— what I mean to say, is you should spend some time in nurturing your current ones. Start building relationships with your customers. Reach out to them and find out what they want, give them discounts and rewards—something that could make them feel special.
One way of reaching your current customers is through Social Media. Nowadays, most people have at least one account in one or two social media platforms.
2 Ways to Use Social Media to Improve Customer Retention
1. Responding to the Customer’s Concern Right Away
Most of the time, customers leave because they find the customer service slow and somewhat quite an unpleasant experience. When this happens, some of them will complain in your comments and review section, or worst, post their unpleasant experience on social media which will be a bad thing for you and your business.
One way of dodging this negative publicity is to have fast customer service. If your Customer Service responds right away to your customer’s problems and concerns, your customer will feel happy and satisfied.
Social Media can be an excellent way of reaching your customers, and them reaching out to you quickly.
2. Implementing Tiered Loyalty Program
You can give your customers a slight push towards a specific goal by giving them rewards upon achieving the goal.
Let’s say you sell bags and your goal is to sell three bags for each customer, so you put up two loyalty programs on social media.
The first program gives a free coin purse after purchasing a total of three bags. The second program requires your customer to buy four bags before they could have that free coin purse. However, your customer’s first purchase will be credited to a total of 2 purchase of bags.
The possibility of the second loyalty program gaining more purchases is higher than the first loyalty program. Although both programs call for your customer to buy a total of three bags, because you gave your customer a *slight push on the second program, your second program may work better rather than the first one.
This called the Endowed Progress Theory, where you give your customers a slight push to motivate them to achieve your goal.
Why am I saying this? As I have said earlier, most people spend their time scrolling over their social media. Your customers will see your program on their social media accounts, with the Endowed Progress Theory, reaching your goal is a lot faster.
There are a lot of marketing automation tools which can help you establish your business on Social Media Platforms where your customers can connect with you faster.
To wrap it all up, using Social Media in your marketing campaigns, can work as a double-edged sword. With proper utilisation, it may work well with you, but with haphazard efforts, it may hurt your business in return. The choice is yours.