Growth Hacking: Fuel To Your Retention Efforts
We will look at a few such growth hacking techniques that can fuel your retention efforts and keep attrition at a minimum.
Customer churn is the ultimate marketing evil. It doesn’t matter how rapid your top-line growth is, the pesky churn rate always manages to find a way to disrupt marketing flourish.
Churn happens when customers don’t retain the continued subscription of your product, and the revenue from each customer keeps drying up until they don’t come back to you.
So, what do you do to secure their patronage again?
You use growth hacking.
As a hacking wizard, your principal objective is to make customers feel emotionally connected to you so that they keep coming back for more. Like anything else in marketing, it is a skill that, when done right, can optimize retention efforts and keep customer churn at a low.
How do you hack retention then?
It’s the 21st century, and marketers have incredible tools at their disposal that allow them to interact with customers on a large scale. Here, we will look at a few such growth hacking techniques that can fuel your retention efforts and keep attrition at a minimum.
1. Initiate Email Drip Campaigns
More businesses than ever before are prioritizing customer retention over acquisition today after knowing that sales efforts see a high success rate of 60–70% when selling to existing customers, highlighting the importance of customer retention. And email marketing is, by far, the best medium to do it.
When done right, email marketing can help you:
- Re-engage customers
- Help them derive the most value out of your product
- Emphasize their value to your business
When it comes to an effective growth hack for customer retention, email drip campaigns reign supreme to both find leads and facilitate conversions, with a through-the-roof RoI of 122%.
To begin with, email drip campaigns for customer retention, focus on building an email list first. After building your list, move on to creating a calendar of customer retention emails that will be triggered by specific customer behaviors and events. You can opt for an email marketing tool like MailChimp to set up email lists because they allow you to push emails more effectively.
Pay particular thought to how you craft your retention email. It must display that you have a deep knowledge of your customer, their pain points, and a desire to promote their continued success. It will also bid you well if you personalize your email marketing by:
- Introduce yourself by name and company
- Address customers by their names in the subject line
- Leverage information derived from their browsing or shopping history in the body of the email
For example, take a look at how Thrive Themes personalized their emails and address the customer in great personal detail.
Your retention emails must reflect deep care for the customer by showing that you have taken the time to understand their needs and that you are whole-heartedly invested in their success. Doing this will enable the acquisition of potential customers and even build a positive brand image in the minds of the customers.
2. Employ Chatbots for a Personalized Experience
In the on-demand digital economy of today, customer expectations are at their highest. With a fabulously rising demand for immediate and effective solutions looking to keep peaking indefinitely, companies are increasingly turning to chatbots with Gartner predicting that 25% of organizations will be using them to provide personalized customer experience by the end of this year.
Implementing a chatbot can help you massively boost retention by appeasing customer demands by standing in for customer service representatives and providing continued customer experience even at odd hours. You can also utilize them to conduct surveys to accurately determine your ideal buyer persona by asking questions related to their age, demographics, and interests.
This will help you secure retention by pushing and featuring products at different touchpoints that are relevant to a customer’s browsing history and shopping preferences so that they keep coming back to do business with you in the future as well.
Furthermore, you can prime your chatbot to introduce a hint of personalization to boost your retention efforts by helping users relate to your services even more gravely. For brands with a global audience, an apposite way to personalize their chatbots can be to integrate language preferences so that customers are at ease while talking about their queries.
Yet another way to promote personalization is to ensure that the chatbot is sophisticated enough to decipher the intent behind the customer’s visit. Offer Factor’s chatbot is a great example of this. It asks customers to provide their email address and their name before initiating a chat. This allows for a much more personalized experience rather than standard addressing.
3. Request For Feedback Through Surveys
Individualization is the very nature of customer retention, and it varies according to the kind of service or product, the types and numbers of customers served, the frequency and longevity of brand-customer interactions, and how you plan to grow your business.
Feedback surveys are a hugely useful tool to measure and keep retention efforts on track. There are many feedback surveys you can implement, but there are three approaches in particular that help you produce the most relevant and meaningful findings.
- Post-purchase evaluation: This feedback is requested by the customer during the service or product delivery or just shortly after. It is typically employed as part of a CRM Retention System and is focused on engaging the customer for the long-term.
- Periodic satisfaction surveys: This type of satisfaction feedback is obtained from customer groups at periodic intervals to gain an accurate picture of customer experiences and their expectations. It usually monitors the general health of the company and its products.
- Continuous satisfaction tracking: This kind of satisfaction feedback is asked from the customer at the time of the service or product delivery and then periodically thenceforth. It provides customer retention scores based on which certain accounts can be flagged for a management tracking tool to assure that the service quality is always high.
Feedback surveys provide a deep understanding of the customer’s experience and satisfaction levels. Customer retention surveys centered around service concerns, competitiveness evaluation, and marketing (advertising campaigns, benefits, and features) analysis will help you peel away service layers so that you can redefine them to present incentives and resolve problems.
This will help you improve retention rates through service anticipations, development of customer issue resolutions, and continued analysis of the degree of success.
4. Invest in Referral Marketing
Ask any business, and they will tell you that referrals are the wind beneath their wings of growth. Not only a free marketing medium, but it also piques prospect interest in your offerings as a consequence of it being suggested by someone they trust.
By investing in referral marketing, businesses can convert a lead quicker than by other means. Referrals from family members, friends, and influencers create a positive impact in people’s minds of your product. Not to mention that the CPA of referral customers is less, and it also allows you to cut down on your costs.
In fact, customers won over through referral marketing have slightly better retention rates that amount to a 16% higher LTV. Furthermore, customers acquired through referral programs have a 37% higher retention rate.
Build a referral program by creating a system that encourages your customers regularly and use referral marketing to increase brand awareness and reach.
Uber is a great example of referral marketing done right. They created a system where customers would get $5 credit each time another customer used their referral code. This idea grew to be successful that it has been replicated in some form or the other by many ride-sharing apps since.
5. Leverage AI to Perform Predictive Analytics
Did you know that it costs businesses much less to keep an existing customer than acquiring a new one? In fact, it costs 5–25 times more to gain new customers than retain the existing ones.
Being able to predict when customers could defect can make or break your business. The deeper your insight into customer preferences are, the more novel and effective retention strategy you can build to keep them on.
AI-powered predictive analytics can help you survey the purchase intent of existing customers and show you which customers are at the risk of attrition so that you can target them.
By monitoring historical consumer data, you can be alerted of when a customer shows a high defection intent. Tracking customer at risk of attrition with the help of their buying patterns and ongoing behavior will tell you what you need to know so that you can alert your marketing team to secure accounts that are showing inactivity. You can then formulate a response based on it to reduce your churn rate.
Valpak, a North American direct marketing company, was facing consumer attrition and identified an opportunity to boost retention using information gained from historical customer data. However, they were unsure if their data could forecast which customers would leave and why.
This was when they leveraged predictive analytics discovery for evaluating data, analyzing data quality, and providing a proof of concept (PoC) that analyzed the viability of a particular business use case. With this, the Valpak team was able to predict when customers were at the most risk of leaving and why and were able to tighten their retention efforts to secure their continued patronage.
Hacking retention is always a challenge for businesses new or old. The real kicker here is that one’s target audience and the market isn’t subjected to inventive marketing campaigns on a regular basis.
Moreover, in a landscape where competition is as rife as it is today, hacking retention is a tough task.
However, this is where the aforementioned tips and tricks can come to your aid and add fuel to your retention efforts and help you grow your business.
Keep in mind that it won’t do you any harm to try out new things as long as you know the pulse of your business and your customers while also focusing on deploying tried-and-tested growth hacks instead of novel hacks just for the sake of it. You will find that there is no single hack that will resolve all your issues and it will take trying out and refining your growth hacking retention strategies as you work them out to see which one brings you the best results.