10 Tips to Improve Customer Retention

5 Reasons Why You Should Start Your Dream Online Business in 2017

This post was written by Otis Ramsey.

The customer retention rate is how well a business can keep its paying customers loyal over a period of time. CRR is a very important thing for businesses to pay attention to when they want to increase their bottom line.

A study from Harvard Business School revealed that even a 5 percent increase in CRR can increase profits at least 25 percent.

Here are ten ways to help improve your customer retention rate.

1. Show Your Values.

Customers are more likely to support businesses that share the same values as they do. So, make your company stand for something and have it be known for that.

TOMS Shoes is known for giving a pair of shoes to a person in need for every pair bought. Making that part of their brand has helped them grow and thrive in the competitive apparel industry.

Adopt a cause near and dear to your company’s heart and incorporate it into your brand. People will see you as a force for good instead of a soulless business and they will feel better about buying your products.

2. Educate Your Customers.

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Write articles or make video tutorials educating people in your niche.

If you are in the apparel industry, you can talk about how your customers could dress to best show off their body. If you sell cookware, you can share recipes or cooking tutorials.

Not only do these help your customer, but it drives traffic to your website and gives you a good chance to show off your products. It also builds trust with your customers, which turns into loyalty.

Consider making a resource page that customers will visit over and over.

3. Give Thank You Notes.

Gestures of appreciation go a long way towards helping you build a relationship with your customers.

A simple thank-you note or thank-you email can leave a good impression of you in the customer’s mind, especially if they are not expecting it. The note does not have to be fancy or long, but it should be heartfelt and well presented.

4. Provide Fast Customer Service.

Many companies think their customer service must always provide exemplary results to be considered good customer service. But that is not the case.

Most customers would prefer problems resolved quickly and with very little effort on their part, even if the results are not as fantastic as they could have been with more time.

Instead of working on quality, work on speed for customer service.

5. Choose the Right Platform for Customer Service.

What works for one company does not always work for another.

Some companies can resolve everything through email support. Web hosting companies must have live chat for when their websites go down or there are problems with their websites.

Some companies store payment information, like Amazon or Uber, where purchases can be made with one click and without manually entering card numbers. Then it is vital you have a phone customer service with real people on the line.

If one of your customers thinks their account was hacked and their payment information is at risk and they cannot talk to a real person immediately, they will feel ignored and terrified at the possibility of identity theft. Even if you eventually resolve the matter and no money was taken out of their account, they will never trust you again. After that they’ll make it a point to use one of your competitors in the future. And will tell everyone they know about their unpleasant experience.

6. Have an Incentive or Loyalty Program.

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This one is a no-brainer. Providing to people a direct incentive to choose you over another business automatically increases customer retention rate.

It does not have to be a free coffee after ten purchased cups of coffee, though. Target has a good loyalty program with their RED Card, which is synced to the customer’s checking account. They get five percent off their purchase by using their RED Card instead of their debit card.

Harris Teeter offers significant survey rewards that improves their customer retention.

7. Get Customers Started on the Loyalty Program.

If you have a loyalty program that includes a rewards program, then automatically enroll people into them to make it as effortless as possible.

If you have a rewards card, activate it as soon as the person gets it so they can use it immediately. If everything is done online, automatically put people into the rewards program as soon as they create an account on your website.

8. Label the Customers.

Everyone loves feeling important and rising through the ranks.

Have different levels of customers like bronze, silver, and gold customers and have different benefits for each. This could be discounts, exclusive offers, and freebies. Display the customer’s rank prominently on their online account and show what they need to do to move up to the next rank.

9. Make Purchasing Easy.

The more steps there are in the purchasing process, the more opportunities for the customer to decide they did not want the product after all.

That is why Amazon’s One-Click Buy method works so well. Make everything go as easily and painlessly as possible.

10. Do Not Spam.

Ever been in a department store where you spend twenty minutes checking out because the cashier is required to pitch you five different offers before you walk out the door? When that happens, do you ever buy there again? Probably not because it is basically the in-person version of spam mail.

Spam, in person or online, makes customers feel harassed and exploited and they will run from you if you do it.

Now that you know more about customer retention rate, how can you provide them with a better experience?

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How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money

How This Family Guy Makes $10,000/Month Online Teaching Others How to Make, Save and Invest Money - Interview with R.J. Weiss from TheWaystoWealth.com

This is an interview-style post with R.J. Weiss from The Ways to Wealth.

Hey R.J. What’s your background and what do you do?

I blog about all things personal finance at The Ways to Wealth.

Before I went full-time into blogging, I spent ten years in the financial services industry. Specifically, helping families buy the right type of life insurance.

During my time with a full-time job, I’ve always had different side hustles going on. From freelance writing, Amazon FBA, conversion rate optimization, to website design — there were many projects I pursued outside of work.

How did you start your career in finance?

I got started in finance straight out of college working for my the family insurance business. As I love the financial planning side of things, I choose to specialize in life insurance planning. This led me down the path to obtaining the CFP® Certification.

What made you start blogging?

The Ways to Wealth, which I started in 2016, has been my 5th blog.

The others mostly fizzled out most due to a lack of interest. But, in 2009 I started a personal finance blog called GenYWealth.com (no longer around) that had some success.

The idea GenYwealth.com was to write about what I was learning about studying to take the CFP®. The blog was, by all means, a success. I was able to gain valuable knowledge, pass the CFP® exam, earn some extra money and build up a good community.

I then took this knowledge and started a business blog, which allowed the insurance agency I was working for to generate leads.

I started The Ways to Wealth because my passion is personal finance–from investing to travel hacking, I love the challenge of optimizing my finances.

How was The Ways to Wealth born?

I didn’t have much of a plan for starting The Ways to Wealth when I purchased the domain name.

I was actually thinking it would be a niche site, which was inspired by Pat Flynn’s niche site duel. Then, I came across the income reports of Michelle Schroeder-Gardner and wisely changed direction to a more traditional blog.

This change came about 6-months after starting to blog.  I did a timeline of the site in one of my income reports.

What worked best when trying to grow the site?

I had a decent knowledge of SEO. So at first, I started growing the site with email outreach. One of the first posts I had about best investing books of all time, had about 15 links to it.

This was nice to start with but was quite slow to build up, as it can take a while to earn Google’s trust.

The big turning point came when I started to understand Pinterest. I spent a few frustrating weeks on the platform, then it finally started paying dividends.

I went from about 100 sessions a day to 1,000, which was huge for me at the time.

How did you get to 3 million monthly viewers on Pinterest?

the ways to wealth pinterest 3 million monthly views

I lay out my Pinterest strategy here. But at the core the idea is to:

1) Write high-quality content that Pinners want to click through, read, and share.

2) Pin to my own and high-quality group boards, with a keyword-rich description.

3) Continue to Pin my best pins across my own boards/group boards, ruthlessly eliminating Pins that don’t perform well.

One thing to keep in mind is impressions don’t mean much on Pinterest. What counts are clicks to your website. So, you want to design not for impressions but clicks.

What aspects of the online business are you outsourcing or automating and how?

The first thing I outsourced was Pinterest design. I’ll design about 30-40 pins a month, so this was big time saver for me.

Of course, it took some work to get going. At first, I hired 5 or so people on Fiverr. I found one decent designer but the work quality deteriorated over time.

I then went to Upwork and posted a job for a  graphic designer. I found a great team down in Argentina, who I’m very happy with.

I’m currently experimenting with working with a ghostwriter. A few of my latest posts have been transcribed from my recording, with the ghostwriter making sense of it all.

I can compile about 3 posts in 90 minutes, then take another 90 or so minutes to prepare them. Saving me around 3-4 hours per post this way.

What’s your main income stream and why do you think it works for you?

My main source of income for the blog is affiliate revenue. It works because the partners I do have are high-quality businesses, who deliver value and solve real problems. This makes it easy to naturally link to such a partner.

When did you start making more than $10K/month and what was the turning point?

My first month over $10K was in January of 2018. In December of 2017, income was around $3,000 and in July of 2017 around $500. So, it was definitely a jump.

What happened then in January?

First, personal finance is at its peak interest in January.

Second, I had multiple Pins go viral.

Third, in November I started driving traffic via Facebook to the site. So, in January I could take campaigns I’d been fine-tuning for a few weeks and scale them.

How do you balance work and family life?

I have a routine I stick to Monday through Friday.

When inside of my designated working hours, I work. When outside of these hours, I’m not.

This is a lot easier said than done. But the thing important for me is not to take work everywhere I go. This means I don’t have any apps on my phone that are work-related (email, analytics, etc..)

What are you 3 best finance tips for newbies?

  • Focus on your savings rate. How much you save is the most important decision you’ll make.
  • Small incremental improvements add up over time. My favorite example is increasing your savings rate 1% every quarter, means you’ll be saving 20% of your income in just 5 years.
  • Study happiness. Become a student on how to increase your level of happiness. The natural result is you’ll want less overtime, making the game of personal finance a lot easier to win.

What books, blogs or podcasts help you stay motivated along the way of growing an online business?

I read a fair amount to keep fresh ideas in my head.

My favorite podcast is The Tim Ferriss Show.

Two blogs I enjoy reading are:

Farnam Street
Barking up the Wrong Tree

And as far as books. I try to read one a week. A few books I would recommend to online entrepreneurs would be:

Deep Work by Cal Newport
The Compound Effect by Darren Hardy
The Four Hour Work Week by Tim Ferriss

Pin this post if you enjoyed the interview.

Check out my interview with R.J. from TheWaystoWealth to see how he entered the finance niche, started making money blogging, began bringing traffic from Pinterest and monetizing it with affiliate marketing, and is now making $10,000/month from his online business. #blogger #interview #blogtraffic #incomeideas #income