There’s an old proverb that goes, “A bird in the hand is worth two in the bush,” and that couldn’t be more true than when applied to customer retention. Acquiring new customers can cost a business five times more than retaining current customers.
Plus, the average loyal customer is worth approximately 10 times as much as their first purchase. Think about your company’s average sale per transaction and multiply it by 10 to understand how important a strong retention strategy is to your company.
Customers choose to stick with a brand for a number of reasons which could include friendly, knowledgeable employees, unique or personalized services, strong customer support, and positive brand reputation. Once you’ve got the basics down, you can begin to build a richer experience that will take your customer retention rates to new heights.
Red Bull and GoPro are two of the best out there in creating online experiences that keep their customers satisfied and coming back to their sites. Let’s look at what they’re doing to build customer retention.
Make It Unique
Red Bull is synonymous with high octane stunts and insane adventure sports, so it should be no surprise that the company developed a racing game that replicates its real life air race events. Red Bull Air Race: The Game takes users into the sky in a fast paced fight for first place. The website also has a community forum where users can talk about their in-game experiences or off-topic subject matter. The game website is a wonderful example of a brand valuing user experience over anything else.
For a small scale example, we need to look no further than GoPro. Fans of the brand can pick up free stickers on the website – no GoPro required. An article in the Journal of Marketing found that people who received a freebie talked about it 20% more than if they paid for it. Discounts, giveaways, and free swag are simple yet effective strategies to build brand loyalty and improve customer retention.
The Takeaway: Give your users a reason to interact with and love your brand. Start a weekly discussion on your community forum, add new content regularly, or host a monthly giveaway.
Be There and Be Consistent
Approximately 65% of shoppers are frustrated by inconsistent experiences across channels, according to research by CustomersThatStick. Customers want to know how to access assistance when they need it most. GoPro offers a number of ways for customers to get in touch including email, phone, chat, and forum support.
The community forum empowers users to answer questions and help out their fellow GoPro fan. The community also has an amazing code of conduct that put community growth in the hands of both the community manager and users:
“For every question you ask of the community, take the time to give a little back. Hi-5 a post, make a comment, add tags, or invite an enthusiast to become a member. These are key components to growing a dynamic and productive community.”
The Takeaway: It’s time to collaborate with your customers. Use your community forum as a place to learn about their needs and wants. Find out how you can better serve them – and do it.
Build a Moment Bigger Than Your Brand
The GoPro Channel was launched in late August on Red Bull TV. This new online channel will feature video clips from some of Red Bull’s best adventure athletes including surfers, bikers, snowboarders and skateboarders. This channel is a natural extension of the GoPro brand and allows viewers to see all the potential their GoPro has to offer.
Alternatively, Red Bull’s Selfie Run app is the brands attempt to build a community where personal relationships are forged and user are encouraged to get together in the real world. The app allows users from around the globe to participate in the brand’s Wings for Life World Run that takes place on May 7, 2017.
Even if a customer can’t make it to one of the run locations, the app helps them find friends to run with, lets them share their training sessions, and shows where they rank on the global list. With 68% of customer defections happening because customers sense an “attitude of indifference,” big ideas like this will show your brand cares about their community.