The best consumer retention strategies for quality connections and long-term value
By Team Fetch
September 13, 2023
Consumer retention strategies keep a brand’s existing customers coming back over time. In the long run, an effective customer retention program can be far more cost-effective than trying to recruit new customers. Investing in retention will make customers less likely to switch over to a competitor.
More than that, these strategies encourage return customers to spend more on each purchase, spend more over their lifetimes and spread the word about a brand to friends and family. Rewards platforms like Fetch help increase customer loyalty and retention by incentivizing consumers to return to specific brands over time. But Fetch is just one of many helpful consumer retention strategies for brands to consider.
What is a consumer retention strategy?
A consumer retention strategy is any tactic a brand uses to encourage repeat business from its existing customers. Strategies to increase retention can include common-sense basics: providing exceptional customer service, keeping up the quality of a product or service and engaging actively with your community.
Consumer retention strategies can also be more sophisticated: creating loyalty programs, investing in personalized marketing and tracking data about how much a customer spends in one purchase and over time. A well-developed set of customer retention tools will connect these strategies with other marketing and data tools for maximum impact.
The mix of retention marketing strategies used will vary based on industry and specific business needs.
How to build better customer relationships through retention
Whether simple or systematized, all of these strategies are about building the most valuable relationship possible with a return customer. But they need to go deeper than discounts and gimmicks.
Thoughtfully crafted retention marketing strategies can show customers that a brand understands their needs. Retention marketing strategies can also tap into specific segments of a customer base and help reach shoppers when a product or service can have the most impact.
When a consumer retention strategy is working, repeat customers not only keep spending money with a single brand. They also feel a stronger sense of connection and investment.
Why should brands start a rewards program?
Rewards programs offer customers points or other forms of incentives for buying specific products and spending at specific retailers and restaurants. Consumers can exchange rewards points for gift cards, sweepstakes entries and more from an array of brands. This value exchange encourages loyalty by rewarding consumers for making repeat purchases.
These programs can draw on a variety of customer retention ideas. The point is to create offers and rewards that are most likely to resonate with the buyers a brand or company wants to retain.
Businesses can implement a variety of customer retention ideas depending on the kinds of outcomes they’re seeking:
- Offering buyers a large number of rewards points or targeting them with another specific offer can sway them to add more items to an online cart.
- Access to a robust rewards program can convince newer customers at club retailers to become members.
- A well-tailored customer retention marketing campaign can drive consumers to make more frequent visits to a given retailer.
These approaches demonstrate the value of a flexible, data-driven platform for customer loyalty retention. Simple freebies and discount incentives can create the wrong expectations, and that can backfire as a marketing strategy. A customer who comes back once or twice for a discount will be disappointed when that discount goes away. Instead, try fostering a deeper relationship with that customer.
Sound customer retention strategies take more time and follow-through, but they have a lasting impact. These plans give customers a valuable reason to come back. They also help customers feel more like they’re getting what they seek from a product or service.
Striking the balance
Depending on a business’s industry, target market and development stage, it will need to divide resources a little differently between acquisition and retention.
It’s cheaper to hold onto existing customers than it is to draw in new ones. That’s what makes consumer retention strategies so essential and so valuable in the long run. An existing customer who’s enthusiastic, satisfied, and motivated to return to a brand over time will also be way more likely to recommend that brand to people in their lives. When brands cultivate their loyalty in an authentic way, chances are that the enthusiasm will rub off on a customer’s family and friends. That means a solid customer retention program can also help a brand bring new customers into the fold.
In addition to creating a boosting ROAS, increased retention can also help brands learn how to improve future marketing. Repeat customers tend to provide especially insightful feedback, which proves invaluable when looking to improve a product or service. The insights gleaned about customers’ behavior will also prove more robust and useful if you’ve invested effort into building loyal customer relationships.
Consumer retention strategies have to be able to change along with a brand’s business circumstances and focus. Therefore, it’s important to have a versatile array of tools designed to increase retention.
How to boost customer retention for CPGs
The consumer packaged goods (CPG) industry illustrates the importance of customer loyalty and retention. In an ever-more-competitive marketplace of products that people order by subscription, refills or standing orders, brands need to foster a base of repeat buyers. CPGs need consumer retention strategies to reduce churn.
When there are so many competing options at customers’ fingertips, it’s crucial to make your customers feel a sense of fulfillment and belonging.
How to improve diner retention for restaurants
Restaurants can use personalized offers and campaigns to build excitement about new menu items and to encourage repeat visits. Today’s customers expect access to a variety of cuisines and experiences. Restaurant brands with strong consumer retention strategies can make those experiences more rewarding and engaging.
How to elevate shopper retention for retailers
In the retail world, brands develop consumer retention strategies to drive a variety of desired outcomes: More frequent shopping trips, a higher spend per order, membership signups and more. Whether promoting seasonal offerings or nudging customers to try in-house product lines, retailers can turn well-developed customer loyalty into a powerful asset.
Hone your customer retention strategy with Fetch
While there are many customer retention strategy options, Fetch is among the most powerful platforms for brands to keep shoppers coming back. With powerful customer retention tools and a proven track record of successful customer acquisition, Fetch can help brands balance the priorities of marketing to new and repeat customers.
Here are some examples of how Fetch helped beloved brands keep customers coming back:
- Famous Amos worked with Fetch to connect with shoppers during back-to-school season.
- Ticonderoga pencils boosted loyalty among parents, students and teachers during a critical sales period.
- Liquid death tapped into Fetch’s next-gen digital marketing to maintain shopper loyalty.
Plus, Fetch’s success at improving its already excellent user engagement makes it a powerful tool for increasing retention and building long-term relationships with customers in a competitive market.
Ready to improve your brand’s customer retention strategy? Get in touch with the Fetch for Business team today.
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