6 Strategies to Retain Customers Using Animated Videos
Maybe you've heard that it's less expensive to retain existing customers than it is to acquire new customers. But did you know it can 5 times MORE EXPENSIVE to gain new customers?
Furthermore, increasing customer retention rates by 5% increases profits by 25% to 95%. This is why creating an excellent customer experience is so important.
Now, a story...
When I was a marketing director I had to rely on staff that were not my direct reports to carry out customer service. I was often reassured by their bosses that the staff was fully informed and trained on how to deal with our marketing promotions.
If memory serves, I might have had $40,000 for one marketing campaign (a rather small budget for our sales goals).
So, while I was creating marketing materials, feverishly meeting deadlines and managing agencies, the staff was charged with answering the phone and helping the customers once they inquired about the promotion.
In other words, it took a lot of effort (and money) just to get the phone to ring. Incoming calls were recorded and part of my role was to listen in to hear how those customer-facing staff handled the promotion inquiries. You can imagine my disappointment when one staffer didn't even know what the promotional offer was! That's no way to impress someone who is considering to buy.
My point here is that so many businesses focus on customer acquisition without considering the impact on customer retention and referrals.
To create a raving fan who stays and refers others...
you have to be better than good. You have to be outstanding!
After all, for someone to refer you, you have to live in their head rent free for awhile. They have to want to remember you and make the effort to share your business contact information.
The more you impress them, the more likely you will become a referral. So, what can you do to increase customer retention? Here are a few strategies:
Build strong customer relationships: Be responsive to their questions, show empathy, preemptively give them the information they need to know about how things work and what to expect. (Explainer videos can help you do this.)
Offer a superior customer experience: Consistently exceed customer expectations. Provide a seamless and positive customer experience from the time they land on your website, to the first email they receive from you and so on. Creating a superior experience is about making things easy for them, calming their fears and reassuring them they are in good hands. (Yes, explainer videos can help you do this as well.)
- Regularly communicate with customers: Stay in touch with your customers through various channels such as email newsletters, social media or video. Keep them informed about new offerings, promotions or relevant industry updates. Show that you care and maintain top-of-mind awareness. (Explainer videos can become a part of your recurring communications.)
- Seek and act on customer feedback: Actively seek feedback from your customers to understand their experiences and identify areas for improvement. Use surveys, customer reviews, or social media listening to gather feedback. Respond to feedback promptly and take action to address any issues or concerns raised. (Use an animated video to recount a story of how customer feedback increased the solutions you provide.)
- Provide ongoing value: Continuously provide value to your customers after the initial sale. Offer educational resources, helpful tips or exclusive content that aligns with their interests or solves their problems. (Animated explainer videos are a great educational tool.)
- Offer proactive customer support: Anticipate customer needs and be proactive in addressing concerns. Monitor customer interactions, identify potential pain points, and take preventive measures. Provide self-service options, such as comprehensive FAQs or knowledge bases, to empower customers to find solutions on their own. (Explainer videos can become a part of your FAQ and resources.)
How will you apply these retention strategies?
Additional ways to retain customers may include loyalty programs, building a community and improving your services with feedback you gain from current clients.
There's no doubt, effort to increase customer loyalty will improve your bottom line. Which of these effective strategies are you ready to take on now?
If you're curious about how adding animated explainer videos can help your business grow, set up a Zoom call to get started.