As it stands today, businesses worldwide are starting to get a fuzzy idea of the effect customer retention has on sales. In 2021, loyal customers are the be-all-end-all of any brand. A fact not lost on CardClan; a platform constructed around the necessity of engaging consumers by forging meaningful personal relations that go beyond superficial sales pitches.
Allow us to give you a clear picture of why customer retention is so necessary.
Customer Retention: Easy Solution to Big Problems
Businesses rely on loyal customers to maximize their profits, improve their return-on-investment (ROI), and gain authority among their audience. However, some of them don’t make an effort to prioritize their loyal customers’ needs.
Consciously or sub-consciously, they spend more effort on customer acquisition than customer retention – which causes customer churn. In easier words, they spend more time entertaining a newer audience and gaining their attention. All their efforts are channelized toward attracting a new audience which causes them to neglect their current customers. Resultantly, their unengaged customers tend to leave the brand.
It’s like abandoning your current friends and trying to gain new friends, which takes more time and effort from you. The same is the case with your customers. And if you’re not engaging and delighting your current customers throughout their customer journey, you’re going to lose them. Meanwhile, gaining new customers is going to cost you more time and money.
Therefore, a customer retained is more important than a customer earned. That’s because convincing an engaged customer is less draining as they already know your brand values, what it stands for, and what it offers. Eventually, an engaged and happy customer becomes your product’s marketer and helps you expand your customer base.
On the other hand, convincing new customers to buy your product first requires you to get them to know your brand and like what you offer. It takes a lot more time to convert them into loyal customers.
With all that being said, we don’t want you to focus any less on strategizing your customer acquisition techniques. But we’re here to help you understand that concentrating on your customer retention strategies is equally (sometimes even more) beneficial.
Why is it Necessary to Nurture your Relationship with Customers?
Your customers are your business’s strength. The progress of your business is highly dependent on how you maintain your relationships with your loyal customers. In fact, according to Gartner Group’s 80/20 rule, it’s the 20% of your existing customers who actually drive your company’s future profits. That tells us that it’s an ultimate necessity for businesses to foster relations with their loyal customers.
Consequently, if you fail to maintain deep connections with your customers, you may face the following difficulties:
- Your brand doesn’t get authority among your audience. Therefore, your brand doesn’t pop up in their mind when they need help.
- Your customers won’t feel appreciated, and they won’t collaborate with you or provide you testimonials or ratings.
- If you don’t take a strategic approach to engage your audience, they may feel out of touch.
- Lack of personalization can develop a gap between you and your customers.
- Customers who are not being engaged eventually lose their interest in your brand.
You lose 10% of your customers’ influence if you don’t interact with them regularly.
Therefore, it’s utterly necessary to understand customer behavior, be available for them, and empathize with them to win their trust and loyalty. After all, happy customers can help you achieve your long-term business goals.
CardClan’s Viewpoint on Customer Retention
CardClan is an excellent platform for people and businesses to revitalize their relationships with their loved ones.
As a brand, you need to be there for your customers when it matters the most. That’s what will drive them to like your brand and help you stand out from your competition.
Wish your customers on their birthdays from your whole team and initiate a personal relationship with them. Not just birthdays; it could be any event. You can even send digital cards to your customers on your business’s anniversary or any other special occasion to include them in your celebrations.
Generally, businesses connect with their audience through their email newsletters, social media channels, or videos. All your content and social media marketing techniques could be fruitful and help you gain authority among your audience. It’s not something out-of-the-box because most businesses are already doing all these things.
These techniques do help you educate your audience about your products or the latest industry updates. However, they don’t help you establish a personalized relationship with your audience. To seed a relationship based on trust and empathy, you have to go beyond the limits to reach out to them and establish a human-to-human connection.
CardClan’s ideology is to send collaborative greeting cards from your whole team to your customers. That way, it’s not just the CEO or sales team connecting with the customers. It’s your entire team connecting with your customers. As a result, the customers can get a chance to meet the whole team and enjoy reading every member’s wishes and greetings.
A good relationship of reciprocation between you and your customers can improve customer experiences and increase customer satisfaction. A happy and satisfied first-time customer can then quickly become your product’s advocate and market your brand.
Break Barriers: Reduce Employee-Employer Gap and Employee Turnover Rate
Among the top reasons why companies often lose their best employees, employee engagement is the top reason why they don’t stick around. And your A-players leaving your company can leave a massive impact on the productivity levels of your company.
Below are some of the reasons that act as a catalyst to the employee turnover rate.
1. Lack of Appreciation
A boss is not supposed just to give negative reviews and provide feedback to the employees only when things go wrong. If you don’t value your employees and connect with them on a personal level, they’ll feel underappreciated and leave your company as soon as they find a better opportunity.
Therefore, to maintain a positive workplace culture, your feedback or connections shouldn’t be limited to annual performance evaluations only. Instead, empathize with your co-workers and employees to understand their pain points or what hinders them from performing well. After all, empowering your employees will help your business grow in the longer run.
2. Strict Company Culture
Companies that are in-adaptive to diversity, don’t listen to their employees or support their needs, and don’t assess employee disengagement signs, often lose talented individuals. If the employers don’t favor their employees, they shouldn’t expect them to go the extra mile for the company’s success. A strict and in-adaptive company culture produces gaps between co-workers which seeds job dissatisfaction. Therefore, companies should welcome diversity, encourage employees to be creative, inspire them to share their opinions and insights, and reward them regularly and publicly.
3. Lack of Transparency
Oftentimes, due to a gap between a manager and an employee, simmering frustrations keep on boiling until they reach the point of no return. Employees don’t trust their employers if they are dishonest to them. The employees today are aware of their rights, options, and self-worth. If a company fails to recognize talented individuals, they are going to lose them to their competitors.
Therefore, it’s necessary to reward the hard-working individuals in your firm, celebrate their success, and recognize their contribution to the company’s growth and success.
4. Lack of Friendship
An average employed person spends 8.5 hours of their day at their workplace. Since you spend a significant part of your day at work, it’s essential to have friends in your workplace.
According to Gallup’s research, employers should encourage employees to have good (or even best) friends at work. It’s a great way to retain employees and promote open communication among the team members.
On the other hand, if the company culture is too toxic for the employees, they may feel misfit in the company and leave it despite the job benefits. Therefore, employers should ensure that there isn’t any negative air between the employees. Furthermore, they should encourage employees to participate in social activities and collaborate daily to know each other better.
5. Distances Between Remote Workers
Due to COVID-19 or any other reasons, people working from home can feel disconnected, disoriented, and distant at times. Due to this reason, it’s getting even more challenging to collaborate with team members.
There are many software and tools used as an alternative to physical team meetings, events, and team collaborations. However, the tools are causing digital fatigue, creating even more distances between employees.
In such a situation, we need a tool that focuses on human connections and sustaining bonds with co-workers.
How Does CardClan Reduce Employer-Employee Gap?
CardClan offers a great way to improve your difference in opinions by leaving behind your clashes and supporting each other on your way to success. With CardClan, it’s easier to share team wins, include everyone in your team activities, and celebrate every success together. Not only does this improve employee relationships, but it also improves the overall company culture.
Sending digital cards to your colleagues and teammates can make an impeccable difference in your workplace environment. Here’s how:
- Personalizing your relationships will remove communication gaps between you, your employees, and your co-workers.
- Building relationships with your subordinates will encourage them to speak their minds and bring fresh ideas to the table.
- Good relationships at work mean a better company culture, an exciting workplace, and a productive environment. Furthermore, your team will support each other, build each other up, and work on personal development.
- A positive workplace culture leads to Improved employee morale.
- Higher employee retention rate.
- A higher job satisfaction rate among employees.
- People are more willing to take healthy risks due to a friendly support system in the office. Therefore, you can challenge each other in a constructive, productive, and positive way.
- Honest environment, mindfulness in words and action.
Your effort to building strong ties with employees will pay you back in the long run in the form of a productive and healthy workplace.
CardClan is a human engagement platform that focuses on the core principles of relationship building. It is a holistic solution for businesses, employers, and people who wish to nurture their relationships with their loved ones.
Whether you want to establish a personalized relationship with your customers or co-workers, CardClan does it all. We have various templates that you can use to send automated digital cards to your dear ones and make their events even more special.
Card Clan plays a vital role in building and nurturing relationships to create an atmosphere where everyone is comfortable and happy to contribute. Furthermore, businesses can improve their revenue, reputation in the industry and grow as an organization.
Sign-up today and begin on a journey of deep and meaningful relationships with your loved ones.