Customer retention - it's harder than you think. At least it is if you're doing it wrong. The problem with most companies is that they don't pay attention to customer retention until after the customer has left. If a company wants to retain customers, they have to focus on customer retention from Day 1 of the relationship. That's why you need an effective and coherent value proposition, where you're constantly talking about and reinforcing what your customers get when they do business with you.

What Is a Value Proposition?

In short, it's a clear statement that describes the benefits that a customer receives from doing business with you. Value propositions should be used in conjunction with your marketing message to help customers identify with your product or service.

A value proposition should describe the intangible value that your company will deliver to the consumer. It should be written in terms of benefit to the consumer, not in terms of features or attributes. For example, instead of saying "Our products are made by hand", say "We provide a unique handmade product". The former tells the consumer what your products are made of; the latter tells them what they get from buying your products.

The most effective way to develop a value proposition is to list all the tangible and intangible benefits that will be delivered to your customers by doing business with you, then choose three or four that are most important to your target market, and finally distill these down into one simple statement.

Once you have created a compelling value proposition, it must be communicated in a consistent manner throughout all of your marketing efforts. Failure to do so can result in confusion on the part of potential consumers and result in lost sales opportunities.

Whether you're in ecommerce or a brick-and-mortar business, having a value proposition is important for several reasons:

1. It helps define your business in the marketplace (so your customers can find you)
2. It helps with employee training so everyone knows what your company is all about
3. It helps with marketing so you can easily explain who you are and why people should buy from you
4. It helps build long-term relationships with customers who know what they're getting from you

Here are 4 value proposition programs for better customer retention:

Corporate Social Responsibility (CSR)

Your business is more than a product or service. Customers examine everything your company buys, sells, and advertises to its target market. If they notice any inconsistency between your brand's messaging and its actions, they'll be quick to notice your ingenuity.

Instead, it is critical to engage with your customers in ways that go beyond product and service. Consider their values and develop a Corporate Social Responsibility (CSR) program with a moral goal. While your initiative does not have to be as ambitious, getting involved in your customers' communities and personal goals is an excellent way to demonstrate your dedication to their needs.

Customer Loyalty Program

While it's critical to focus on customers who are at risk of churn, don't lose sight of your loyal customers in the process. After all, what will these customers think if they see you putting in all this effort for users who haven't yet fallen in love with your brand? Doesn't seem very fair, does it?

Customers should be rewarded for their continued commitment in a loyalty program. They are rewarded based on how much they shop and interact with your store. Customers will be pleased because they will gain more from the experience than just your product or service. And, because the top percentile of your customers spends significantly more than the rest of your customer base, you'll want to ensure that these users are completely satisfied.

Memberships / Subscriptions Program

Memberships & Subscriptions are both powerful tools for transforming your customers into repeat, loyal purchasers. They offer you a way to increase customer retention and reduce customer acquisition costs. Implementing a member program is an important part of any business strategy and can help you achieve your long-term goals.

And if referrals are the best or most effective way to grow your business, it's crucial that you offer incentives to customers who refer friends and family to your business. In this post, we'll cover membership referral programs as well as general tips for getting the most out of membership rewards.

Customer Feedback Loop

It's difficult to improve your business if you don't know what your customers think of it. To begin retaining customers, you must establish a process for gathering customer feedback and sharing it with the rest of your organization. This is where a feedback loop with customers comes in. It offers a system for gathering, assessing, and distributing customer feedback and surveys.

There are several methods for gathering customer feedback. The most common method is to conduct a survey by inviting customers to participate in user testing and focus groups. Using a few of these methods on a regular basis should provide your team with plenty of useful customer feedback.

At The End Of The Day…

Accurate and effective value propositions are important especially in today's market. If a business wants to stay in the game, they need to be able to differentiate themselves from those around them. Failing to effectively convey what they can offer customers will leave your potential repeat buyers disappointed.