The ability to retain customers is so valuable to businesses. Marketing research shows that it costs significantly more to get new customers on board than to get more out of your existing customer base. There is also evidence to show that a 5% increase in customer retention can result in a profit increase of between 25-95%. So, mastering the art of customer retention is a business strategy that is definitely worth investing time and effort into.
If you are looking for a way to improve your customer retention strategy then it is a good idea to take a look at some of the industries that do this so well. One such industry is the online casino industry, where the most successful companies have a highly sophisticated approach to customer retention. Let’s take a closer look at what they are doing.
Bonus rewards for loyalty
When a customer feels that you appreciate their custom, they are more likely to stay with you than go to a competitor. Online casinos offer some really significant bonuses for loyal customers, which keeps the players coming back for more.
Bonuses might not work in your specific industry but if you think outside the box, you can probably come up with a relevant alternative to reward your customers’ loyalty. Loyalty cards work a treat for many businesses: for example, buy 5 coffees and get the 6th free, or claim 20% off your next order.
Everybody loves a bit of the VIP treatment and online casinos know how to make their top customers feel valued. By creating exclusive VIP clubs for customers that give them a lot of business, there is an incentive for players to get into that exclusive club. For example, Blackjack players can join the VIP Blackjack games at SkyCity online casino. Once they are in and get used to the special VIP treatment, they are not going to want to leave.
VIP clubs can work across all kinds of industries, from inviting a select few customers to exclusive events, to providing Gold membership for customers who have been to the same hotel ten times or more.
Keep an eye on the competition
Online casinos are so good at this, as soon as one company launches an offer, the rest quickly retaliate to keep their market share. This is really important because if you are too busy looking at the offers that you provide and are not keeping a check on what your main competitors are doing, they could roll out a campaign that suddenly takes all of your customers away.
Make sure you know as soon as your competitor launches a new campaign and have a marketing strategy in place ready to counteract it with an equally attractive offer. Time is critical in this, so you need to act quickly to ensure you retain as many of your customers as possible. The cost of trying to bring those customers back over will be much more than what you invest in your counteractive strategy.
There is a lot we can learn about customer retention from the online casino industry and these are just three of the big strategies you can start with.
Interesting related article: “What is Customer Loyalty?“