Organizations that don’t have a good customer retention rate end up burning money acquiring new customers. It’s important for brands to have a strong retention strategy to build a community of loyal customers. It is the loyal and existing customers acting as brand advocates who carry the brand’s message far and wide, helping it to increase revenue.
ETBrandEquity, in association with CleverTap, has launched ‘The Big Leap’, a platform where Indian digital pioneers share their growth stories – how they not only acquire users, but also retain and turn them into loyal customers.
Tapan Acharya, Senior Vice President – India & META, CleverTap kicked off the Mumbai edition of The Big Leap roadshow series by highlighting that customers today are looking for brands that can help them save time and effort . He further added that “customers like to be addressed individually, as they don’t have the time and attention needed for generic messages. This makes sending personalized messages very crucial for brands. »
The panel discussion “Decoding Customer Engagement Strategies” that followed went deeper into the different customer journeys and explained how brands can create personalized solutions to retain their users. The session included industry leaders such as Vipin Gupta, Chief Technology Officer, Starbucks India; Naveen Chaluvadi, Chief Digital Officer, YES BANK; Deepak Sharma, Product Manager, Pepperfry; Ayush Varshney, Chief Technology Officer (CTO), Testbook.com; Karan Mehta, Founder and CTO, Kissht; Anand Dubey, Head of Marketing, Mahindra & Mahindra Financial Services and Tapan Acharya, Senior Vice President – India & META, CleverTap. The session was moderated by Ashwini Gangal, independent editorial consultant.
A major component of the success of any business is its ability to create a positive customer experience. The latter represents a summary of what customers think of the brand and the experience they have at each stage of their buying journey. A marketer with a clear understanding of the customer journey can identify what changes need to be made to improve that experience in the customer journey, and therefore the retention rate.
Chaluvadi highlighted how customer retention strategies in banking have taken a major technological leap through online support. “The digital is no longer a simple object or an element. It is a language and a conversation. It is our job to replicate the contextual understanding and meaningful conversations of physical interactions in the digital world,” Chaluvadi said.
On top of that, Mehta shared that another challenge in customer engagement in the Fintech industry is walking the line between rejecting the customer and showing empathy to them. “We cannot continue to send positive messages to build a brand. At some point, you have to be a bit firm in tone to get the customer to pay when they are late,” Mehta added.
Hyper-personalization is the new norm
Today, personalization like name, gender, and purchase history is no longer enough. Consumers are demanding hyper-personalization, which uses behavioral and real-time data to create highly contextual communication that is individually relevant.
Gupta added that their plan for the coming months is to allow their customers to experience a second journey while they visit their store, and hyper-personalization will play a key role in achieving this goal. “We use location and transaction data and then offer the customer a refill or free food, based on their long-standing relationship with us. This allows us to engage the customer in a second transaction with us,” Gupta said.
Sharing a different perspective, Sharma remarked that hyper-personalization is an ideal state that cannot be achieved, but organizations should continue to aspire to that goal. “You can start from big categories like product and price and keep narrowing categories based on time of day or how users are browsing. Brands are only limited by their perseverance, appetite, and capacity,” Sharma said.
A framework for building customer loyalty
Brands should place equal, if not more, importance on customer retention over customer acquisition. Dubey explained that there is a framework for building customer loyalty – PODER – which stands for Pre-Purchase, Onboarding, Delight, Engagement and Retention. “Today, due to lack of time, marketers start from retention. If they understand the framework, marketers will have to invest less money in retention,” Dubey added.
Additionally, creating effective loyalty campaigns requires a clear and consistent understanding of customers. Varshney shared that their CTR after deploying SMS, push notifications or in-app nudges was low. “We started measuring how many times the user opened our app without notification or communication. This encouraged us to innovate to create nudges in a way that the consumer felt compelled to open our app without any pressure “, explained Varshney.
A retention mentality
Agreeing with his panelists, Acharya said retention taking center stage in itself is a sign that marketers have shifted from an acquisition mindset to a retention mindset. . “In the digital space, customers talk to brands all the time. Brands need the right tools and strategies to analyze those conversations and then target those customers based on where they are in their journey,” said Acharya pointed out that CleverTap helps brands by bringing together different tools and combining them on a data layer to provide real-time, data-driven insights for customer retention.
The session ended with all panelists agreeing that consumer experience – and reaching them in the right place, at the right time, with the right content – is key to successful customer loyalty.
For more on The Big Leap – Rise with Retention Roadshows, go here:
Brand Connection Initiative