Did you know a 5 percent increase in customer retention correlates with at least a 25 percent increase in profit?
There are numerous such customer retention statistics that reaffirm just how important it is. Unfortunately, so many business owners, obsessed with new acquisitions, overlook this aspect. This also includes reseller hosting businesses.
Are you one of them?
If yes, you’re missing out on a lot of opportunities to drive revenue at a lower cost; you’re missing out on the opportunities to optimize your ROI.
The good thing is increasing customer retention isn’t as difficult. You already have people who purchased from you – people who know about you and your products. With little effort, you can reengage them to make another purchase from you.
Here are # strategies for reseller hosting businesses to increase their customer retention rate and boost customer lifetime value:
Create a loyalty program
This is a tried and tested method to increase the customer retention rate.
You have to offer your customers some reasons to stay with you. Creating a loyalty program will help you do exactly that.
Offer some free stuff to your customers. Offer them compounding value every time they engage with your product or brand; every time they make a purchase.
For example, anytime someone renews their hosting plan, give them extra discounts. Whenever they upgrade their plan to something at the upper tier, give them discounts. Incentivize their actions.
Surprise and Delight
For instance, if it’s your customer’s birthday, send them a gift card to shop on some popular marketplace. If it’s Christmas, send them a winter scarf. If it’s Cyber Monday, increase the validity of their plan by 6 months.
The surprise & delight concept is VERY effective in customer retention, as well as in brand-building.
Of course, this will cost you resources. But the returns make this expense much more worth it.
Ideally, you should focus on high-paying customers if you’re crunched financially. Such S&D will enhance your customers’ experience, making them stick with your brand for very long.
Have a weekly newsletter
The objective of this newsletter is two-fold.
One, sending these emails will boost communication between your brand and individual customers, which is almost essential in the present context. (A strong connection between the two parties will help increase customer loyalty and retention.)
Second, web hosting is an expansive segment with many technical and business aspects to it. It has a long learning curve. Your customers need help with this learning curve. Sending them scheduled emails for educational purposes is very beneficial.
So, create a weekly newsletter. Send your customers engaging and educational emails regularly.
Run social media ad campaigns against them
When your customers signed up for your best reseller hosting plan, they gave their name, email, phone number, and other details.
Use this database to run social media ad campaigns against these customers.
Reach out to them on relevant platforms like Facebook, Twitter, LinkedIn, and Instagram with interesting ads. Let them know about the new discounts, add-ons, whitepapers, and more.
The objective here is to re-engage the existing customers and aim for an upsell or renewal.
Referral Program
Some of the top brands use referral programs to improve customer engagement and loyalty.
The clear benefit of this is that it will bring you more acquisitions.
But what more, it also increases retention. For instance, you can have a referral program where every new customer your existing customer brings, the latter would get free add-ons or additional discounts.
This can drive engagement between your brand and customer, motivating them to stay with your business reseller hosting.
So, get together with your team and create a good referral program that makes sense for your business financially.
Amp your customer service efforts
You cannot expect a customer to stay with you if you take hours or days to respond to their emails and messages.
If you offer them poor-quality assistance and support, they would leave as well.
So, to improve the retention rate of your best reseller hosting plan, it’s essential to improve your customer support solution.
Hire the right people; train them the right way.
Ensure your customer service team is delivering a prompt and satisfying experience to everyone reaching out to them. The more satisfied the customers are with this engagement, the higher the chances of them renewing their reseller hosting plan.
A content strategy around retention
Yes, you need a dedicated content marketing strategy that’s centered around customer retention. However, in general, many business owners completely ignore this. Don’t be one of them!
Create a content strategy that focuses on engaging your existing customers. For starters, as the best reseller web hosting provider, you can educate them about web hosting; how they can use their hosting plan and maximize the returns. You can create guides on troubleshooting. You can create blog posts on how your customers can create great websites and get more traffic.
There are many different types of content you can create, distribute, and market. Do it! With blog posts, videos, infographics, you can trigger engagement between your brand and customers, which can then subsequently boost your customer retention rate.
Tap on the power of personalization
Personalization is one of the best CRO tactics. It can increase the customer retention rate as well.
So, instead of sending generic emails to customers, personalize them.
Call your customers by their name. Based on their demography and other data points, personalize your communication to make whatever you’re saying more relevant and friendly. Further, if you’re aware of your individual customer’s pain point, reach out and help them with that.
In short, personalize your engagement with customers and you will automatically find your retention rate go up.
Focus on brand building
No matter which stage of the funnel we’re talking about, brand plays a key role. A customer is more likely to stay back and engage with the brand if that brand is well-renowned and highly trusted as opposed to someone who is not known.
So, all the while, it’s also important to continue working on building your brand presence, reputation, and trust value. Keep investing in your brand. Make sure your customers feel pride in being associated with you.
Final words
These are 9 effective strategies to boost your customer retention rate and optimize your returns.
Take proper steps starting today and stride forward confidently to become the best and cheap reseller hosting provider that customers trust and recommend.
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