In an increasingly competitive world, just acquiring customers isn’t enough. The real challenge is retaining them for the long haul.
The first step to improve your retention rate is to benchmark and track your company's current retention rate, lifetime value, and churn rate. Know where you're starting so you can accurately target improvements.
Strategic perks strengthen retention
Encourage engagement. A strong perks program gives customers incentives to keep engaging with your brand - redeeming offers, checking for new deals, and participating in loyalty programs. This drives retention by continually reinforcing value.
Reward loyalty. Perks make loyal customers feel valued through personalized promotions, VIP access, and special treatment. Customers who feel appreciated are more likely to stick around.
Make your customers smile. Unexpected perks like birthday gifts, anniversary upgrades, or appreciation credits delight customers. Feel-good surprises build positive associations that keep customers coming back.
Reactivate inactive accounts. Targeted win-back perks bring wandering or at-risk customers back into the fold before it’s too late. A well-timed offer can save a high-risk relationship.
Promote milestones. Perks for milestones like one year anniversaries, renewals, or new product launches celebrate progress and shared history. This cements retention.
Foster community. Perks that bring customers together like insider events, early previews, or exclusive member groups build a sense of community. Connected customers stay loyal.
So where do you start?
It’s important to keep in mind that the success of a perks program depends on how well it's designed and executed. Offer perks that are relevant and valuable to your target audience and communicate the benefits clearly to your members. Additionally, you should regularly review and update the perks program to ensure it continues to meet the evolving needs and expectations of your customers.
Integrate perks into the flow
- Identify the most common reasons why members don't renew their subscription. This information can be gathered through surveys, feedback forms, or analyzing customer behavior.
- Paylode can curate a list of perks relevant to your customer base’s demographics.
- Communicate the perks program to your members. Let them know what they can expect if they renew their subscription and highlight the benefits of the program.
- Track the effectiveness of the perks program. Monitor the renewal rate of your members and see if the perks program has had a positive impact on retention. Paylode has a full reporting suite to track usage.
By offering a perks program that addresses the reasons why members don't renew, you can incentivize them to stay with your subscription service and increase your retention rate.