Psychology on the side of loyalty

[mouakter14]

What is customer retention based on?
You can't talk about customer retention without mentioning customer loyalty . Customer loyalty isn't made up of data or percentages, but of something much stronger: trust .

Onboarding can be efficient but also detached and an end in itself: for example, you can obtain a new lead just by offering a substantial discount, but this is not enough to gain the customer's trust.

We need to be able to establish a sort of “romantic relationship” made of mutual trust and loyalty: the better a brand is at not betraying the trust of its consumers, the less the latter will look around for a competitor with whom to betray it.

But enough romanticizing, let's get back to talking in terms of marketing: lead generation as an end in itself is useless, once you have "captured" customers you have to hold on to them, this alone can make the difference between an occasional customer and a loyal one.

To sum up: if customer retention is the network, loyalty and fidelization are the links that make it up and that allow you not to lose customers.

Customer retention best practices are therefore all those activities and strategies necessary to thicken the mesh of this network and not allow customers to escape in search of new waters to swim in.

At this point, however, it is legitimate to ask: if the budget I chinese student data have available is limited, is it better for me to invest in new customers or old customers?

According to a study by Harvard Business Review , a 5% increase in retention rate leads to a 95% increase in profits. Therefore, we can say that trust is the winning horse on which to bet the majority of the available budget.

Psychology and marketing are not two parallel universes. In fact, marketing, before services or products, is mainly made of people . This is why it is very useful to delve into the mental mechanisms that can be exploited to increase customer loyalty and, consequently, corporate customer retention .

Let's find out what the main cognitive biases are , or rather the mental shortcuts of consumers that can be leveraged through a good retention rate strategy:

Familiarity bias : We prefer what we already know to new alternatives. This is because we remember the positive experience we had with a brand and it makes us feel more confident in continuing to choose it.
Confirmation bias : we tend to consider valid and take into consideration only information that confirms what we already think or believe. We avoid anything that could contradict our beliefs. This bias is very important in terms of brand advocacy : if I have a positive idea of ​​a brand, I will tend not to consider any criticism or opinions that are opposed to mine as real or reliable and will even defend the brand.