How To Boost Retention With Handwritten Notes

By keeping customers engaged and interested in products and services, companies can bring their revenue to the next level. Existing customers are the foundation of a company and new customers are the cherry on top. Businesses cannot scale properly without paying close attention to retention marketing.

One reason that makes existing customers so valuable, is that they are much easier to sell to.

According to Marketing Metrics, the probability of converting an existing customer is 60 percent to 70 percent. The probability of converting a new prospect, on the other hand, is only 5 percent to 20 percent.

So, what retention marketing tactics do you need to know and how can you drive more profitability? One very effective approach  is using a handwritten letters.

Winning customers is expensive

Churn is a not only a growth killer but it also dents your profits. Acquiring new customers is an expensive and tedious process. In fact, it can cost up to five times more to get a new customer than it does to keep an existing one. And, the costs are rarely accompanied by more revenue.

So, how can you expect a bucket to fill when there are too many leaks to plug? Limiting the leaks, through customer retention marketing strategies is how you fill your bucket, or less metaphorically, improve your bottom line.

According to Harvard Business School, and a study on the economics of e-loyalty, in industry after industry, the high cost of acquiring customers renders many customer relationships unprofitable during their early years. Only in later years, when the cost of serving loyal customers falls and the volume of their purchases rises, do relationships generate big returns. The bottom line:

 

 

Increasing customer retention rates by 5 percent increases profits by 25 percent to 95 percent (Source: The Value of Keeping the Right Customers ・HRB)

Additionally, a study by Adobe Digital Index from 2012 shows that on average, an existing customer generates as much revenue as five to seven new customers. With one percent of first-time buyers who visit an online store again, revenue increases by 10 percent.

Not to mention, returning buyers are reliable even in difficult economic times.

Upgrading your client relationships with handwritten notes

A business cannot expect a customer to stay loyal to a company as long as nothing bad happens. Unfortunately, it’s not that simple. There are many other organizations vying for their business which means that you can’t be on autopilot. You must assume a customer will leave unless you continue to make good things happen.

Strengthening that bond is key to customer retention. And, customer retention begins with great customer service. A study conducted by Walker showed the value of personalized customer service and experience.

In fact, 86 percent of buyers who participated in the study said they would pay more for a better customer experience. And by 2020, customer experience will overtake price and product as the key brand differentiator.

So, how can you strengthen your customer experience and in turn, customer retention?

Getting emotional with handwritten notes

First, you must remember to devote time to existing customers in terms of smart retention efforts.

People have relationships with other people, not companies. And, long lasting retention depends on building real connections throughout all touch points in your business. Unexpected human responses and personal touches can have a profound effect on your customers and improve your retention.

For instance, something as simple as receiving a handwritten notes can solidify a customer relationship. In a world of digital communication, handwritten notes can be very powerful as they are more rare and personalized.

A handwritten note stands out against the mountains of emails, tweets and status updates we all receive each day.

The better your business can deliver personal, human experiences, the greater bond you will form with your customers and the better your customer retention rates will be.

Sending beautiful handwritten notes to express gratitude

The ultimate in luxury communications is the handwritten letter. They are rare to come by as a recipient, which makes them special and coveted.

Though handwritten notes are best when crafted by the individual, it may not be realistic to go above and beyond for every one of your customers. Rather than choosing who should receive one, let an expert help you scale your efforts.

That’s where Pensaki can step in. We do all the heavy lifting for you. Pensaki is a 100 percent online service for creating scalable, beautiful handwritten notes which are perfect for a customer retention marketing strategy.

Learn how Pensaki can surprise your customers today.