4 Ways You Can Improve Customer Retention Through Market Research

by | Jun 11, 2019 | Market Research Expertise |

Acquiring and retaining customers are prerequisites for business success. However, you need to understand that it costs more to establish links with new clients than what you incur when you focus on retaining existing ones. Customer retention will make your enterprise more profitable and prioritizing this concept is a wise decision if you are pursuing business growth.

Improve Customer Retention Market Research

You cannot win the loyalty of your customers without an understanding of what they need and the best solution for the challenges they are facing. Conducting market research will help you fulfill the requirements of your clients, and in turn, that will promote customer retention. Here are details on how market research can improve customer retention.

Leverage The Online Community

Gathering feedback from customers is not an option if you want to establish whether your brand is meeting their expectations or not. There are several data collection approaches you can use to gather the information you need from your clients, but the challenge is that you will most probably end up with general views.

If you need specific feedback regarding your brand, you should consider establishing an online community that will provide such information. For instance, Fuel Cycle is a resourceful market research tool that avails a platform for your customers to interact and give in-depth feedback. In that case, conducting surveys through the help of your online community will help you adopt long-term solutions and an ideal strategy that will boost customer retention.

Seek to Understand Your Customers Through Surveys

Customer satisfaction is at the core of the success of every enterprise, and for that reason, if clients are unhappy with your products or services, they will move on to your competitors. The implication, in this case, is that the aspect of understanding your clients is something you cannot avoid as an entrepreneur.

Some of the things you need insight on regarding your customers include details on what encourages them to remain loyal, their needs and wants, those who represent your brand advocates, their preferences, factors affecting their purchasing decisions, where they shop, what they are willing to pay, how they buy, among other things.

Once you understand your customers after gathering necessary details about them, you can develop the right strategies in line with their tastes and preferences, which will win your business their loyalty.

Create Customer Segments Using Data

As you conduct market research to improve customer retention, you need to know the information you should get from every client. Some of the crucial details that each customer should share include their purchasing patterns, age, values, gender, interests, education level, behavioral patterns, income, preferences, occupation, lifestyle, place of residence, among others.

The personal details you gather about each client when conducting market research will not only help you to create customer segments, but it will also encourage the development of personalized products and services for customers thus promoting loyalty.

Create Personalized Experiences Through Market Research

Personalization is at the heart of the interests of most customers and business owners who honor this requirement will increase the potential of retaining their current customers. Gathering data can be challenging for one reason or another, but when your clients understand that the intention behind the market research you are conducting is to create a personalized experience for them, it can improve the outcome of such a task.

Additionally, some clients may be willing to sacrifice more data in exchange for bespoke products and services, and that is an indication of the value they attach on personalization. Failure to personalize experiences for your customers after researching the market may cause you to lose much more than you expect, which makes embracing this idea a preferable option.

If you need more information on ways of improving customer retention through market research, contact the marketing research professionals at New Perspectives today!