Customer Retention Strategies
Emmanuel is a Small Business Consultant, Start-Up Advisor and Consultant…
How Superstores Are Utilizing Superior Customer Experience To Increase Retention Rates And How SMEs Can Adopt Technique
“A happy customer tells their friend, an unhappy customer tells the world”
One of the major challenges Small and Medium Enterprises (SMEs) face is customer retention. This is the ability to make customers coming back after the first purchase. Repeat sales to the same set of customers over time encourage loyalty and as a business owner, you need loyal customers to ensure you are in business.
The reason why it is important to have strategies for both customer acquisition and retention is that it takes as much as 3x effort, time, and resources to acquire a new customer than to retain them. Therefore the ability to manage an already existing customer helps a business build loyalty and profitability eventually.
There are several examples of how different businesses have used customer experience to boost customer retention. A major shift in consumer’s purchasing behavior can be seen in the emergence of superstores across Africa. There have always been supermarkets within neighborhoods where residents make regular purchases, however, their inability to create a unique experience for buyers has caused customers to visit these superstores that can create the experiences they desire.
As customers emerge, their needs begin to shift from just satisfaction of these needs to getting an experience that helps them create memories whenever they go shopping, and this evolution has made businesses think about how to capture these experiences in their offerings.
Some variables that have seen the surge of customers to superstores from already existing supermarkets include:
Ambiance could be in the form of a serene environment with greenery or a properly lighted space where customers with their families can sit, have informal discussions and relish the memories and experiences that comes with being able to enjoy their shopping experience. An environment that creates a background for good pictures puts the shoppers in a position of wanting to experiment with different scenery. This range of experiences is a major factor that would keep customers loyal to a brand.
- Competitive Pricing
Superstores have also learned the ability to engage their supply chain to get competitive pricing for the bulk purchases made in order for retailers to benefit from obtaining goods at what they consider reasonable and affordable.
Music playing in the background from loudspeakers across the building of these superstores helps to also create some refreshing moments in the minds of the shoppers, which makes them loosen up as they enjoy the homemade artistry of popular performing artists and musicians.
Shopping in an environment that considers hygiene a priority is one that customers consider unique in terms of experience especially as the covid-19 pandemic is yet to be completely wiped out. Seeing the janitors continuously working around the environment to ensure there is cleanliness makes shoppers become confident not just in the offerings but in the conveniences.
- Parking Spaces
A superstore expects to get a lot of customers and there becomes a new challenge to create ease while they shop. Ease could come in the form of creating parking lots to not just accommodate their vehicles but also guarantee the security of their assets.
Africa is a unique market and for a superstore to thrive, an understanding of the driving factors needs to be considered in order to create unique offerings.
No matter how big or small a store is, it will never grow beyond its ability to create a unique experience for its customers.