DirectMail IO Blog

6 Surprising Ways to Increase Customer Retention

Written by Mike Paine | Aug 24, 2020 2:19:01 PM

Every company is looking for ways to make connections with customers. There are key strategies, such as personalizing your message to small segments of your audiences and looking for ways to add value.

But how do you make that connection that causes a customer to respond to your content? Here are six surprising techniques that may give your marketing strategy a kick:

Label Your Customers

If you ask someone outright, they will likely say that they don’t want to be labeled or put in a box, but the research says something far different. When voters were labeled as “politically active” their turnout was 15% higher than those given no particular label.

This translates to marketing when customers are labeled as “elite” or “platinum,” as a way to designate them as part of a special group of customers who may see themselves as catered to by your company. It provides a feeling of superiority.

Be Your Own Devil’s Advocate

Social psychologist Charlan Nemeth found that introducing a devil’s advocate into a discussion does not produce a reconsideration of a particular position. Instead, it tends to strengthen the resolve of the person being challenged.

This means that when you include a statement such as, “Some may say that our rocket blaster is complex, but let’s face it … rocket scientists aren’t known for being simple,” you cause your customers to dig in and root for your brand, rather than against it.

Create Reciprocity

This is one of the more mysterious sources of customer responses, but a small gift has been shown to increase the response rate. Even when it’s as small as a free soda, a little gift increases a customer’s feeling of obligation to your company.

You can try a variety of perks, from surprising your customer with an overnight delivery just to wow them, or putting a little ‘thank you’ gift in their shipment.

Designate a Rival (or Even an Enemy)

People identify strongly with their group, even when the differences are seemingly trivial or even meaningless. Poking fun at a competitor or simply communicating “this is how our customers are different from our competitor’s customers” can be a powerful way to build brand loyalty.

This tactic is not necessarily about villainizing your competitor. It’s more effective when you use it as a way to show what your values are and how that makes you stand out from the rest.

Stand for Something

This has benefits far beyond encouraging a customer response, but giving your customers a way to join you in a cause is great for connection. People flocked to buy Toms shoes not only because they were comfy, but also because they provided an easy way for customers to join the company’s mission to give a pair of shoes to someone in need for every pair they sold.

If you haven’t identified a way to give back to the community, be sure to choose something that ties in with your brand. For instance, if you sell organic, homemade pet treats, think about how you could support local shelters with a puppy food drive or a spotlight on pets that need adopting.

Admit Shortcomings

When something goes wrong, you can turn it into an opportunity to connect with customers. While you may be tempted to react defensively or explain why what happened isn’t actually your fault, that’s not your smartest move.

According to research from social psychologist Fiona Lee, customers will respond more favorably to a company that takes responsibility for a mistake and explains how they will resolve it. Even if it’s true that external forces caused the problem, customers are more likely to see a company as capable of overcoming the problem when they take ownership of it.

The Bottom Line

Connecting with your customers is always about communicating on a personal level about how your product or service adds value. The more personalized you can make your message, the better. Using one of the above techniques to encourage a better response rate can help fuel those connections.

At DirectMail.io we specialize in automated and omnichannel approaches to connection. Contact us today to learn more.