Customer retention is one of the critical metrics that define brand success. Inspiring customers to keep coming back reduces churn and inspires long-term loyalty, but retention is still one of the toughest parts of marketing — not every campaign can get the job done. If you’re struggling to retain customers in a competitive environment, read on to learn how these brands built a devoted following.
Sephora gives beauty addicts more of what they crave
It’s no secret that rewarding customer loyalty is a prime driver of growth. Beauty retailer Sephora has utilized this strategy to great success, earning over $10 billion in revenue in 2019 alone. The fact that their luxury makeup and beauty aids are sold at online and retail storefronts surely accounts for much of this, but Sephora also inspires customer retention by offering a user-friendly Beauty Insider rewards program that any customer can join for free.
It’s simple: for every purchase, customers receive Beauty Insider points. They can then use these points to nab predetermined items, including mascara, lipstick, makeovers, meet-and-greets, and even travel getaways. While the average customer likely won’t spend enough money to qualify for those high-end rewards, it’s still nice to know you’re earning something every time you refresh your beauty routine. On top of that, Sephora gives its insiders free birthday gifts to make their special day even brighter.
Starbucks’ mastery of convenience is more important than ever
Long before contactless ordering and food pickup became a necessity, Starbucks was on top of it. The coffee chain offers a level of convenience that many others can’t compete with: simply place your order, pay through an app, and pick it up from a special counter when you arrive at the store. No waiting in line, no talking to people, no exchanging cash.
While this convenience was always a “nice-to-have,” the circumstances created by the coronavirus pandemic made it a must-have. Once businesses started to shut down their in-store services, Starbucks was already ahead of the pack with fully implemented pickup orders. As the marketing world settles into its new normal, this tactic will ensure the company’s retention remains high through 2020 and beyond.
Apple’s top-tier customer service creates a cult-like following
Ask any Apple fan why they’re willing to spend more money on a computer, phone, or tablet, and you’ll likely hear some variation of the following: it just works. Apple built a tech empire on standing out from the crowd and creating an ecosystem of aesthetically pleasing hardware and intuitive software. But technology isn’t infallible, and things inevitably go wrong. Thanks to Apple’s incredible customer service, this doesn’t have to be the end of the world.
All of Apple’s retail employees are impeccably trained, but the Genius Bar team alone has more expertise than you’re likely to find at any other electronics retailer. The brand also makes it easy to address issues either in person or online, with step-by-step guidance if you need to send off a device for repair. Buying new technology is a hefty investment, and knowing you’ll be taken care of if something goes wrong is worth a lot to customers.
Warby Parker’s eyewear revolution is backed by an inspiring message
Warby Parker was founded to break through the expensive eyewear monopoly by delivering high-quality designer products at an affordable price. In just a decade, the company grew from an online startup to a billion-dollar juggernaut. As it turns out, people really like being able to afford glasses and contact lenses!
But there’s something else customers like: a message of social responsibility. Warby Parker’s “Buy a Pair, Give a Pair” program has donated glasses to people in need worldwide. During the onset of the COVID-19 pandemic, the company pivoted to donating personal protective equipment and health supplies. Getting a great pair of glasses on the cheap and helping people help others? That’s a no-brainer strategy for customer retention.
Creating a successful customer retention strategy is no easy task, but these brands are getting it done. If you’re struggling to build your own retention plan, loyalty, convenience, competence, and social consciousness are great places to start.
