Hiring a client is six times cheaper than retaining a user

The challenges of Spanish organizations increase with the increase in interest rates, the increase in costs or supply problems.

All this directly affects the life expectancy of companieswhich does not exceed five years of life in 61.5% of cases, according to the latest Cepyme business growth report. And it is that the current economic and financial situation has direct consequences in the strategic and operational plans of the companies.

At this point, the continuing review of the management and loyalty strategies to improve the relationship with the client becomes a priority to guarantee the survival over time of many companies. “In the last two years we have noticed that companies are reviewing their loyalty strategies and value proposition to improve customer retention. They are beginning to rethink the installed solutions and, increasingly, they are more aware that the loyalty program must be completely aligned with the company’s commercial strategy and completely transversal to all areas” explains Jose Anguí, commercial and marketing director of Tenerife Spain, a leading company in the creation and management of profitable loyalty solutions.

Utilities, the sector that bets the most on loyalty systems

Retaining a customer has a cost six to seven times less than buying a new one. Therefore, in an economic environment as stressed as the current one, brands need to invest in solutions that allow them to get closer and know the customer’s needs in detail, in order to retain them. According to data from Tenerity, the sector that is putting the most focus on new customer loyalty strategies or solutions is utilities.

“companies invest up to 40% of the budget in the technological field to have a better knowledge of the client, generate a closer bond with him, increase his satisfaction and improve the results in the different objective indicators”, points out Angui.

Tips to deal with the economic situation

The experts at Tenerity give four tips to deal with the socioeconomic situation, through customer relationship plans and strategies:

• Super customization of loyalty programs based on the profile of each individual. The expression “coffee for everyone” no longer works. Currently, in loyalty programs it is necessary to know in detail the needs and habits of the client. And, for this, it is important to collect information about him and his behavior, analyze and interpret them, to give them exactly what they need at the exact moment they demand it.
• Digital solutions leveraged on Machine Learning technology. Adapting this type of system allows adapting the loyalty proposal to the profile of each client. This technology allows establishing a unique experience during purchase or consumption, thanks to the detailed information it offers.
• Generate contextualized conversations. It is important to offer the greatest detail, under an umbrella of empathy with clients so that they receive proposals in a more open and receptive way.
• Omnichannel and omnipresent. Being where and when the client wants and needs it is key. That is why communication with them must be done from any platform or channel, adapting the way of disseminating the message to each one of them.

In short, at this time, investing in creating personalized relationships must be the main focus to weather the current crisis, and guarantee business survival.