Customer experience, social media, trust, transparency and data critically impact customer retention said representatives of leading brands speaking at the India D2C Summit 2024
Mumbai: Retaining existing customers is far more lucrative for brands than acquiring new customers. However, apart from the product or service itself, there are certain factors that keep customers loyal to a brand and create stickiness. These include customer experience, social media, transparency and data, According to senior representatives of leading brands WHO WERE speaking at the India D2C Summit 2024 in Mumbai held from 28-29 August.
Here are some of the factors that help retain customers:
Customer experience: Experience trumps everything. Customers who are made to feel valued always return to the brand. “In D2C, there is a fight about discounting. However, giving a better experience rather than discounts is a better retention strategy,” said Kanchan Shah, Head Marketing, Brand Concepts Ltd.
Trust: Customers are loyal to the brands they trust. However, inspiring trust is easier said than done, especially in e-commerce. Omnichannel brands like Vismay use offline channel to build trust which it then uses to also attract customers to its e-commerce channels. “When you see a brand physically, it helps build trust. Offline significantly helps build trust. The trust built offline helps when customers buy our products online as they know the kind of quality they can expect for the price they are paying,” said Joseph Paul George, Director, Vismay.
Social media: Social media plays an important role not only in influencing purchase decisions but also encouraging brand loyalty. “A brand is an entity. It reacts in a certain way to different situations and does not dilute itself. Your Instagram feed is a great way to show the entity’s persona,” said Niharika Talwar, Founder & CEO, Marsallime. According to her, customers like to go back to brands that show authenticity on social media.
She shared that Marsallime uses social media to share the brand’s vibe and to engage with the audience by showing them its back story through behind-the-scenes videos.
“People relate with each other. Where the conversion will happen you don’t know but if you consistently and strategically keep coming in front of them, they will stay with you,” she said.
Data: Data helps brands understand customers better. “Data plays an important role and the personalised offers brands create using insights from the data help inspire loyalty,” said Bhavesh Pitroda, Convenor, India D2C Summit & CEO, IMAGES Group. According to Sagar Bhalotia, co-founder, TagZ Foods, while quick commerce is a great channel to serve existing customers better, lack of access to consumer data and profiling is a challenge that needs to change going forward. “Data-driven personalisation is the next big thing,” said Samir Srivastav, CEO, Looks Salon.
Transparency: Customers stay loyal to brands that are honest with them. Brands that try to get sly by showing one offer and then putting hidden riders, tend to lose customer respect and business. “Having riders on offers is a business compulsion as every campaign has to have a return on investment. However, businesses need to be transparent and honest about the riders—Indian consumers are open and understanding. They understand and accept,” Srivastav said.
