How Social Media Can Improve Customer Retention Ratio

Today, whether you are running a well-established business or want to launch a venture, you can not imagine your business without social media. Social media has gained huge attention in the last couple of decades as it enables business owners to reach out to their customers in a most personalised way. Gone are the days when print media and radio advertisements were enough for brand owners to grab the user’s attention.

today, if you want to expand your business’s reach without any geographical boundary, you must consider digital tools that flourish your business. These days, after Uber’sUber’s huge success and other on-demand business models, many entrepreneurs have started to transform their traditional business because it ensures a quick return on the investment.

Now imagine you have developed a website, design a fully-functional app, but how you will attract customers towards your products and services. Having a strong customer base is key to success. According to HubSpot, good customer retention strategies are more affordable than acquiring new customers.

90% of businesses today leverage social media strategy as it gives optimum results and helps the business increase customer retention ratio. Here are the topmost effective methods that help you increase customer retention ratio through social media.


Importance Of Customer Retention

Image: (Source)

The above chart clearly shows that acquiring new customers is more challenging than retaining an old one. Hence, you need to craft a robust customer retention strategy that helps you expand your business and bring new customers. An excellent and well-depth customer retention strategy is important because it helps you reach your target goals.

Here we are talking about the online taxi business. If you have adopted the uber taxi app script for your venture, then a good customer retention ratio will add value to your transport business and help you attract new clients on a daily basis.

According to American Express, customer retention ratio is not all about offering affordable rates to clients; you also need to have loyalty programs that keep engaging customers with your business. So let’s discuss in detail how social media plays an important role in customer retention.


# Keep Track Your Followers

There are endless ways to increase followers, but you also need to entertain and educate your existing followers and customers through quality content. Social media platforms are not only about posting content and getting likes on that. Social media metrics allow you to gain insight into your follower’s likes and dislikes. It will also give you an idea about their status and personal traits.

Your online taxi business must know about your customer’s behavior pattern and their status. For instance, if your majority of followers belong from the job background, they need a cab to commute. You can attract them by giving maximum discounts. It eventually increases the customer base and builds brand loyalty in the market. This will also help you make better customer-centric products.

Moreover, you will also come to know about their pinpoints. It will help you create reliable social media content that will keep engaging them. This is the first and most important step towards making solid customer retention.


# Make Your Account Accessible

Undoubtedly, publishing quality content will give exposure to your taxi business. Publishing sponsored content will promote your brand and increase reach among the proper audience. But how consumers will find your page, here are some of the affordable methods:

  1. Place your company logo as a display picture so that people can easily recognise your brand.
  2. Your page’s name should be the same as the business name so that people can easily search without getting confused with other similar brands.
  3. Use relevant hashtags and quality graphics to improve your taxi business’s visibility that will also attract a new set of customers and start to follow your page.

Besides, keep replying to your existing customers; they will spread positive word of mouth about your taxi brand and generate revenue.

# Listen To Customers

One of the premium ways to increase customer retention ratio through social media is when businesses listen to their customers and take serious actions based on their activities. Social media channels enable your customers to share and exchange their opinions about your taxi business.

As a brand, you have to listen to them carefully because that will help you craft a well-versed social media marketing strategy for your taxi business. It means listening and responding to them on social media adds value and builds faith among the customers. Depending on their comments and feedback, you can improve taxi operations and assist customers in a better way.

For instance, you analysed user’s comments within various social media channels and observed there are lots of users talking about cab types. If you are right now only dealing with Sedan, you should now focus on offering an SUV. It will increase the customer base, and your existing customers will also prefer to book your cab over others.


# Loyalty Programs

Loyalty programs, attractive deals, and special offers can enhance your customer retention ratio. If you offer hot deals and discounts, they will likely stay with your brand. Even if they are new customers, loyalty programs, and deals will compel them to think twice before booking a cab from anyone else.

Give an incentive that entices your consumers so that they will choose your brand over anyone else. For instance, you can get five free rides to the user who installs your app. Another idea is to give special services or discounts to those who refer a new customer to your business.

Once you give a loyalty program and special deals to the users, they will share positive reviews about your brand. More positive reviews on social media mean people will automatically follow your brands and will think to access your service. Even observing more stars and positive reviews on social media, new users will also take advantage of exclusive offers.


# Post Sharing Time

Timing plays a key role when you are using social media to increase customer retention. Due to the corona pandemics, usage of smartphones and social media has suddenly risen so if you want to retain customers, you should pick the right time. If you want to increase the post’s reach, you should know when your majority of audiences are active on social media.

If you post quality content, but no one notices them, your efforts will go waste. On the other side, maximum likes and exposure will amount to maximum active engagement. Social media allows brand owners to interact with their audience. Usually, brand owners choose a night and office timings when posting the content. Advanced tools like Buffer and HootSuite enable business owners to schedule posts as per their time.

If you post content at the appropriate time, you can also easily engage with them. Simply listening to your customers will feel them valued so that they can easily trust your brand. 


Final Thoughts

Thus, promoting your products through social media will effectively increase sales and help you make a solid customer base, helping you improve business operations even better. Focusing on your existing customers streamlines your marketing results. Make sure keeping customers happy through world-class services and loyalty programs increase your followers rapidly and build brand credibility in the long run.

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Deep is an aspiring entrepreneur and Co-founder of Elluminati Inc. Deep having led 75+ startups on the right path with their information-admiring entrepreneurial skill and guidelines. Along with that he loves to craft content on topics including on-demand economy, entrepreneurship, technology trends and many more.

Cloud Industry Forum presents TWF! Jay Patel


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