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How Video Can Help You Boost Customer Retention
Question: How are customers like fireflies?
Answer: They both take much more work to collect than to keep.
Getting new customers to trust you with their business for the first time can take a great deal of effort; but once they know that you can provide them with a product or service that they appreciate, they’re much more likely to purchase from you again and again.
That’s why customer retention is so vital to operating a successful business. After all, it can cost anywhere from five to 25 times as much to acquire a new customer than it does to retain a current one. Plus, a Bain & Company study reveals that boosting your customer retention rates by just five percent can increase your profits by 25 to 95 percent.
Since video is the medium of choice among Internet users, you may want to consider integrating video into your customer retention strategy. Here are some suggestions on how to do this.
Customer-focused Videos
The first approach is to use video production to focus less on your company or its offerings and more on the customers themselves. Because if customers believe that you’re putting their needs first, they’re more likely to remain loyal to your company. So ask yourself: What challenges do they face? Which financial issues tend to keep them up at night? How can your company make their lives better?
Companies choose to address some of these types of questions when they produce how-to videos. As the name implies, these videos teach viewers how to do something that will help them add value or accomplish something important. Examples may include videos which tell them how to:
- Utilize an adhesive product to build a patio table
- Use financial software to set aside enough money for retirement
- Work with a bank to earn more interest on their accounts
- Mix and match their jewelry to create a look that’s ideal for a beach party
- Configure their smart home technology to reduce their energy bills
While how-to videos concentrate on a single problem, video can also be utilized to address multiple questions at once. These FAQ videos often consist of a company representative providing the answers to questions that are frequently asked by their customers about the company’s product or services.Such videos are most effective when they can visually convey valuable information to the viewer. So rather than simply producing an FAQ video that relies solely on an on-camera spokesperson, companies should include graphics, animation, computer screenshots, role-playing actors, and other illustrative approaches which show customers the answers to their questions rather than telling them.
But one of the biggest advantages of video is its ability to be distributed online by companies and shared by viewers. The better the quality and relevance of the video content, the higher the odds of people being entertained, sharing it with their social networks, and viewing your company in a positive light.
Examples of these types of videos may include:
- An instructional video where a kitchen utensil is used in the process of following a recipe for a unique dessert for guests
- Providing a special coupon code in a video which gets customers a discount on a particular product or service
- A humorous, mobile-friendly video that is designed to go viral
Remember this Krazy Glue commercial from decades ago? It showed that the product was strong enough to suspend a man from a construction beam – and people haven’t forgotten it.
Videos That Bolster Your Image or Brand
These days, the power of video is being leveraged to accomplish other business functions more effectively. Whereas certain information might have been conveyed via email blast, press release, or snail mail in the past, many companies are turning to video instead because they know viewers tend to retain more material by watching it than reading it.
So the next time your company is rebranding, adding a new product, or even altering its terms of service, why not make a video about it instead of relying on print? The video production may take a little longer than the conventional method, but if your goal is for customers to digest the information and act accordingly, the extra time investment will be worth it. Plus, customers will feel like they’re “in the loop” when it comes to company changes or product updates – and that allegiance should translate into higher customer retention rates.
Another way to backstop your brand is to create a company ambassador who can be showcased through video content. It can be a celebrity (like William Shatner for Priceline.com), a human character (like “Mayhem” for Allstate), an animal (like the duck for AFLAC), or even an animated character (like the talking M&M candies).
If a consumer can easily identify with a brand through its “video ambassador,” then he or she won’t think twice about spending more money with that company. And the more of these types of customers you can get, the lower your customer retention costs will be.
The Utility of Live Video
Video is also the perfect medium for hosting live events. With so many video platforms available online nowadays, it doesn’t take much preparation to plan and show a live video to your current or potential customers.
Many companies are opting to broadcast press conferences over the web during which they announce new product launches, corporate mergers, or charity initiatives. Another popular application is a live Q&A or ask-me-anything video session in an effort to strengthen the relationship with their customers.
Some companies may wish to limit the access to certain live video content to their current customers. They do this by emailing or texting a link and/or access code along with a date and time to their current customer base which allows them to enjoy a special event (like a free concert, for example).
Live video is also ideal for B2B businesses. Companies frequently host webinars or online conferences to demonstrate their thought leadership and proficiency in their industry. The customers who are “invited” to these events can obtain knowledge, while the companies who produce them gain loyalty from their customer base.
“Outside the Box” Video Applications
Barclays’ welcome video for one of its new customers
Finally, some organizations are heavily incorporating video into functions where it has rarely been used before. For example:
- Video newsletters or vlogs are being utilized by companies to keep their customers informed and entertained in the same way that blogs and print newsletters used to do.
- Technology has advanced to the point where companies can personalize video content for individual customers for certain purposes (like a customized “Welcome” video or birthday greeting).
- Companies are even turning to augmented reality video to allow customers to easily envision a product in a particular environment (like a new TV in a photo of a den or a new dress on the body of a customer).
Of course, it’s wise not to grow your customer retention efforts while jettisoning your new customer outreach entirely. And any complex video strategy will probably require the services of a professional video production company. But given the omnipresence of video now (especially online), it may make sense to use it to retain your current customers and increase your repeat business.
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Nice article Andrea. It is crisp and to the point and covers most important retention through video strategy points briefly. Would love to explore on these points. Keep writing.