Forex market today is a haven of new technologies and fierce competition based on the desire of many brokers to provide ideal trading conditions for their clients on the one hand and to maximise profits on the other hand. Taking into account the mechanics of any business, the task of Forex companies comes down to the expansion of the client base, as well as the retention of existing customers.

This article is a guide to the world of Forex strategic marketing planning, explaining the nature of the customer retention mechanism, its role in the Forex business, and a few successful strategies to help increase customer retention and sales.

Key Takeaways

• Customer retention rate is a fundamental metric of the degree of effectiveness of the internal marketing program of a Forex business.
• Client retention comes down to the formation of triggers that keep clients interested in using the products and services of a Forex company.

What is Customer Retention in Forex Niche?

The principles of building any business are based on the balance between the degree of satisfaction with the quality of products and services provided by the company and the level of profitability of its activities. This balance is achieved through a well-planned marketing strategy, which is part of the overall concept of business development of the company, determining its success in the Forex niche. In turn, marketing strategies are used not only to attract new clients but also to retain existing, loyal customers.

Measures aimed at retaining existing clients are a system that works on the principle of stimulating and maintaining their interest in the products and services of the Forex company, which is expressed in high customer satisfaction and stable indicators of the company’s profitability from the promotion of its solutions. In this process, different kinds of metrics are used, which directly or indirectly reflect the degree of effectiveness of customer retention strategies in practice, i.e., help the company to analyse the customer retention rate, which is a fundamental metric used in assessing the percentage of the “hot” target audience (clientele) of the company, which returns for repeat purchases/use of services.

The client retention process is similar in essence to the lead generation process in the Forex business but differs from it in that it uses a slightly distinct set of techniques and tactics for encouraging customers to continue using the company’s services or products, thus helping to boost brand recognition to a certain extent. Unlike customer acquisition, the retention process is based on a system of continuous stimulation of users’ interest in using the company’s products, which includes the principles of psychological analysis and applies the principles of human behavioural models to create conditions allowing to maintain a stable level of customer loyalty.

Why Customer Retention Plays a Crucial Role in Forex Business Success?

One of the most important duties of a brokerage business is thought to be the customer retention procedure. In order to maintain a high level of consumer interest in the goods and services provided by Forex brokerage, it is necessary to develop and implement extremely effective marketing approaches and advertising strategies. Forex is still a high-margin company, and competition is growing every day. For the same reason, one of the primary strategic goals of businesses involved in the Forex market continues to be the prompt and efficient maintenance of the target audience’s conversion rate at a constant level.

Since the basis of any business is its customers, its retention plays a paramount role in the company’s life cycle. As a consequence, the success and effectiveness of various retention tools are determined by the degree of customers’ interest in the company’s products/services, in other words, their desire to continue cooperation with the company without changing their preferences. Ultimately, this helps to maintain a consistently high level of profit, as well as to support internal business processes, in particular, to develop and improve the user experience of interaction with the company’s products.

As mentioned above, Forex is a very competitive field, and the number of active users of a company directly affects its ability to maintain a level of competitiveness and stand out in the market. The customer retention rate is as important as the generation of new leads, forming the basis of both the marketing strategy of the company and the entire business plan as a whole. In many cases, specific strategies are used to improve customer retention, the essence of which is to obtain a higher retention rate by implementing a system of interrelated practices to improve the customer experience and ultimately achieve a high level of customer satisfaction.

Best Strategies for Efficient Customer Retention

The importance of customer retention is hard to overestimate, so every Forex company strives to maintain a consistently high level of customer interest in the products and services it offers. For the possibility of effective client management and retention, there are special techniques that have gained great popularity and have become indispensable tools in the system of lead management. Let’s consider them below.

Personalised Communication

One of the key ways to increase customer retention is to personalise your communication with them. Nobody wants to be treated like a faceless mass. It helps a lot if your communication is personalised. Even something as simple as using their real name in emails rather than something like “client.”

When you send personalised offers based on a customer’s preferences, purchase history, and purchasing behaviour, you show them that you value their personal situation. Moreover, 78% of customers cite personalised communication as one of the reasons they are more likely to make a repeat purchase.

Loyalty Programs

Loyalty programs are more important than they seem at first glance. For example, 57% of the clients spend more on brands they are loyal to. When a customer joins your loyalty program, they are more likely to make a repeat purchase and are more likely to shop with your brand again in the future.

Currently, 35% of loyalty program members feel special and recognised as brand ambassadors. That’s not a lot, but when you compare that to the 57% of customers who spend more on brands they’re loyal to, it’s clear how beneficial it is to personalise communications and make loyal customers feel more seen. They will spend more on your brand.

Segmentation

Segmenting customers into distinct groups based on specific characteristics, behaviours, preferences, or demographics allows you to develop customer retention strategies. One example of segmentation is to offer localised offers for different geographic regions. If the U.S. celebrates Independence Day, you might offer your U.S. customers an offer timed to coincide with the Fourth of July.

Another great way to segment your customers is to divide them into groups, which makes retargeting easier. For example, if someone has registered a complaint, you can put them in a segment with other dissatisfied customers. This way, you can address their concerns in your customer retention campaign.

Multichannel Presence

It’s important to be where your customers are. What this means is that a strategy aimed at regularly posting on Facebook if your clients are on TikTok may not work and will not bring the desired results. By knowing your customers like the back of your hand, you can create content specifically for them and exactly where they will see it. Maintain your presence on various social media platforms, emails, and even physical offices if necessary.

At the same time, companies with omnichannel customer engagement strategies retain an average of 89% of their customers, while companies with weak omnichannel experiences have a customer retention rate of 33%.

Conclusion

The online brokerage industry is growing by leaps and bounds, which increases the already fierce competition and struggle for customer data every day. Using the above-mentioned retention strategies, it is possible to achieve impressive results both in the marketing part, conducting data analysis of retained customers, and in other important processes of formation and management of the client base, such as lead generation.