Customer Retention Strategies to Keep Your Business Growing
17 mins readSep 21, 2022
Retaining two or more customers is much easier than acquiring one new one. Although capturing new customers is always alluring, keeping the existing ones along can give you greater ROI, costing 5 to 25% less.
How do you retain existing customers?
The answer is simple; there are 2 points you need to focus on. First, quickly know why your customers are unhappy about your product and services and decide to leave; second, how you can build a good customer retention strategy to retrieve them.
In this blog, we have broken down some valuable points to make the best customer attention strategies that successful brands currently use and inspire customer loyalty.
What is the customer retention rate?
Customer retention is an analytical analysis that businesses use to measure customer loyalty and success over time. To enhance customer retention, businesses implement different strategies to reduce churn by improving customer experiences to ensure that they remain Loyal to their company.
How to calculate customer retention rate?
It’s simple; you can minus newly acquired customers from total customers and divide them by the number of customers at the start of the period.
(Total # of Customers at the end of the Period - New Customers Acquired)/(Customers at the Start of the Period = Customer Retention Rate)
How to build customer retention strategies?
You can do several things to keep your customers coming back, but it all starts with providing them with an exceptional experience that meets their needs and exceeds their expectations—it begins with building a robust customer retention strategies
1. Create a strong onboarding experience.
For startups getting your customers to know about your company, trying out your products and services and (hopefully) falling in love with it. At the same time, businesses are getting to know their customers better, too—understanding their needs, wants, and expectations.
That’s why creating a strong onboarding experience is crucial. Done right, it can help turn first-time buyers into lifelong fans; done wrong, you risk losing them forever.
First impression: It’s no secret that first impressions matter. When it comes to onboarding new customers, you only have one chance to make a good impression and set the tone for the relationship.
The goal of customer onboarding is to help new customers get up to speed with your product or service as quickly and efficiently as possible. A good onboarding experience as a part of customer retention techniques, will not only reduce customer churn, but can also increase customer satisfaction and loyalty.
Make it personal: Your onboarding experience should be tailored specifically to each individual customer. Consider their needs, wants, and goals when designing your process.
Keep it simple: Don’t try to cram too much information into the onboarding process. Stick to the essentials and leave room for questions and feedback.
Be responsive: Be available to answer questions and address concerns throughout the entire process. This includes before, during, and after signup/purchase. When something goes wrong—which it inevitably will—be quick to fix it. And when things go right, be sure to let your customers know that you appreciate their business. A simple “thank you” can go a long way towards building loyalty and creating advocates for your brand.
Set clear expectations: Customers should know exactly what they need to do at each step of the process and what they can expect from you (e.g., support availability).
Creating a strong onboarding experience doesn’t have to be complicated or time-consuming—just remember to keep it personal, simple, responsive, and clear!
2. Provide a personalized customer experience.
It’s no secret that providing a personalized customer experience is key to retaining customer loyalty. In fact, according to a study by Accenture, 80% of consumers are more likely to do business with a company if it offers personalized experiences.
1. Get to know your customers: Knowing your customers is always the first step. What are their needs and wants? What are their pain points? The better you understand your customers, the easier it will be to provide them with a personalized experience.
2. Use data and analytics: Data and analytics can help you better understand your customers and identify personalization opportunities. Look at customer purchase history, website behavior, and demographic data. This information can give you insights into what type of content or offers your customers would find most relevant.
3. Personalize your communications: Once you understand who your customers are and what they want, you can start personalizing your communications with them. This could include using their name in emails or sending targeted content based on their interests.
4. Make it easy for customers to provide feedback: Finally, make it easy for customers to provide feedback so you can continue to improve the customer experience. You can do this through surveys, social media, or even talking directly to customers.
3. Build trust with your customers—inevitable part to customer retention strategies
Trust is the foundation of any good relationship, and it’s no different when it comes to business. Your customers need to trust that you’re going to deliver on your promises and that they can rely on you to do what you say you’re going to do.
Be transparent: Customers appreciate honesty and transparency, so make sure you’re always upfront with them about what you can and can’t do. If there are any potential problems with an order or product, let them know as soon as possible so they can make an informed decision about whether to proceed.
Keep your word: This one is pretty self-explanatory—if you say you’re going to do something, make sure you follow through. Whether it’s a delivery date, a price promise or anything else, if you commit to something, then make sure you stick to it.
Communicate effectively: Good communication is essential for building trust. Ensure you update your customers at every stage of their order or purchase, from confirmation to delivery. And if there are any delays or problems, don’t hesitate to contact them and let them know what’s happening.
Building trust with your customers is one of the key element of customer retention strategies—essential if you want to create lasting relationships and turn one-time buyers into lifelong fans. By being honest, keeping your word, and communicating effectively, you can create the foundation for a robust customer-business bond that will stand the test of time.
4. Implement a customer feedback loop—unavoidable proportion of customer retention strategies
It’s no secret that customer feedback is important for businesses. It helps you understand what your customers want and need, what they like and don’t like about your product or service, and how you can improve—key aspect of customer retention strategies.
But simply collecting feedback is not enough. You also need to implement a customer feedback loop, which means taking the feedback you’ve collected and using it to make changes in your business. It can be challenging, but it’s essential for retaining customer loyalty and growing your business.
1. Collect customer feedback regularly. Feedback should be collected on a regular basis, whether through surveys, interviews, focus groups, or other methods. It ensures that you get timely information that you can use to make changes in your business.
2. Analyze customer feedback carefully. Once you’ve collected customer feedback, it’s essential to take the time to analyze it carefully. Look for patterns and trends in the data so that you can identify areas where changes need to be made.
3. Responding to customer feedback: Based on your analysis, decide how you will respond to the feedback you’ve received. It could involve changing your products or services, changing your marketing strategy, or improving your customer service.
4. Measuring the results: After implementing changes based on customer feedback, it’s essential to measure the results to see if they’ve had the desired effect. If not, you can adjust your approach accordingly and continue collecting and responding to feedback on an ongoing basis.
5. Maintain a customer communication calendar—can’t skip from customer retention strategies
It’s essential to keep the lines of communication open with your customers, and one way to do that is by maintaining a customer communication calendar. It can help you stay organized and ensure that you’re regularly reaching out to your customers.
You should keep a few things in mind when creating your customer communication calendar. First, consider your channels to reach out to your customers. It could include email, social media, phone calls, or even snail mail. Then, decide how often you want to communicate with them. It’s important not to overdo it, but you also don’t want to go too long without checking in.
Once you have a plan for how often and how you will reach out to your customers, start filling in the details of what each interaction will look like. For example, if you decide to send monthly newsletters via email, make sure to block off time on your calendar each month to write and design the newsletter. If you want to post on social media once or weekly, schedule time for that as well. And if you plan on making phone calls every other week, add those dates and times to your calendar.
By having a solid plan for customer communication, you can be sure that you’re staying top-of-mind with your target audience and keeping them updated on what’s going on with your business. It helps build relationships and keeps retaining customer loyalty for more—a very important component of customer retention strategies.
6. Send a company newsletter—A vital component of customer retention strategies
Your company newsletter is one of the most important tools in your customer retention strategies. It’s a great way to keep your customers up-to-date on what’s happening with your business, giving them a reason to stay subscribed to your email list.
But creating a company newsletter that people want to read can be challenging.
1. Keep it short and sweet. No one wants to read a long, rambling email from a company they do business with. Get to the point and make sure every word counts.
2. Make it visually appealing
Use images, infographics, and videos to make your newsletter more visually appealing. People. are more likely to engage with easy content on the eyes.
3. Make it personal. Address your customers by name whenever possible, and ensure the newsletter’s tone feels like it’s coming from a real person rather than an impersonal corporation.
4. Use an attention-grabbing subject line
Your subject line is what will determine whether or not people even open your newsletter in the first place. So make sure it’s something
eye-catching and intriguing enough that they can’t resist clicking through to see what’s inside.
7. Start a customer education program—An integral part of customer retention strategies
To keep your business afloat (and growing), you must focus on keeping your customers happiness.
One of the best approach of a robust customer retention strategies— is to start a customer education program. By teaching your customers about your product or service, you’ll not only help them get more value from what they’ve purchased from you but also increase the chances that they’ll continue doing business with you in the future.
There are a few different ways you can go about starting a customer education program as a part of customer retention strategies.
An online course: This could be a series of blog posts, videos, or even an email course. The key is to make sure that the content is engaging and easy to follow on all the technical details of your products.
An FAQ section on your website: This is a great way to address common questions and concerns that potential and existing customers might have. Plus, it’s an easy way to provide valuable information without putting too much effort into creating new content.
In-person events: If you have the resources, hosting in-person events can be a great way to connect with your customers and teach them about your product or service in a more intimate setting.
No matter which approach you decide to take, remember that customer education should be an ongoing process—not something that you only do once in a while when it’s convenient. By making it part of your regular routine, you’ll ensure that your customers always have access to the
information they need—and that they keep coming back for more!
8. Offer unique services
Without offering greater services, you cannot make successful customer strategies.
What’s the best way to keep your customers coming back? Offer unique services that they can’t find anywhere else as a part of customer retention strategies.
Think about what makes your business special and use that to your advantage. If you have a unique product or service, make sure your customers know about it. Let them know what sets you apart from the competition and why they should come back to you again and again.
Make sure your customer service is top-notch. Train your staff to be friendly and helpful, and always go above and beyond to resolve any issues. This is one area where you need to excel to keep your customers happy.
Keep your prices competitive. Take a look at what your competitors are charging and ensure you’re in line with them (or even better—offer lower prices!) No one wants to feel like they’re being ripped off, so ensure you’re offering fair prices for your products and services.
Stay relevant. Keep up with industry trends and ensure you offer the latest products or services your customers are looking for. If you can show them that you’re always on the cutting edge, they’ll be more likely to stick with you instead of going elsewhere.
A robust plan for customer retention strategies helps businesses drive more value by influencing potential customers and building like-minded societies. All begin from achieving the right calculations on how many customers left you in the previous month and the reasons. You can draw these results hypothetically, but it’s slow, time-consuming, effort-prone, and often wrong. You can’t rely on manual calculations to match the fast world’s competition, especially when your customers want immediate results.s
Using tools to automate your tasks, no matter what task type, has revolutionized the tech world. You would have seen businesses using excellent tools to quicken their tasks and produce faster results. One of the important tools is using the Churnfree tool to drill down the right information on their customers, gain more visibility into the matter, and make the best business decisions.