7 Actionable Strategies to Increase Customer Retention

FACT: Acquiring a new customer can cost 5 to 25 times more than retaining an existing one.

Not only is retention cheaper than acquisition, but it also has a staggering ROI. Research shows that increasing customer retention by 5% can increase profits by 25 to 95%.

 With the threat of a recession, it has become mission-critical for businesses to identify ways to cut costs and save money, making customer retention a much more practical and cost-effective marketing strategy than ever before.

 Here are seven strategies to keep your customers happy and engaged:

Focus on the Experience

Boost retention by providing customers with a high-quality experience. Take time to understand your audience’s unique needs and wants so that you can tailor your offering, customer service strategy, communications, and operations to meet and exceed their expectations. Delivering this first-class experience consistently builds trust.

Ask for Feedback

Regularly invite customers to share their feedback. Allow them to weigh in on their purchase experience, rate their satisfaction with your product/service, and offer suggestions for improvement. The format could be a survey, email, or phone call. Review responses to identify trends and proactively solve problems that could impact a consumer’s decision to take their business to a competitor.

Communicate Consistently

In today’s market, competition is high, and loyalty is low. Keep your brand top-of-mind by developing a strategic communications plan for current customers. This might include email marketing, newsletters, promotional offers, social media, blogs, videos, podcasts, etc. Leverage data captured in your CRM to personalize communications and increase their interaction and engagement.

Set & Exceed Expectations

Do what you say you’re going to do. And then do a little more. Go beyond simple satisfaction and strive to delight customers. Delighted customers are often happy to share their experiences with others. Consider what they expect from you, your competitors, and the industry, and offer a simple upgrade. Oftentimes, little things can go a long way.

Reward Loyalty & Referrals

Scratch their back and they will scratch yours. Identify opportunities to reward and incentivize consumers that demonstrate brand loyalty. Create a rewards program for customers who frequently buy your products. Develop incentives for customers who refer your services to their networks. Offer discounts and promotions for meeting tiered milestones. 

Collaborate on a Common Cause

Doing good is good business. Today’s consumer doesn’t just like when a brand gives back, they expect it. Identify a cause or initiative that aligns with your values and determine ways that you can work together to contribute in a meaningful way. Showing your commitment to the community is an opportunity to personify your brand and create an emotional connection with your customers.

Engage Employees

Employee engagement drives customer satisfaction. Employees who are happy and invested are more willing to go the extra mile and deliver exceptional experiences. Set expectations, communicate effectively, encourage collaboration, allow them to take ownership, offer opportunities, and lead by example.

There is no one-size-fits-all way to approach customer retention. It will vary greatly based on your audience, industry, and offering. However, your approach should integrate various strategies that provide customers with a favorable impression from end to end.

My best advice? Put yourself in your customer’s shoes. Remain focused on their needs, wants, and expectations.