Taken together, they can serve as a solid foundation for a successful customer retention strategy. For many businesses, customer retention/churn is a key KPI, because a company’s ability to retain existing customers is fundamental to both its short-term and long-term success. But change puts these relationships at risk — and, in turn, your company’s customer retention rate.
For example, in 2019, we completed the process of becoming a certified B Corp. The certification both keeps us aligned to our values as a company and shows our customers that our purpose is not only profit but also a positive customer retention solutions impact for employees, communities, and the environment. Most people prefer products and companies that resemble them in some way. This cognitive bias is called implicit egotism and is an important thing to keep in mind.
Customers are more likely to ignore you if your company doesn’t stand for anything. If you want loyal customers, you need to create real connections with them by letting them know what values you share. Very few customers feel they have relationships with the brands they purchase from and use. In fact, a study by the Corporate Executive Board that included 7,000 consumers from across the U.S. found that only 23% of consumers have a relationship with a brand.
- You’ll do more damage than good by rushing and delivering something that creates more problems than it solves.
- Having a live chat or help desk tool available can turn a customer question into a sale or a customer complaint into a resolution, whether they come in on site, through email, or via social media.
- If polled, these dissatisfied buyers get asked about their decision before departing; their answers should help to improve lackluster service, making it easier to retain customers in the future.
- Whether you build a profile, lean into gamification or vastly overhaul your customer service, these steps are essential for improving customer experience.
Polaris aims to retain valued customers by utilizing powerful support software to achieve best-in-class support across several channels, increasing agent productivity by 30 to 40 percent. 73 percent of customers https://www.xcritical.in/ surveyed in our 2021 CX Trends Report said that speedy support resolutions are key to a good customer experience. The primary goal of retaining customers is to increase the lifetime value of their accounts.
If brands support social causes, there’s a higher probability they’ll be more effective at retaining their customers. Focus on combining the insights of your customer service team with direct feedback from your customers. Gather direct feedback from your customers through surveys, the comments they make on social media, and what they’re saying about you on online forums. When your customers go out of their way to recommend your product or service to others, let them know that you see and appreciate it!
Even if positive feedback feels good, it is often the negative feedback that is more important. If polled, these dissatisfied buyers get asked about their decision before departing; their answers should help to improve lackluster service, making it easier to retain customers in the future. If you look around your desk or room, you will likely find a product created by a major brand, a business near the forefront of its industry.
In order to do that, let’s look at three of the most important customer retention metrics and examine why they matter. However, if you have a few solid strategies up your sleeve, you can coax your existing customers back for more. I mentioned earlier that your value proposition can have an incredible impact on customer retention, especially if you incorporate value that goes beyond your product or service. It sells shoes for profit, but for each pair a customer buys, the company donates another pair to someone who needs them. If you have a dedicated customer retention team, spend time training them on all the strategies I’ve described in this article.
Build in steps for initiatives and projects that both parties can look to and be excited about the current and next stage of the relationship. When you dedicate time, resources, and creativity to improving your retention, your current customers will be delighted and want to continue doing business with you. Before diving into specific customer retention management strategies let’s cover the basics. The catch is that you can retain a customer without gaining their loyalty.
Some of the best customer retention examples are extremely simple, but they can boost profits by an incredible margin. Maybe you use a related products plugin to suggest more items for customers to buy. You could A/B test the placement of that widget to see which layout results in more conversions. Make sure the checkout and delivery process is as smooth as possible. Send a thank-you email to let the customer know how much you appreciate their business, and direct them to any helpful videos or guides.
Prioritize customer satisfaction to ensure your buyers stick around for the long run and tell others about their experiences with your business. Customer retention indicates whether your product and the quality of your service please your existing customers. It’s also the lifeblood of most subscription-based companies and service providers.
In all of your post-sale marketing communications, remember to remind customers of why they bought from your brand in the first place. Getting them to come back rests on your ability to show them why an additional purchase is worth their time and money. You can make this initial email even more impactful by recommending products that complement their initial purchase. These endorsements will increase both the value of each recommended product and the customer’s desire to buy. Should you want to do this manually, all you need to do is divide the number of customers with more than one purchase by the number of unique customers. This is the number of different customers that purchased from your store in a distinct time frame.
Use the industry retention benchmarks above to assess whether or not you are meeting customer expectations. Like telling a story to friends, you want to engage as many users with your product experience (PX) for as long as possible. 50 percent of high-performing companies have an omnichannel strategy in place, compared to just 18 percent of their lower-performing peers. And exhausting, repetitive interactions make customers more likely to leave. Customers are more willing to wait if they know you’re actively working towards a solution; setting time frame expectations upfront helps. It is no surprise that the “buy now, pay later” (BNPL) model has exploded in popularity in recent years.
All in all, customer retention is a valued component of any business growth strategy and should be minutely adhered to and planned to build a better, greater business prospect for the future. The Customer Retention Rate (CRR) represents the percentage of customers your company is able to retain over time. It accounts for the number of new customers your company attracts as well as the number who churn — meaning those who stop purchasing, cancel their contracts or subscriptions, etc. The good news is you don’t have to juggle all of this alone—the right customer relationship management (CRM) platform can help make the process of retaining customers a lot easier. For example, a bookstore might offer a loyalty program where customers get a stamp for every book they purchase. One example of a customer retention program is a point system where individuals can collect points for each purchase they make.