Customers are the most valued asset of any business. Without customers no business can survive hence every business owner tries to retain its customers.
Growing your business is important but in order to keep your business running, in the long run, retaining your existing customers is also very important.
Customers who are retained for a longer period of time will turn into loyal customers therefore retaining customers requires extra effort but is worth it.
Also Read: 5 Ways To Generate More Sales From A Website
In fact, according to a study, 82% of businesses have stated that customer retention is comparatively cheaper than acquiring new leads.
Therefore now more and more businesses are investing their money into creating subscriptions and engaging deals for their existing customers in order to retain them.
In this blog post, we will discuss how businesses can improve their customer retention.
What Is Customer Retention?
Customer retention is defined as the business’s ability to retain or keep doing business with its client over a long period of time.
A customer retention strategy consists of different activities that help businesses to gain active engagement and repeat purchases from the customer.
Popular retention methods are user-generated content, loyalty programs and virtual communities.
Now you might be wondering how to calculate the customer retention rate of your business.
Well here is a formula that will help you calculate customer retention:
Customer Retention= (E-N)/Sx100 = CRR
You will need the following information to calculate your customer retention:
S is the total number of customers or users at the beginning of a specific duration for instance 4 months or a year.
E is the total number of customers or users at the end of the specified duration.
N is the total number of customers or leads acquired during the specified period.
So with all this data, you can calculate your customer retention.
Why Is Customer Retention Important?
Here are some of the benefits of customer retention to your business.
- It is cheaper than lead acquisition.
- Your business can gain new customers through referrals from existing clients.
- It will help you increase customer loyalty and will create a strong image of your brand.
- Customer retention improves customer’s size and increases the revenue of your business.
- You can collect data from your existing clients and use that data to develop your product and future marketing campaigns.
Customer Retention Strategies
The following are some of the strategies that you can use to improve your customer retention:
Create Experiences For Your Customers
One of the best ways to retain your customers is by creating an experience for your audience.
Don’t just sell your products because the audience does not only want beneficial products but are also looking for an engaging buying experience.
That is why many businesses have started incorporating interactive activities and storytelling into their marketing plans.
For example brands like Coca-Cola are known for their wonderful campaigns that complement their mission of uniting people through shared experiences.
So you can integrate interactive and unique activities into your future marketing campaign in order to increase your customer retention.
Reward Your Customers
These rewards programs will also allow you to gather data of users directly from your customs in exchange for incentives and offers.
You can also send promos on special occasions like milestones or birthdays to make your customer feel special.
Giving rewards and incentives to your customers will help you build a relationship with them which will increase the chances of retention.
Make Your Services Accessible
The majority of people look for products that have multiple benefits and are easy to use. Hence you must keep on updating your products so that your audience doesn’t get bored.
For instance, Google updates its maps regularly with features that make the app more accessible to a large number of people.
Hence making your brand user-friendly and improvising your brand will increase the chances of customer retention.
Just like everyone else you also want your business to expand and increase its revenue and one of the best ways to do that is by retaining your customers.
So if you want to retain your customers you should use the aforementioned techniques or hire a professional digital marketing company to help you build your brand.
If you want to help your brand reach a larger audience and want to retain that audience you should hire a certified digital marketing company such as Reach First.