customer-retention-strategies

What Are Customer Retention Strategies? Customer Retention Strategies In A Nutshell

Customer retention strategies are used by businesses to retain their existing customers and build positive relationships with them. Customer retention itself is the ability for a business to turn its customers into repeat buyers and prevent them from doing business with a competitor. Some of these strategies comprise responsive customer support, customer loyalty programs, email marketing, customer surveys, and contextual customer support.

Understanding customer retention strategies

Customer retention strategies are those that help an organization retain customers.

Customer retention is more efficient and more profitable than customer acquisition, which aims to move customers through a marketing funnel and convince them to buy products or services.

Perhaps unsurprisingly, customer retention strategies are the lifeblood of subscription-based companies and service providers. Regardless of the business, however, customer retention strategies must focus on improving the customer experience to a point where customers are willing to recommend a brand to their friends or family.

Five customer retention strategies

Here are five ways a business can make its customer experience more convenient, personal, or rewarding:

Responsive customer support

Research proves that agile and responsive customer support results in higher customer satisfaction. In fact, a 2021 study found that 73% of surveyed customers considered speedy support resolutions the key to a good experience. Even when a problem cannot be solved right away, it is important businesses respond as quickly as possible to set the process in motion.

Customer loyalty programs

These are an effective way to boost customer retention because the promise of rewards motivates customers to purchase more frequently. Businesses can award customers points simply for creating a new account. Others may reward customers based on the total purchase amount or offer a discount code for a subsequent order. Today, buyer analytics data makes it easy for a business to determine its most loyal customers and reward them accordingly.

Email marketing

email-marketing
Email marketing leverages a set of tactics to build a stronger brand, drive traffic to your products, and build a solid funnel for converting leads into loyal customers. While email marketing isn’t new, it’s still one of the most effective marketing strategies to build a valuable business.

A customer retention strategy where purchase frequency is the focus. Many businesses shy away from email marketing, but in truth, the approach can be used to develop deeper relationships with customers before and after an initial purchase. Email marketing should always add value and not be seen as a carte blanche excuse to spam customers with offers.

Customer surveys

These are critical to determine what the business is doing right and what it could do better. While an organization can never please every customer on every occasion, surveys are used to gather important feedback that can help identify overlooked patterns or trends. This feedback can be supplemented by customer support officers who can identify complaints or problem topics that reoccur frequently.

Contextual customer support

For consumers, there is often nothing worse than having the explain the same problem multiple times to different support staff. To increase customer retention, staff can use a tool such as Zendesk to give them context and personalize the experience. For example, support staff can easily pull up information on a customer’s contact details, notes, preferred language, and any previous conversations to get up to speed quickly.

Key takeaways:

  • Customer retention strategies are those that help an organization retain customers.
  • Customer retention strategies are particularly important to subscription-based businesses. However, the supreme importance of customer retention over customer acquisition is relevant to any organization regardless of its business model.
  • Examples of customer retention strategies include responsive customer support, customer loyalty programs, email marketing, customer surveys, and contextual customer support.

Main Free Guides:

Connected Business Frameworks

Ansoff Matrix

ansoff-matrix
You can use the Ansoff Matrix as a strategic framework to understand what growth strategy is more suited based on the market context. Developed by mathematician and business manager Igor Ansoff, it assumes a growth strategy can be derived by whether the market is new or existing, and the product is new or existing.

Blitzscaling Canvas

blitzscaling-business-model-innovation-canvas
The Blitzscaling business model canvas is a model based on the concept of Blitzscaling, which is a particular process of massive growth under uncertainty, and that prioritizes speed over efficiency and focuses on market domination to create a first-scaler advantage in a scenario of uncertainty.

Blue Ocean Strategy

blue-ocean-strategy
A blue ocean is a strategy where the boundaries of existing markets are redefined, and new uncontested markets are created. At its core, there is value innovation, for which uncontested markets are created, where competition is made irrelevant. And the costvalue trade-off is broken. Thus, companies following a blue ocean strategy offer much more value at a lower cost for the end customers.

Business Analysis Framework

business-analysis
Business analysis is a research discipline that helps driving change within an organization by identifying the key elements and processes that drive value. Business analysis can also be used in Identifying new business opportunities or how to take advantage of existing business opportunities to grow your business in the marketplace.

Gap Analysis

gap-analysis
A gap analysis helps an organization assess its alignment with strategic objectives to determine whether the current execution is in line with the company’s mission and long-term vision. Gap analyses then help reach a target performance by assisting organizations to use their resources better. A good gap analysis is a powerful tool to improve execution.

Business Model Canvas

business-model-canvas
The business model canvas is a framework proposed by Alexander Osterwalder and Yves Pigneur in Busines Model Generation enabling the design of business models through nine building blocks comprising: key partners, key activities, value propositions, customer relationships, customer segments, critical resources, channels, cost structure, and revenue streams.

Lean Startup Canvas

lean-startup-canvas
The lean startup canvas is an adaptation by Ash Maurya of the business model canvas by Alexander Osterwalder, which adds a layer that focuses on problems, solutions, key metrics, unfair advantage based, and a unique value proposition. Thus, starting from mastering the problem rather than the solution.

Digital Marketing Circle

digital-marketing-channels
digital channel is a marketing channel, part of a distribution strategy, helping an organization to reach its potential customers via electronic means. There are several digital marketing channels, usually divided into organic and paid channels. Some organic channels are SEO, SMO, email marketing. And some paid channels comprise SEM, SMM, and display advertising.
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